Denver Business Daily

Will the IRS automatically stop payroll deductions after I am paid in full.?

I am currently paying the irs for back taxes through a payroll deduction, my refund from this year will clear my balance. Do I need to contact my payroll department and/or the IRS to discontinue the deduction or will it stop automatically. The IRS didnt contact my employer I set it up, its not a garnishment its actually a installment plan that I am paying through a payroll deduction.

Public Comments

1. the same way the irs contacted your employer about your debt owed,is the same way they should let them know you no longer owe them anything.so,no you don't have to contact anyone at all,the irs should and will do it. well it may stop automatically,but i would just notify the payroll department just to be sure they don't take out any more money from your paychecks.i would also contact the irs to make sure they know not to deduct anymore also,i know they should know this,but sometimes they act like they don't.
2. Plan on 1-2 extra payments coming out of your paycheck. The IRS will then send you the money back via a check. If this happens, call the IRS and ask them to manually send a letter to the employer to turn off the payroll deductions. (You aren't supposed to have to do this, but it happens frequently.)