Received a Form 668 W? What Are My Next Steps?
Did you recently receive a Form 668 W? This form is issued by the IRS when they plan to levy an employee’s wages, including salary, commissions, and bonuses. Here’s what both employers and employees should do next when facing an IRS wage levy.
Next Steps for Employers
Employers receive a copy of Form 668 W when an employee has failed to respond to the IRS regarding an outstanding debt. Typically, the taxpayer has a full pay period, up to 10 days, before you must start sending a portion of the employee’s wages to the IRS. Taking action immediately is crucial.
- Provide Information to Your Employee: Give your employee parts 2, 3, 4, and 5 of the form. Request that they sign the Statement of Exemptions and Filing Status and return it to you within three days.
- Calculate Net Pay: Determine the net pay minus exemptions, and send this along with part 3 of the wage levy to the IRS before the upcoming payroll period. Use IRS Publication 1494 for guidance on calculating exemptions.
- Notify Relevant Departments: Inform your Human Resources department or third-party payroll service about the levy as soon as possible. As an employer, you are required to comply with the wage levy promptly; failure to do so could make you liable for the debt plus additional penalties.
- Understand Employee Rights: Be aware that it is against federal law to take adverse action against the employee, such as termination, when a levy is issued. The wage levy will remain in effect until the debt is paid or the IRS notifies you that it has been released.
Next Steps for Employees
If you’re an employee facing a wage levy, this is one of the last steps in the process to repay the IRS. If your employer has received Form 668 W, it typically follows a Notice and Demand for Payment and a Final Notice of Intent to Levy. Ignoring these requests may lead to the issuance of Form 668 W.
- Complete Required Forms: Fill out the Statement of Exemptions and Filing Status provided by your employer. Include details about your filing status, number of dependents, and pay period. This will help determine how much of your wages will be sent to the IRS each pay period.
- Consider Financial Hardship: If the levy creates a financial hardship, it’s essential to challenge the levy actions. Explore your options to address both the levy and your overall strategy for handling back-tax debts.
Get Tax Debt Help
Navigating an IRS wage garnishment levy or any IRS collection action can be complex. Whether you’re an employer seeking guidance on submitting documentation correctly or an employee worried about your financial situation, LA-Twins is here to help you enhance leads for tax relief.
Contact us by filling out the form at la-twins.com/order to explore your options for addressing your delinquent tax liabilities. We are a local, family-owned company, and our experienced team understands how the IRS operates. For over 40 years, we’ve been assisting clients just like you, providing straightforward advice without empty promises.
