Define Wage Release Agreement

A "wage release agreement" is an agreement that releases a taxpayer's wages from garnishment by the IRS. This is a generic term only, and may be applied to one of several situations.

Role of IRS

• The IRS is a United States government tax collection agency that provides information, forms and assistance to U.S. taxpayers. Negotiated agreements made with taxpayers to release seized and garnished wages are examples of wage release agreements.

Before Wage Garnishment

• If a person owes the IRS back taxes, the IRS can arrange to help that person make payment arrangements. The letters and notices that the IRS sends usually contain relevant information, including a case number and contact information. If a taxpayer owes back taxes, the IRS may send them a notice about wage garnishment.

After Wage Garnishment

• After taxes have been paid, the IRS may be able to help the taxpayer get their garnished wages released under a wage release agreement. The form might be defined or referred to by the IRS with a number or under a distinctly different name. The IRS or a tax attorney typically has more information about wage release forms, including how to create them.