QUESTION

If my employer gave me a levy notice, can they take all my tips that I get as a waitress and leave me without any income?

Asked on Sep 07th, 2013 on Taxation - New York
More details to this question:
I was given a levy notice and my employer told me I had to sign a paper to withhold my paychecks. Except I usually don't have any money left in my checks after all the deductions and my medical insurance. So the next day, they told me to give them all my tips. And I have no money at all now. It's bad, I called IRS and they said that they couldn't help me because my employer had replied to them saying "that I had no disposable income" and because of their reply the IRS had dropped their claim and sent it to collection. When I called my manager, he said they only follow coorporate orders and they didn't know anything about the IRS dropping the case and sending it to collection. My manager said it was my problem and I needed to call corporate on Monday. Until then they are keeping my tips and there's nothing I can do about it. I'm running out of cash, can you give me some advice on what to do next. Thank you.
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3 ANSWERS

You should be able to notify the sheriff's office that you are claiming exemptions allowed under the statute. They may have a form that you can use.
Answered on Oct 21st, 2013 at 2:53 AM

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Probate Attorney serving St. Louis, MO at Edward L. Armstrong, P.C.
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That "levy" should only be good for any money due at the time it was served on your employer. You need to get a tax attorney to help you get your employer to release the hold they have put on your tips.
Answered on Sep 20th, 2013 at 2:50 PM

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Kenneth Steven Pelsinger
You need to speak with a Accountant or Attorney so that you are protected, the IRS has the power to take 90% of your income. In addition there very important time frames to respond to them.
Answered on Sep 10th, 2013 at 4:56 AM

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