From the Hotline: Wage Garnishment Order
We received a notice from the IRS to garnish an employees’ wages, which the employee is appealing. Are we obligated to garnish his wages, or do we wait until his appeal is resolved?
Employers are legally required to comply with an IRS notice to garnish wages, regardless of pending appeal by the employee. The employee may work with the IRS to postpone the garnishment until the appeal is resolved, and the IRS may or may not agree depending upon the terms of the case. However, as the employer you are legally required to withhold and submit the garnishment unless or until you receive a Withdrawal of Garnishment Notice from the IRS.
As a final note, if the employee’s appeal is successful and the IRS agrees to stop the garnishment, the employee can request that the IRS fax you the notice in order to receive it quickly.