I presently have a huge feeral tax debt totalling $40K and I'm making monthly payments toward that now. Though they are not garnishing my wages as I'm sincerely making my monthly payments, they have informed my employer to take my deductions down to zero. I'll be laid off in October and recieve a huge amount. Will the federal government take all the money or I'll be paying the monthly payments as doing now?

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As long as you continue to make the monthly payments as per the installment payment agreement with the IRS, they won’t include you in the ‘collection status’. If you don’t come under the collection status, they don’t grab the money from you.

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Last Updated on: Fri, 8 Jun 2018

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