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You might think that having a full-time job with taxes withheld means you’re in the clear with the IRS. But that’s not always the case.
Many W-2 employees still end up owing taxes—sometimes from under-withholding, a side hustle, or unpaid taxes from past years. If left unresolved, the IRS can take serious action, including:
Wage garnishment
Intercepting your tax refund
Issuing levies on your bank accounts
But here’s the good news: You have options, and you don’t have to face the IRS alone.
At Priority Tax Relief, we help full-time workers stop collections, set up payment plans, and apply for programs that provide real relief.
Why Do W-2 Employees Still Owe the IRS?
Even if taxes are withheld from your paycheck, you may still owe if:
Your withholdings are too low
You earn extra income from freelance work or tips
You didn’t file or fully pay taxes in previous years
You had life changes that impacted your taxes (e.g., divorce, dependents, job change)
And once you owe, the IRS adds penalties and interest that can grow quickly.
How We Help Full-Time Employees
We work with employed taxpayers to resolve IRS debt safely and discreetly. Our services include:
Wage Garnishment Release – Stop IRS wage levies
Installment Agreements – Affordable monthly payment plans
Offer in Compromise (OIC) – Settle tax debt for less
Currently Not Collectible (CNC) Status – Temporarily pause IRS collections
Penalty Abatement – Remove penalties for reasonable cause
Don’t Let the IRS Touch Your Paycheck
If you’re working full time but still owe taxes, don’t wait for the IRS to act. Every paycheck counts—and we’ll help you protect it.
📞 Book your free consultation today and get peace of mind about your paycheck.
Frequently Asked Questions: W-2 Workers Who Owe the IRS
Why do I still owe taxes if my employer withholds them?
If your W-4 form was filled out incorrectly, or if you have other income (like from a side hustle), your withholding may not cover your full tax liability.
Can the IRS garnish my paycheck without notice?
The IRS must send multiple notices before garnishing your wages. If you’ve received a Final Notice of Intent to Levy, action is urgent.
Can I get on a payment plan with the IRS?
Yes. We help full-time workers apply for Installment Agreements based on their income and living expenses. Many qualify for low monthly payments.
What is Currently Not Collectible (CNC) status?
CNC means the IRS recognizes you can’t pay right now. Collections pause, giving you time to recover financially.
Can I settle my IRS debt for less than I owe?
Possibly. The Offer in Compromise program allows qualifying taxpayers to settle debt for less. Your income, assets, and expenses are considered.
Will this affect my credit score?
The IRS doesn’t report to credit bureaus, but a tax lien can appear on public records. Solving the issue quickly helps prevent long-term damage.
