Don't freak out... The Form 668-A Notice of Levy is sent by the IRS to collect back taxes through an account receivables or bank, freezing the funds held in that account. But it's not permanent! It is just a one-time levy, not a continuous levy. The Form 668-W Notice of Levy is a continuous levy or garnishment placed usually on your wages. Both the 668-A and 668-W levies can be negotiated and released. Don't lose hope.

Why Does the IRS Issue a Levy on My Paycheck?

So, why does the IRS suddenly step in and garnish your paycheck? It's actually their go-to move when back taxes go unpaid for too long. A wage levy—or garnishment—is the IRS's way of collecting tax debt directly from your source of income, often after repeated notices or attempts to resolve the debt have gone unanswered.

Unlike seizing your car or home off the bat, the IRS usually resorts to tapping your wages as a first step when they need to get your attention. Once your employer receives a wage levy (like Form 668-W), they're legally required to withhold a chunk of your pay and send it straight to the IRS, not to you. It’s not negotiable on their end.

If you see this happening, don’t panic—getting professional help is key. Whether the levy is accurate or not, quick action can sometimes stop or release a wage garnishment, or at least get you on the path to resolution.

Businesses and Banks Are Confused by the 668-A Levy.

Businesses (and to a lesser extent banks) who receive the form 668-A often freak out. "Is this permanent?" they ask. With the IRS potentially scrutinizing them, they don't want to screw it up. Tax professionals frequently have to clarify the rules of 668-A's with these businesses who are supposed to enforce them (or their legal department).

When the 668-A Could Be Continuous.

If you only do business with one client, 668-A's can be considered as continuous, but there's a lot of grey area in this unique situation. If you were our client, we would work to argue that it should be interpreted as a one-time levy. You and your accountant/tax attorney will then need to contact IRS and show that the garnishment is a "hardship" usually by giving full-financial disclosure through Form 433-F. If you aren't able to get it fully released, you might get the IRS to modify the garnishment and get it lowered. After speaking to the IRS, be sure to give them the human resources' fax number so a levy release or partial-levy release can be sent to your employer.

How Can You Get these Levies Released?

Accounts Receivable Levy (668-A)

If a client of yours receives the form 668-A to collect your back tax debt, the business is technically required to send any money currently owed to you at the time they receive the 668-A to the IRS. But if the company currently does not owe your business anything, then the levy is ineffective. The IRS will have to re-levy if they want to capture future money that the company owes to you. If you are out of luck and the levy is enforceable, you can also get this levy released by effective negotiation by you or your tax professional. Be sure to ask your accounts receivable for their fax number so a "levy release" can be sent to them!

Bank Levy (668-A)

Bank levies freeze the monies in your account currently. But they do not freeze future funds put in the account. In fact you can deposit funds the day of the levy and the new funds should be available to you. If you have had your bank levied, call the bank and get a fax number for a possible levy release and determine how much money has been frozen.

In Accounts Receivable and Bank Levies, you have 21 days before the funds go to the IRS. If you or your accountant/attorney effectively make your case to the IRS, your levy can be released partially or in full. Be sure to get a fax number for your client or bank so a levy release can be expediently sent to them and your funds released.

Wage levy (668-W)

As soon as you receive the 668-W Wage levy, be sure to call your human resources department to a) get their fax number and b) find out what the "cut-off" date is for getting the wage levy released. You and your accountant/tax attorney will then need to contact IRS and show that the garnishment is a "hardship" usually by giving full-financial disclosure through Form 433-F. If you aren't able to get it fully released, you might get the IRS to modify the garnishment and get it lowered. After speaking to the IRS, be sure to give them the human resources' fax number so a levy release or partial-levy release can be sent to your employer.

A few things to keep in mind about wage levies:

Wage levies are continuous. Unlike bank or accounts receivable levies, a wage levy doesn't just grab what's in your paycheck this week—it keeps going until your tax liability is fully paid off or the IRS agrees to release it.
There are several ways to get a wage garnishment released:
- If the levy was issued after the Collection Statute Expiration Date (CSED), it should be released.
- If releasing the levy allows you to pay the tax debt faster, the IRS may agree to it.
- Demonstrating financial hardship is a common and powerful route (hence the need for Form 433-F).
- Setting up a payment plan with the IRS can also satisfy the requirements for release.

Note: Requesting a levy release is not the same as having your debt forgiven. The IRS may pause or reduce the garnishment, but you'll still owe the underlying tax balance. The silver lining is that the IRS can work with you—often through an installment plan or other arrangement—to help you address what you owe without losing your entire paycheck.

If your situation is dire and you haven’t taken action yet, now’s the time to contact the IRS directly, or better yet, get help from a qualified tax professional. They know the ins and outs, and can help you make the right moves to get that wage levy released or at least minimized.

And if you're worried about extreme financial hardship for your family, make sure the IRS knows. You might qualify for additional relief if the garnishment is pushing you over the edge.

Pro tip: The sooner you address the levy, the more options you have. If your employer already has the 668-W, don’t wait—reach out for professional advice and get moving on a solution.

How Long Do Wage Garnishments Typically Last?

A wage garnishment (the 668-W) will stick around as long as there’s still an outstanding IRS balance—the levy keeps pulling from each paycheck until your tax debt, interest, and penalties are wiped out. It doesn’t just go away on its own.

That said, there are ways out. If you’re able to set up a payment plan with the IRS, they’ll usually release the garnishment as part of the agreement. Another option: if you can show that this levy creates a true financial “hardship” (think: you can’t pay basic bills), the IRS can reduce or even lift it temporarily. But you’ve got to be prepared to open your financial life with full disclosure—think pay stubs, expenses, and bank statements.

For most people, partnering with a tax professional is a smart move. They speak the IRS’s language and can often negotiate much better than going it alone.

What Is Your Employer Required to Do When They Get a 668-W Wage Levy?

When your employer receives Form 668-W from the IRS, they're not just sending it to their junk folder and hoping for the best—they’re legally on the hook to enforce that wage garnishment. If they ignore or mishandle the instructions, the IRS can actually hold your employer liable for the taxes you owe, and, just for fun, tack on a penalty that equals half the total tax due! For example, if you owe $5,000, your employer could be staring down the barrel of a $2,500 penalty plus the original tax bill. Ouch.

Once the 668-W hits their desk, here's what the employer should do:

Wait one complete pay period before starting the garnishment. (No need to panic about your very next check getting snatched completely out from under you.)
Provide you with the paperwork included in the IRS packet. You absolutely want to fill this out and return it within three days—otherwise, your take-home pay might take an even bigger hit than necessary.
Use your information from the returned forms to calculate the correct withholding amount from your wages.
Send the garnished amounts directly to the IRS as instructed.

In short: Employers have to cooperate with the IRS levy process or risk serious financial consequences. Make their job easier (and protect your wallet) by returning your forms ASAP.

How Does the IRS Decide How Much of My Wages to Garnish?

Once the 668-W wage levy hits your employer’s inbox, you’ll be wondering just how much of your paycheck the IRS can actually take. Here’s how it works: Instead of deciding what they get, the IRS figures out what you’re allowed to keep, using Publication 1494. This chart determines your "exempt amount" based on two things—your filing status and the number of dependents you claim.

The more dependents and the higher your standard deduction, the more you’re allowed to keep.
Single with no dependents? The IRS leaves you with a modest sum—just enough to cover bare necessities.
Married, kids, etc.? You’ll be able to keep a bit more, but don’t expect luxury.

For example, in 2023, a single filer with no dependents could be left with around $266 per week, while a married couple filing jointly with two dependents might see about $713 weekly stay in their pocket. Everything you make above your exempt amount heads straight to the IRS until your debt is settled or the levy is lifted.

Does Quitting My Job Stop the Wage Garnishment Process?

Leaving your job will temporarily pause the wage garnishment since there's no paycheck for the IRS to take a bite from. But don't celebrate just yet—this isn't a permanent fix. As soon as you get a new job and the IRS discovers your new employer, they'll issue a fresh wage levy (another Form 668-W) to redirect the garnishment. So, quitting may buy you a little time, but it doesn't remove the underlying tax debt or stop the process altogether. It's far more effective to work with your tax professional or attorney to resolve the debt directly with the IRS and pursue a formal release or modification of the wage levy.