Can IRS garnish Washington ESD unemployment benefits - getting nervous about tax debt

Oh no, that's exactly what I was afraid of. Do they notify you first or just start taking it?

They're supposed to send you notices first, but if you've been ignoring IRS letters they might have already gone through the process. Check if you have any unopened mail from them.

That's terrible! Were you able to do anything about it or did you just have to deal with it?

had to call and set up a payment plan but it took forever to get through to someone. maybe try that claimyr thing someone mentioned here before for getting through to agencies faster

How long does it take to set up a payment plan? I'm worried they'll start garnishing before I can get it sorted out.

It can take a few weeks to process, but once you submit the request they usually stop collection actions. You can do it online at IRS.gov or by phone, though getting through by phone is a nightmare.

Speaking of phone nightmares, I found this service called Claimyr that helps you get through to government agencies when they're swamped. Used it for Washington ESD issues but they work with other agencies too. Check out claimyr.com - they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

Great, that makes me feel so much better... 😒

While it's true they have broad collection powers, there are still options available. Don't give up before exploring payment plans or currently not collectible status if you're truly facing hardship.

This is really helpful, thank you! Where do I get Form 433-A and how complicated is it to fill out?

You can download it from IRS.gov. It's detailed but not impossible. You'll need to list all your monthly expenses and income. Be thorough and honest - include rent, utilities, food, transportation, minimum debt payments.

I filled out that form last year and it was a pain. Make sure you have all your documentation ready first - bank statements, bills, everything.

So there's literally nothing Washington ESD can do to help?

Nope, they're required by federal law to comply with IRS levies. It's completely out of their hands.

They're supposed to send several notices first - Notice of Intent to Levy is the final warning before they actually do it. If you've been getting IRS mail, don't ignore it.

oh crap i think i might have some unopened irs letters somewhere...

Washington ESD pays state unemployment insurance benefits, not federal. But IRS can still garnish state UI benefits for federal tax debt. The source of the payment doesn't matter to them.

Got it, thanks for clarifying. This whole system is so confusing.

You still have time! Call the IRS immediately at the number on that notice. Even if the 30-day appeal period has passed, you can still request a Collection Due Process hearing or set up a payment plan.

Don't panic but definitely act fast. The Final Notice means they can start levying at any time, but they usually give you a chance to work something out if you call.

If you can't get through to the IRS by phone (their lines are always jammed), that Claimyr service I mentioned earlier might help. They specialize in getting people connected to busy government phone lines.

How did you find out they were taking it? Did Washington ESD notify you or did you just notice when checking your payment?

I just noticed my payment was smaller than usual and had to call Washington ESD to ask what was going on. They told me about the garnishment but said I had to deal with DOR directly to stop it.

That gives me hope! How long did it take to get the payment plan approved?

About 2 weeks after I submitted everything online. The hardest part was actually getting through to talk to someone, but once I did they were pretty reasonable.

Same here - payment plan saved me from garnishment. The IRS would rather get steady payments than deal with the paperwork of garnishing benefits.

You should definitely file even if you owe money. The penalty for not filing is much worse than the penalty for not paying. File the return and then work out a payment plan for what you owe.

Thanks, I'll get on that. Better to deal with it now than let it get worse.

Yeah, I wish I had known this sooner. At least we're all learning together!

I've never heard of that. Where would I find one of these clinics?

Check the IRS website for a list of clinics in Washington state. Most are run by law schools or nonprofit organizations.

How much were they taking each week?

About $60 out of my $400 weekly payment. Could have been worse I guess, but it definitely made things tight.

Great news! Make sure you never miss a payment or they can restart the levy process without warning.

Congratulations on taking care of it! That's a huge relief I'm sure.

Good for you for being proactive! Too many people just ignore the problem until it's too late.

Awesome! See, I told you they'd work with you if you called. The IRS gets a bad rap but they're usually reasonable if you communicate with them.

Thanks! Definitely learned a lot myself through this whole ordeal.

Great advice! I started doing this after the first call and it's already helped clarify some confusion.

Yes! And get confirmation numbers for everything you submit online or by mail. The IRS loses paperwork more often than you'd think.