What Is Notice of Levy Form 668-A?

IRS Form 668-A is a Notice of Levy.

Internal Revenue Service (IRS) Form 668-A is issued by the IRS to notify taxpayers that a levy is occurring. According to CPA Joe Mastriano, the Notice of Levy is not technically a legal proceeding but an administrative procedure used to collect taxes owed.

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Purpose

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Banks and other holders of property belonging to taxpayers are sent a copy of IRS Form 668-W in order to intercept property belonging to a taxpayer. The taxpayer is sent a copy of IRS Form 668-A, Notice of Levy. The main purpose of these forms is to collect an outstanding tax obligation. The third-party recipient of the notice has 21 days from the date of receipt to send the taxpayer's money or property to the IRS.

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Features

A levy using IRS Form 668-A is a one-time occurrence, and no court order is required.

Procedure

In practice, IRS Form 668-A is usually sent to a taxpayer 30 days prior to actual levy on an account. However, it is direct notice that the IRS intends to levy funds owed by the taxpayer to the IRS.

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Exemptions

Taxpayers are entitled to claim exemptions from a tax levy, including assets such as school textbooks, clothing, 85 percent of unemployment benefits and, in most cases, property belonging to a business.

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