You do have a big problem if if you do owe the IRS 18000 dollars and more because as long the amount is NOT paid the interest and penalties will continue to be added to the original amount owed and continue to increase the amount that was owed when this problem started each day of the year until it is settled with the IRS.
Go to the IRS gov website and use the search box for Publication 594 (PDF), Understanding the Collection Process.
Also use the search box for Publication 17 for more information about penalty and interest charges that is contained in Chapter 1, Filing Information, of Publication 17, Your Federal Income Tax.
Use Publication 1494, Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income--- Forms 668-W(c) and 668-W(c)(DO), to determine the amount of earned income exempt from levy.
*These amounts are indexed annually for inflation (these amounts are for calendar year 2007).
Go to the IRS gov web site and use the search box for Publication 1494 (Rev. 2009)
1. Tables for Figuring Amount Exempt from Levy on Wages, Salary, an d Other Income (Forms 668-W(C), 668-W(c)(DO) and 668-W(ICS)) Publication 1494, shown below, provides tables that show the amount of an individuals income that is exempt from a notice of levy used to collect delinquent tax in 2009. (Amounts are for each pay period.)
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