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What you should know about Tax Levy on Bank Account

  1. Form 668-W requires the turnover of wages, salary, and other income earned by the taxpayer.
  2. The form is used to collect money owed by the taxpayer through a notice of levy.
  3. Exempt amounts from the levy must be claimed by completing the Statement of Exemptions and Filing Status.

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How to prepare Tax Levy on Bank Account

Open the Form 668-W(c)(DO)
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About Form 668-W(c)(DO)

Form 668-W(c)(DO) is a notice of levy on wages, salary, and other income. This form is used by the Internal Revenue Service (IRS) to initiate a wage garnishment to collect outstanding tax debts. It is typically sent to an employer to inform them that they are required by law to withhold a certain percentage of an employees pay and send it directly to the IRS until the tax debt is satisfied. This form is needed by the IRS to collect unpaid taxes from individuals who have failed to pay their tax liabilities. It is also necessary for employers who receive this notice to comply with the wage garnishment order and withhold the specified amount from their employees paychecks until the debt is paid in full. The purpose of this form is to ensure that taxpayers fulfill their obligation to pay taxes owed and to protect the governments interest in collecting unpaid taxes.

People also ask about Tax Levy on Bank Account

What is Form 668-W used for?
Form 668-W is used to levy wages, salary, and other income to collect unpaid balances owed by taxpayers.
How long does the levy remain in effect?
The levy remains in effect until a release of levy is sent by the IRS.
Can a taxpayer claim exemptions from the levy?
Yes, the taxpayer can claim exemptions by completing the Statement of Exemptions and Filing Status on Parts 3, 4, and 5 of the form.

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