Massachusetts Wage Garnishment Checklist
Understanding State Tax Enforcement
Introduction
State wage garnishment is a legal collection tool that Massachusetts uses when a taxpayer has unpaid state tax debt and has not responded to previous notices or payment arrangements. The
Massachusetts Department of Revenue can order your employer to withhold a portion of your wages and send that money directly to the state. This action typically occurs after the DOR has sent multiple notices and attempted other collection methods. Understanding what wage garnishment is, how it works, and what steps follow can help you regain control of the situation and potentially stop or reduce the garnishment.
What This Issue Means
A wage garnishment order from Massachusetts means the state has legally directed your employer to deduct a specific amount from your paycheck each pay period and send it to the
Department of Revenue. This order is issued as part of state tax collection and represents a serious enforcement action. The garnishment continues until the underlying tax debt, penalties, and interest are paid in full or until you work out a different payment arrangement with the state.
Why the State Issued This or Requires This
Massachusetts issues wage garnishment orders when a taxpayer has failed to pay state income tax or other state tax obligations and has not responded adequately to earlier collection notices.
The state typically attempts to resolve the debt through written notices and demand letters before moving to wage garnishment. State tax levies are not subject to federal law protections under the Consumer Credit Protection Act that apply to judgment creditors and private creditors, so that the garnishment amount may differ from ordinary creditor garnishments.
What Happens If This Is Ignored
If you receive a wage garnishment order and do not take action, the garnishment will continue with each paycheck until the debt is fully paid or resolved. Your employer will continue to withhold the ordered amount after mandatory deductions, meaning your take-home pay will remain reduced. In some cases, the state may pursue additional collection actions such as bank account levies, tax liens, or license suspensions if the underlying tax debt remains unpaid.
Step-by-Step Checklist: What to Do After Receiving a
Wage Garnishment Notice
Step 1: Read the Entire Garnishment Notice Carefully
Review the notice to identify the tax year or years the debt relates to, the total amount owed, including penalties and interest rates, any deadline mentioned, and the DOR office contact information.
Step 2: Verify the Debt Amount Is Correct
Compare the amount stated in the garnishment notice to any previous notices you received from the state. Check your personal tax records to confirm the liability and note any questions about how the amount was calculated.
Step 3: Contact the Massachusetts Department of Revenue
Call the DOR Contact Center at 617-887-6367 for debts of $10,000 or less, or the DOR
Collections Bureau at 617-887-6400 for debts over $10,000. Provide your name, Social Security number, and tax year or years in question when you call.
Step 4: Request a Copy of Your Complete Tax Record from the DOR
Ask what documents the state has on file related to your debt and request details about any previous notices you may have missed. Ask how interest and penalties were calculated so you understand the full amount owed.
Step 5: Review Your Paycheck Stubs After Garnishment Begins
Check that your employer is withholding only the amount required by the state after mandatory deductions, such as payroll taxes, and keep records of all garnishment deductions. Note the dates and amounts of each deduction for your personal records and future reference.
Step 6: Determine If You Have Grounds to Dispute the Debt
Review the tax return or returns in question and any correspondence with the state to identify errors or discrepancies. Document any tax payment amounts you made that may not have been credited to your account by the DOR.
Step 7: Explore Payment Arrangement Options with the DOR
Ask if the state offers an installment plan and inquire about hardship relief or temporary deferral options if you cannot pay in full. You may also ask about an Offer in Compromise if there is serious doubt about your ability to pay the full amount.
Step 8: Document Any Financial Hardship
Gather recent pay stubs showing reduced take-home pay and collect bills and essential expense records to demonstrate your financial situation. Note any medical expenses, job loss, or other financial challenges that affect your ability to pay.
Step 9: Request Written Confirmation of Any Agreement
If you reach an arrangement with the DOR, ask for it in writing and keep copies of all correspondence with the state. Ask when the garnishment will stop if a payment plan is approved, and confirm the terms in writing.
- Missing the deadline to respond: Some garnishment notices include response
- Not informing your employer of an agreement: If the state releases the garnishment
- Failing to make payments under an agreement: If you agree to an installment plan
- Sending payments without identifying information: Always include your Social
- Ignoring other collection notices: The state may send additional notices regarding
- Confusing state tax levies with other garnishments: State tax garnishments operate
- State tax notice review and response
- Penalty and interest reduction options
- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
Step 10: File Any Required State Tax Returns
Ensure you are current on all subsequent tax years and file any unfiled returns related to other tax years. Pay any new tax due on time to prevent additional collection actions from starting while you resolve the current debt.
What Happens After This Is Completed
After you contact the Massachusetts Department of Revenue and provide information about your situation, the state will review your case. The DOR may offer a payment plan, request additional documentation, or provide information about your account. If you enter into a payment arrangement, the state typically issues a notice confirming the agreement and describing when or how the garnishment will be modified.
How Massachusetts Wage Garnishment Differs from
Other Debts
Massachusetts wage garnishment for state tax debt operates under different rules than garnishments by judgment creditors or private creditors. Consumer debts are governed by
M.G.L. Chapter 246, Section 28, which protects 85 percent of your wages or disposable earnings, minus 50 times the Massachusetts minimum hourly wage. State tax levies use fixed exempt amounts based on your pay period and dependents under state regulations. Separate federal laws govern child support payments and federal student loans, each with its own garnishment formulas and limits.
Understanding Your Rights and Protections
While state tax garnishments are not subject to the same federal law limits as consumer debts, you still have rights under Massachusetts law. The state must provide notice before starting garnishment and allow you to claim exemptions for dependents. Certain income types remain exempt from garnishment, including Social Security benefits, state unemployment insurance,
and some retirement account funds. If you believe the garnishment creates undue hardship, you may apply for temporary hardship status through the DOR Collections Bureau.
Common Mistakes to Avoid deadlines, and failing to contact the state within the stated timeframe can result in continued garnishment without opportunity for negotiation or resolution. after you reach a payment plan, your employer may not automatically stop withholding, so verify with both parties that the garnishment has ended. with the DOR, missing payments can result in the plan being canceled and garnishment resuming or other collection actions restarting.
Security number and tax year when sending tax payment amounts so the state can properly credit them to your account and apply them to the correct liability. your debt, payment plan, or other collection actions while garnishment continues, and ignoring them can further complicate your situation. under different rules than those for child support, student loans, or judgment creditors, so advice for consumer debt may not apply to your situation.
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