Having your paycheck garnished can be scary. A lot of people live paycheck to paycheck and even a small disruption can mean big trouble when bills come due.
If you have debt from medical bills or credit cards, your check can’t be garnished until there’s a court judgment against you. But if you have unpaid income tax to Kansas, garnishment can go through much swifter because no judgment is required first. Kansas garnishment follows Federal law and in most cases the maximum amount garnished is 25%. But there are exceptions to these restrictions if the debt you owe is income tax. In this case, Kansas garnishment can be as high as 50% of your net wages!
Fortunately, Kansas City Tax Mediation is here to help. It depends on your individual situation, but you may qualify to file a Petition for Abatement. That is when you ask the Department of Revenue to settle your tax debt for less than the amount you owe. An approval is based on your ability to pay the owed debt, or on the validity of the debt. What does validity of the debt mean? Well, if you have missing years of tax returns, your Kansas garnishment was based on estimated figures. There’s a good chance once we prepare those tax returns, the amount of tax you owe will not be as great as they estimated. We can petition the revenue department to adjust their assessment based on this new information.
It’s NOT too late to get help! Kansas garnishment can be stopped even if they’ve been collecting for a long time. Call us today to come in and speak with a Kansas CPA; find out what your rights are!