Introduction

r r

When it comes to the garnishment of pension checks by the Internal Revenue Service (IRS), the situation can vary significantly depending on the source of the pension and how it is paid. This article aims to provide a comprehensive guide to understanding whether, and under what circumstances, the IRS can garnish pension checks from various sources. We will also discuss how to protect your pension check from garnishment and the overall garnishment process.

r r

Can the IRS Garnish Your Pension Check?

r r

The ability of the IRS to garnish your pension check is highly dependent on the type of pension you receive, its source, and the law in your particular state.

r r

Pension Types and Their Eligibility for Garnishment

r r r Union Pension Plans: These are typically protected from garnishment under federal law.r Private Company Pension Plans: These can be subject to garnishment, but state laws often provide some level of protection.r State and City Pensions: These pensions generally offer some level of protection against garnishment, especially for low-income taxpayers.r r r

Methods of Payment Impact

r r

The method in which your pension is paid can also impact whether the IRS can garnish it.

r r r Direct Deposit: If your pension is directly deposited into your bank account, the IRS can garnish it.r Paper Checks: If your pension is received in paper checks, the IRS can also garnish them.r r r

How the IRS Can Garnish Your Pension Check

r r

The process of garnishing a pension check involves the IRS filing a lien with the appropriate local court. If the pension amount is deemed necessary to satisfy a tax debt, the court will issue an order allowing the IRS to garnish the funds. Here’s a step-by-step guide:

r r

Steps in the Garnishment Process

r r r IRS Investigation: The IRS investigates your tax liabilities and your financial situation.r Notification: You will receive a Notice of Your Rights Under the Federal Tax Lien Act and a Notice of Intent to Levy on Property or to Proceed by Levy and Sale of Property.r Lien Filing: The IRS files a lien with the appropriate court to secure the debt.r Court Hearing: You have the opportunity to challenge the lien in a court hearing.r Order for Garnishment: If the court rules in favor of the IRS, an order for garnishment will be issued.r r r

Protect Your Pension Check from Garnishment

r r

If you are at risk of having your pension check garnished, there are steps you can take to protect it. Here are some tips:

r r

Seek Professional Legal Advice

r r

A tax attorney or legal advisor can provide guidance on your specific situation and help you explore potential options to defend your pension.

r r

Contest the Lien in Court

r r

If a lien has been filed against you, you can contest it in court. It’s important to understand your rights and the legal process.

r r

Establish Nexus to Tax Liabilities

r r

It may be possible to argue that the pension has no direct connection to the tax liabilities if the pension is from a protected source.

r r

NCAL (Certain Exemptions)

r r

Under the National Childhood Vaccine Injury Act (NCVIA) and the Farmers Home Administration (FmHA) Debt Offset Act, certain pension sources are exempt from garnishment by the IRS.

r r

Conclusion

r r

While the IRS does have the authority to garnish pension checks under certain circumstances, the protections vary greatly based on the type of pension and location. By understanding these protections and taking proactive steps, you can better safeguard your pension from garnishment. If you find yourself at risk, consulting an attorney and seeking legal advice is highly recommended.