Louisiana Wage Garnishment Checklist Guide
Wage garnishment is a collection method the Louisiana Department of Revenue uses to recover unpaid state taxes directly from your paycheck. This enforcement action occurs after other collection efforts have failed to resolve the tax debt. It is essential to understand that garnishment continues until the debt is paid or an alternative arrangement is made with the state.
Ignoring a Louisiana wage garnishment notice or failing to respond to the state can result in larger portions of your wages being withheld, damage to your employment situation, and additional penalties. This checklist explains what wage garnishment means, why the state uses it, what to do if you receive notice, and what happens next in the collection process.
What This Issue Means
Wage garnishment is a legal process in which the Louisiana Department of Revenue orders your employer to withhold a portion of your paycheck and send it directly to the state to pay your tax debt. When you receive a wage garnishment notice, it means the state has determined you owe unpaid taxes and has decided to collect the debt through your wages rather than waiting for you to pay voluntarily. The notice informs both you and your employer of the garnishment order and specifies how much of your paycheck will be withheld with each pay period.
Why the State Issued This or Requires This
The Louisiana Department of Revenue typically issues a wage garnishment order when a taxpayer has an unpaid tax debt that remains unresolved after previous collection attempts.
Before the Department can issue a wage garnishment, the taxpayer must generally receive a notice of assessment, a demand for payment, and a final notice before levy or garnishment.
Louisiana provides taxpayers with notice and opportunity to respond, request a hearing, or enter into payment arrangements before enforced collection begins. Common triggers include unfiled tax returns, unpaid taxes owed on filed returns, or failure to respond to earlier notices or payment demands.
Wage garnishment is considered an enforcement tool; it is how the state collects taxes when other collection methods have not worked.
What Happens If This Is Ignored
If a Louisiana wage garnishment notice is ignored, your employer will follow the state's order and begin withholding the specified amount from your paycheck. Your employer is required by
law to comply with the garnishment order, so the withholding will continue regardless of whether you acknowledge the notice.
Ignoring the garnishment will not stop it. The state may also pursue additional collection methods, such as bank levies, property seizures, or the filing of a tax lien against your assets.
The longer the debt remains unresolved, the more penalties and interest may accumulate on top of the original amount owed.
What This Does NOT Mean
A wage garnishment notice does not mean you have lost your job or that your employment will
automatically be terminated. Under federal law (the Consumer Credit Protection Act) and
Louisiana law, employers are prohibited from discharging an employee because of a garnishment for any one indebtedness.
These protections apply to a single garnishment but may not protect against termination if multiple garnishments are in effect. A garnishment order does not mean the state has seized all of your assets or that a court judgment has been entered against you (garnishment is an administrative collection tool, not a court action).
It also does not mean there are no other options available; you may still be able to enter into a payment plan, request relief, or appeal, depending on your circumstances.
Understanding Louisiana Wage Garnishment Limits and
Exemptions
Louisiana law provides exemptions for wage garnishments. Under the Louisiana Code of Civil
Procedure, the first 75 percent of disposable earnings are generally exempt from seizure. This means that for most debts, only 25 percent of your disposable earnings can be garnished.
However, state tax garnishments may follow different procedures and use exemption tables that leave income available for basic living expenses based on filing status and number of dependents.
Specific income sources are protected from garnishment under federal and Louisiana law.
These typically include Social Security benefits, Supplemental Security Income, veterans' benefits, disability benefits, workers' compensation, unemployment benefits, child support, and retirement income (with some limitations). Taxpayers receiving primarily exempt income should notify the Louisiana Department of Revenue, and may be able to prevent or release a garnishment on exempt funds.
Understanding Your Appeal Rights and Statute of
Limitations
Louisiana taxpayers have the right to request an administrative hearing and to appeal adverse tax determinations. Taxpayers generally have 60 days from the date of an assessment to file a protest or request a hearing. You may appeal to the Louisiana Board of Tax Appeals, which provides an independent forum for resolving tax disputes. These due process protections are critical for ensuring the tax debt is valid and the garnishment is proper.
Louisiana generally has a three-year statute of limitations for assessing additional taxes from the date a return was filed or due, whichever is later. For collections, Louisiana typically has 10 years from the date of assessment to collect tax debts (though this can be extended under certain circumstances, such as installment agreements or bankruptcy). If the statute of limitations has expired, the debt may not be collectible. Understanding these time limitations is essential when evaluating the validity of old tax debts subject to garnishment.
Checklist: What to Do After Receiving a Louisiana Wage
Garnishment Notice
Step 1: Read the Entire Wage Garnishment Notice Carefully
Look for the amount being garnished, the effective date, the tax periods involved, and the name of the Louisiana Department of Revenue contact person listed. Note any deadlines for requesting a hearing or providing additional information. Locate your tax account number or notice reference number on the garnishment notice; you will need this number for all future communication with the state.
Step 2: Verify Your Personal Information and the Debt Amount
Confirm that your name, address, Social Security number, and employer information on the notice are correct. Notify the state immediately if any information is wrong. Verify that the tax debt listed is accurate and that you actually owe the amount claimed. If you believe the amount is incorrect or the statute of limitations has expired, you may have grounds to dispute the garnishment.
Step 3: Understand Your 60-Day Protest and Appeal Rights
If you disagree with the assessment or believe the garnishment is improper, you generally have
60 days from the date of the assessment to file a protest or request an administrative hearing.
Contact the Louisiana Department of Revenue immediately to preserve your appeal rights. If necessary, you may appeal to the Louisiana Board of Tax Appeals. Missing the 60-day deadline may limit your options.
Step 4: Check Your Pay Stub and Identify Exempt Income
Confirm that the garnishment amount matches what the notice specifies and that it does not exceed Louisiana's exemption limits (generally, 75 percent of disposable earnings are exempt).
If you receive primarily exempt income such as Social Security, Supplemental Security Income,
veterans' benefits, disability benefits, or other protected income, notify the Louisiana
Department of Revenue immediately and provide documentation showing the source of your income.
Step 5: Contact the Louisiana Department of Revenue
Contact the Collections Division at (855) 307-3893 (toll-free) or visit revenue.louisiana.gov for assistance. Use the phone number or mailing address listed on the garnishment notice if different. Ask what your current balance is, whether interest and penalties are still accruing, whether the statute of limitations has expired, and what options are available to resolve the debt. Request a detailed accounting of the tax debt showing the original tax, penalties, interest, and payments received.
Step 6: Ask About Payment Plan and Hardship Relief Options
Inquire whether the state will accept an installment agreement instead of wage garnishment.
Provide information about your income and monthly expenses if requested. Ask whether your situation qualifies for any temporary reduction in the garnishment amount or other relief options.
If you filed a joint return and the tax debt resulted from your spouse's or former spouse's actions, ask about innocent spouse relief provisions that may relieve you of liability.
Step 7: Request Written Confirmation of Any Arrangement
If the state offers a payment plan or alternative, ask for written documentation outlining the terms. Send a follow-up letter to the Louisiana Department of Revenue (certified mail, return receipt requested) summarizing what was discussed and any agreement reached. Mailing address: Louisiana Department of Revenue, P.O. Box 201, Baton Rouge, LA 70821-0201.
Step 8: Gather Documentation Related to Your Tax Debt
Collect any prior tax notices, correspondence from the Louisiana Department of Revenue, and records of any payments you have already made toward this debt. Organize documents showing the source of your income, especially if you receive exempt income. Keep all correspondence, including every notice, letter, email, and pay stub related to the garnishment for your records.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 9: Monitor Your Paychecks and Account Status
Continue to check each paycheck to confirm the garnishment amount is correct and does not exceed Louisiana's exemption limits. Contact the Louisiana Department of Revenue periodically to verify your account balance and confirm when the debt will be fully paid. Once the debt is paid, contact the state to confirm the garnishment has been released; do not assume it will stop automatically.
What Happens After This Is Completed
After you contact the Louisiana Department of Revenue and provide information about your situation, the state will review your case. If you reach an agreement for a payment plan, the state typically issues written confirmation and may release the wage garnishment order or adjust it based on the plan.
The state will then send notice to your employer, instructing them to modify or stop the garnishment once an arrangement is in place. If you file a timely protest or appeal, the state will schedule a hearing and provide information about the appeals process. If no alternative arrangement is made, the wage garnishment will continue until the full tax debt is paid.
Common Mistakes to Avoid
Ignoring the notice and hoping the garnishment will go away will not stop it. The state will continue withholding from your paycheck and may add penalties and interest. Missing the
60-day deadline to protest or request a hearing may limit your options and make the assessment final. Not verifying the accuracy of the debt or the statute of limitations can result in paying debts you may not legally owe.
Not informing the state about exempt income (Social Security, disability, veterans' benefits)
means you may lose protections you are entitled to under the law. Providing incomplete information when the state requests financial details to consider a payment plan may delay resolution. Changing employers without notifying the Louisiana Department of Revenue can cause the garnishment to continue improperly or additional collection actions.
Assuming the garnishment stops automatically once the debt is paid is a mistake; contact the state to confirm the garnishment has been released.
Frequently Asked Questions
How much of my paycheck can Louisiana garnish?
Louisiana law generally exempts the first 75 percent of disposable earnings from garnishment, leaving up to 25 percent subject to garnishment. However, state tax garnishments may use exemption tables based on filing status and number of dependents, leaving income available for basic living expenses. Contact the Collections Division at (855) 307-3893 to confirm the calculation for your situation.
Can my employer fire me because of a wage garnishment in Louisiana?
No. Under federal law (the Consumer Credit Protection Act) and Louisiana law, employers are prohibited from discharging an employee because of a garnishment for any one indebtedness.
However, multiple garnishments may not be fully protected.
Can I get the garnishment released if I set up a payment plan?
Yes. If you establish a valid payment plan with the Louisiana Department of Revenue, the state may release the wage garnishment or modify it. Contact the Collections Division at (855)
307-3893 to discuss this option.
What if I receive Social Security or disability benefits?
Social Security benefits, Supplemental Security Income, veterans' benefits, disability benefits, and specific other income sources are generally exempt from garnishment. Notify the Louisiana
Department of Revenue immediately and provide documentation showing the source of your income to request the release of the garnishment on exempt funds.
Can I appeal the garnishment?
Yes. Louisiana taxpayers have the right to request an administrative hearing and appeal adverse determinations. You generally have 60 days from the date of an assessment to file a protest. You may appeal to the Louisiana Board of Tax Appeals. Contact the Collections Division at (855) 307-3893 immediately to preserve your appeal rights.
What if the tax debt is ancient?
Louisiana generally has a three-year statute of limitations for assessments and a 10-year statute of limitations for collections. If the statute of limitations has expired, the debt may not be collectible. Request a detailed accounting of the debt and consult with a tax professional if you believe the debt is time-barred.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement and are unsure how to respond, our team can help you understand your options and next steps.
We help with:
20+ years experience • Same-day reviews available
