Can the IRS garnish my entire paycheck?

The IRS cannot legally take your entire paycheck, but it can garnish everything above the protected exempt amount determined by federal wage levy tables. That exempt amount is often much lower than most people expect and does not reflect real living costs. As a result, many taxpayers feel like nearly their entire paycheck is being taken, even though a small portion must legally remain protected.

Is a wage levy the same as wage garnishment?

Yes. A wage levy is the IRS's legal term for wage garnishment. Outside of tax law, most people use the term 'wage garnishment,' while the IRS uses 'levy.' Both describe the same action: the IRS requiring an employer to withhold wages and send them directly to the government to satisfy an unpaid federal tax debt.

How fast can an IRS wage garnishment begin?

Once the IRS issues a Final Notice of Intent to Levy (such as Letter 1058 or LT11) and the required response period has expired, wage garnishment can begin promptly. In many cases, withholding starts with the next pay cycle after your employer receives the levy notice. There is often little warning once that point is reached.

Will my employer be notified about the garnishment?

Yes. IRS wage garnishment is enforced by sending a levy notice directly to your employer. Employers are legally required to comply with IRS instructions and withhold wages accordingly. While employers are not told personal details about your tax situation, they will know that a federal wage levy is in place and must continue withholding until the IRS releases it.

Does this calculator include state garnishments or other withholdings?

No. This calculator estimates only the federal IRS wage garnishment. It does not include state tax levies, garnishments by creditors, child support, alimony, or other payroll deductions. Actual take-home pay may be lower if additional withholdings apply, but the calculator focuses solely on how the IRS calculates federal wage levy exemptions.

What if I have more than one job?

The IRS can issue wage levies to multiple employers simultaneously. Each employer may be required to withhold wages based on IRS instructions. This can significantly increase financial strain, especially if the protected exempt amount is applied separately. Understanding this risk early can help taxpayers assess urgency and potential resolution options.

Is this calculator a substitute for professional advice?

No. This calculator is a decision-support tool, not legal or tax advice. It provides estimates based on published IRS wage levy rules and exemption tables. Actual outcomes depend on IRS enforcement status, compliance history, and financial disclosures. Reviewing results with a qualified tax professional or tax resolution specialist can help clarify realistic next steps.

Trust Fund Recovery Penalty (TFRP) Risk Assessment

See If the Internal Revenue Service Can Hold You Personally Liable for Unpaid Payroll Taxes

Unpaid payroll taxes do not always stay with the business. When the Internal Revenue Service determines that an individual was a responsible party, it can assess the Trust Fund Recovery Penalty (TFRP) and hold that person personally liable — even when the business is an LLC or corporation.

This assessment makes you personally responsible for employee payroll withholdings that the business failed to remit. These amounts include withheld federal income taxes, Social Security taxes, Medicare taxes, and other trust fund taxes owed to the United States on wages paid.

Use this risk assessment to estimate your potential personal exposure related to unpaid payroll and employment taxes before enforcement escalates.

What Is the Trust Fund Recovery Penalty?

The Trust Fund Recovery Penalty allows the IRS to collect unpaid employment taxes directly from responsible individuals, not just the business. It applies to federal income tax withheld from employees, as well as the employee portions of Social Security, Medicare, and certain railroad retirement taxes, which are considered funds held in trust for the government. When these withheld taxes are used for operating expenses instead of being deposited as required, the IRS treats it as a misuse of trust funds and imposes personal liability.

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Why the TFRP Creates Severe Personal Exposure

Once assessed, the Trust Fund Recovery Penalty becomes your personal tax debt, separate from the business.

The IRS may use the same enforcement tools applied to individual income tax liabilities, including the following:

Wage garnishments and bank levies

Federal tax liens on personal assets

Passport revocation and refund offsets

Business structure offers no protection

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Who the IRS Targets for TFRP Assessment

The IRS does not rely solely on job titles. It evaluates authority, knowledge, and conduct when identifying responsible persons.

Who the IRS May Hold Responsible

Control over business finances or payments

Authority to decide which bills were paid

Leadership or ownership roles involving finances

Knowledge of unpaid payroll tax obligations

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How the TFRP Risk Assessment Works

This assessment reflects IRS standards described in Publication 5 and Circular E.

Aggressive collection actions are paused

Financial pressure may ease immediately

You avoid being forced into unaffordable payment plans

You gain breathing room to address longer-term solutions

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When TFRP Investigations Typically Begin

The IRS most often initiates TFRP investigations when:

A business cannot make prompt payment of employment taxes

The business closes or becomes insolvent

Entity-level collection efforts stall

A revenue officer suspects willful nonpayment

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How the IRS Builds a TFRP Case

How the IRS Assesses the Trust Fund Recovery Penalty

Investigation of financial authority

Interviews to determine responsibility

Proposed assessment with response window

Final assessment and collections

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Request a Confidential TFRP Review

If payroll taxes are unpaid and you have any financial authority, waiting is not a strategy.

A focused review can help:

Confirm actual personal exposure

Identify whether an investigation has begun

Prepare for IRS interviews

Preserve defenses before assessment

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Trust Fund Recovery Penalty (TFRP) Risk Assessment

Trust Fund Recovery Penalty Risk Assessment

The assessment evaluates:

Then it estimates:

Step 1 — Eligibility

Step 2 — Payment Control

Step 3 — Authority & Role

Step 4 — IRS Interview (Form 4180)

This Calculator May Not Apply

Your TFRP Result

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What You Entered

What Is the Trust Fund Recovery Penalty?