IRS or FTB Wage Garnishment: A Hardship Release and a Modification Are Different Requests

Read the IRS wage-levy hardship guidance.

If tax withholding leaves you unable to cover basic living expenses, contact the issuing agency immediately. The IRS says a wage levy creating an immediate economic hardship must be released once it determines that the levy prevents basic, reasonable living expenses. FTB’s guidance instead describes possible modification of a garnishment for financial hardship. Those are different instructions. Ask about the actual wage order and financial problem rather than sending a general request to “remove the tax.”

Identify the wage order before asking for relief

Check the heading, issuer, employer copy, and tax periods. The IRS generally uses Form 668-W for wages and similar income; its employer levy instructions explain that wage levies generally continue until released. FTB distinguishes an Earnings Withholding Order for Taxes from non-tax collection orders and other orders to withhold. Do not apply a bank-levy waiting period to a wage levy or use a non-tax garnishment formula simply because the same agency collects both.

Bring the full order and the latest pay statement showing what payroll actually withheld. A proposed levy notice is different from an order already served on payroll. Tell counsel whether the next deduction is imminent and provide the contact details on the actual notice.

Show the shortfall in basic living expenses

The IRS usually needs financial information to decide whether the wage levy prevents basic, reasonable living expenses. Prepare current take-home pay, amounts withheld, housing and utilities, food, necessary transportation, dependents, and unusual necessary expenses with available support. Explain the shortfall using current figures. A spreadsheet saying only “hardship” does not show what you cannot pay or how the levy causes that problem.

Keep gross wages, ordinary payroll deductions, tax-levy withholding, and household expenses in separate lines. Explain whether another household income is available and whether a listed expense is monthly or one-time. These are practical preparation steps, not a promise that every listed expense will be accepted or that a particular payment amount will result.

Ask for the remedy the agency actually offers

For an IRS wage hardship, call the number on the levy or correspondence and explain the immediate problem. Have the employer’s fax number ready to help the agency act quickly. FTB also tells taxpayers to call the number on their letter and have the payroll or other payor’s fax number ready if it modifies the garnishment. FTB’s page says it cannot reduce the total balance due through this hardship modification. A request to reduce current withholding is not an agreement forgiving the debt.

An IRS release likewise does not erase the balance; arrangements to resolve it remain necessary and a levy may be reissued. The IRS levy-release page also describes appeal options if a release is denied. Ask promptly about the available review for the actual notice and circumstances rather than assuming a phone call suspends collection or any separate deadline.

Confirm where the release or modification was sent

Ask what written release or modification has been issued, which employer or payor received it, and when it was sent. Keep a copy and confirm payroll received the actual agency instruction. For an IRS levy paid in full, the employer guidance identifies Form 668-D as the release form. Do not tell payroll to stop withholding solely because you submitted a request or believe a payment resolved the balance.

If the next pay statement still shows the old deduction, compare the payroll processing date with the agency instruction and contact the agency or payroll about the discrepancy. Money already sent to the IRS can present a separate return-of-proceeds question, described on its release page; a prospective release should not be assumed to refund every earlier deduction.