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