How To Handle IRS Garnishment If You’re A Gig Worker Or Freelancer In South Carolina
- David Greene
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If you’re a gig worker or freelancer in South Carolina, you may be wondering how IRS garnishments can affect your income and what your options are if you find yourself facing one. IRS garnishments can be a somewhat intimidating and complicated situation, especially for independent contractors who don’t have an employer to advocate on their behalf. In this article, we’ll discuss…
- IRS garnishment for South Carolina freelancers works.
- Whether payment platforms, like Venmo or PayPal, can be targeted by the IRS.
- What steps you can take to manage or prevent garnishment as a freelancer.
Are 1099 Income Streams Subject To Garnishment By The IRS?
1099 income streams are absolutely subject to garnishment by the IRS. The IRS can issue a garnishment order against the income that would typically be paid to a contractor. When the IRS places a garnishment, it will notify the company or individual that issued the 1099, instructing them to send the payments directly to the IRS. This will continue until the debt owed is paid in full.
What Happens When The IRS Issues A Garnishment Order On A Contractor’s Income?
When the IRS issues a garnishment order, the affected party will receive a notice telling them to redirect 100% of the contractor’s income to the IRS. This will be done by the employer or payment platform that normally processes the payments. The garnishment will remain in place until the balance owed to the IRS is completely satisfied.
Can Payment Platforms Like Venmo, PayPal, And Upwork Be Targeted?
Payment platforms such as Venmo, PayPal, and Upwork can indeed be targeted for garnishment by the IRS. If you use these platforms to receive payment for your freelance work, the IRS can issue a levy to the platform, instructing them to withhold a portion or all of the funds that would otherwise go to you. This is an important point to keep in mind if you’re a gig worker who relies on these platforms for your income.
David Greene, founding attorney of The Greene Law Firm, P.A. in South Carolina, has helped countless freelancers and gig workers navigate the stress and confusion of IRS garnishments. With years of experience in tax law and IRS negotiations, David Greene understands the unique challenges faced by 1099 earners, especially when their income is at risk. He’s successfully helped independent contractors stop garnishments, set up manageable payment plans, and protect their livelihood.
If you're facing IRS pressure, don’t go it alone. Contact The Greene Law Firm, P.A. today for experienced, personalized guidance.
What Options Exist For Negotiating With The IRS If I’m Self-Employed?
As a freelancer or self-employed individual, you have fairly limited options for negotiating with the IRS in the case of garnishment. Your best option is often to pay the full amount due as soon as possible to stop the garnishment and avoid further interest or penalties.
If paying in full is not possible, you may be able to negotiate a payment plan with the IRS. Once you enter into an approved payment arrangement, the IRS will typically lift the garnishment, allowing you to continue working without the ongoing deduction.
What Records Should Gig Workers Keep To Help Defend Against IRS Action?
To protect yourself from IRS actions, it’s critical to maintain clear and accurate records of all your income and expenses. Freelancers and gig workers should keep:
- Copies of all 1099 forms issued to you by employers or clients.
- Proof of any payments you’ve made towards your estimated taxes.
- Receipts for business expenses or any other tax deductions you plan to claim.
Having these documents on hand will help you support your case if the IRS audits you or if there is a dispute over your tax liability.
Still Have Questions? Ready To Get Started?
For more information on IRS garnishment for South Carolina freelancers, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.
David Greene, founding attorney of The Greene Law Firm, P.A. in South Carolina, has helped countless freelancers and gig workers navigate the stress and confusion of IRS garnishments. With years of experience in tax law and IRS negotiations, David Greene understands the unique challenges faced by 1099 earners, especially when their income is at risk. He’s successfully helped independent contractors stop garnishments, set up manageable payment plans, and protect their livelihood.
If you're facing IRS pressure, don’t go it alone. Contact The Greene Law Firm, P.A. today for experienced, personalized guidance.