Can a wage garnishment be enforced on a 1099 independent contractor?
2007-07-19 12:09:15 · 4 answers · asked by Barbara A 1 in Business & Finance ➔ Taxes ➔ United States
Yes an no. What will happen is a levy will be issued to any company or individual paying the taxpayer that has the tax debt. The levy will require that the payor remit funds to the IRS. Is it a "wage garnishment"? No, but it in effect serves the same purpose and achieves the same results. You need to secure a hold against collections on the account or get into compliance and set up an arrangement to satisfy the debt immediately to prevent levy action. In addition to the levies on your clients if you are an independent contractor the IRS can also levy your bank accounts. I have a good amount of information on levies as well as tax liens and various payment arrangements on my website which you can read through free of charge. I also provide no cost and no obligation telephone consultations if you are considering hiring a professional to represent you. I am an Enrolled Agent licensed to represent taxpayers before the IRS and do so on a daily basis. Hope the information helps and best of luck.
eTaxrelief.com
2007-07-21 12:13:06 · answer #1 · answered by Chris J, President at eTaxrelief 2 · 0⤊ 0⤋
Yes. Companies are required, once they receive written notification of a garnishment, to remit to the agency any funds that are payable to you until the agency notifies the company in writing the amount has been paid in full.
2007-07-19 12:24:16 · answer #2 · answered by Itsok 3 · 0⤊ 1⤋
No, because an independent contractor is not an employee and is not paid wages.
2007-07-19 13:16:56 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Yes.
2007-07-19 12:20:50 · answer #4 · answered by mister_galager 5 · 0⤊ 1⤋