IRS and State wage garnishments are a very powerful tool used by taxing authorities to force collection of taxes they allege you owe by taking money each week or month from your paycheck.

Federal Tax Liens are public records that indicate you owe the IRS various taxes. They are filed with the County Clerk in the county from which you or your business operates.

Because they are public records they will show up on your credit report. This often makes it difficult and sometimes even impossible for a taxpayer to obtain any financing, even for an automobile or a home.

In addition, Federal Tax Liens can tie up your personal property and real estate. Once a Federal Tax Lien is filed against your property, you cannot sell or transfer the property without having the lien removed so that you can transfer a clear title.

Often, taxpayers find themselves in a no-win situation where they have property against which they would like to borrow, however, due to the Federal Tax Lien, they cannot use it as collateral secure a loan.

Once a tax wage garnishment is filed - even if you own and control the business - your employer is required to collect a significant portion of your pay and forward it to the IRS or other taxing authorities.

• Loss of a significant portion of your regular income -- money that you need to live and pay your bills will instead be paid by your employer directly to the IRS
• Your esteem in the eyes of your employer and fellow employees may be diminished.

Wage garnishments typically stay in effect until the IRS is paid in full or until the IRS agrees to release the garnishment.