What Is IRS Form 668 and How Do You Stop an IRS Levy?

If you just opened the mail and saw IRS Form 668, you’re probably asking, “What is this and how do I make it stop?” In plain terms, Form 668 is the IRS’s tool to collect a tax debt directly from your wages, bank account, or other property through what’s called a levy. The form number changes depending on what the IRS is targeting (your bank account, paycheck, or other assets), but the purpose is always the same: to seize money and apply it toward your tax bill. 

The good news is you are not powerless: levies can often be paused, reduced, or released if you act quickly and choose the right strategy. This guide will walk you through what IRS Form 668 means, why you received it, and the steps you can take to protect your income and stop the IRS from taking more than it should.

What IRS Form 668 Means in Plain English

Form 668 is the IRS’s levy notice. It authorizes the government to collect funds from places that hold your money or pay you. There are several types of Form 668, each tied to a different kind of levy:

• Form 668-A: Directs a bank or other third party to freeze and send funds (bank levy). 
• Form 668-W: Sent to your employer to garnish wages, salary, or other income (wage levy). 
• Form 668-B: Used by revenue officers to seize certain property directly. 
• Form 668-D: Release of Levy, which instructs the bank or employer to stop the collection and return control to you. 

Many people confuse levies with liens. A lien (filed with Form 668-Y) is a public notice that the IRS has a claim on your property, but it does not actually take money. A levy does. When the IRS releases a lien, they use Form 668-Z.

Where IRS Form 668 Fits in the IRS Collection Timeline

Levies do not come out of the blue. Long before Form 668 lands in your hands, the IRS has already been sending a series of notices about your balance. The most serious of these is called the Final Notice of Intent to Levy, usually labeled as Letter 1058 or LT11. This is the IRS’s way of saying, “We are ready to take action unless you respond.”

That letter is more than just a warning. It also unlocks one of the most important rights you have as a taxpayer: the ability to request a Collection Due Process (CDP) hearing. By filing Form 12153 within 30 days of the date on the notice, you can have your case reviewed by the IRS Office of Appeals, an independent branch that looks at both sides before deciding whether the levy should move forward. Acting within that window usually pauses levy action, giving you time and breathing room to work out a solution.

If those 30 days pass without a response, you are not completely out of options. The IRS still allows what’s called an Equivalent Hearing for up to one year after the notice date. While this option does not preserve the same rights to go to Tax Court, it can still provide a valuable chance to have Appeals hear your side and consider alternatives.

What Happens Once a Levy Hits

Bank Levy

If the IRS levies your bank account, the bank freezes the money up to the levy amount. The bank must hold the funds for 21 days before sending them to the IRS. That waiting period gives you a chance to fix the situation before the money is gone.

Wage Levy

A wage levy is continuous. Your employer must withhold a portion of every paycheck until the IRS issues a release or the balance is paid. The IRS uses Publication 1494 tables to determine the amount you are allowed to keep, based on filing status and dependents.

Bank and Employer Obligations

Banks and employers are legally obligated to comply with levies. If they do not, they risk being held personally responsible for the funds, and in some cases may face additional penalties.

Your First 72 Hours After Receiving IRS Form 668

When a levy notice arrives, the most important thing is to act quickly. Here are the first steps to take:

1. Identify the type of levy. Is it a bank levy (668-A), wage levy (668-W), or something else? 
2. For a bank levy, use the 21-day hold period wisely. Contact the IRS right away to request a release or propose a resolution. 
3. For a wage levy, make sure your employer has accurate information about your dependents so you get the maximum exempt amount under Publication 1494. 
4. If you still have appeal rights, file Form 12153 for a CDP hearing within the 30-day deadline. 
5. Prepare financial information. Complete Form 433-A/433-F (for individuals) or Form 433-B (for businesses) to show your financial picture. 
6. If a revenue officer is involved, you may be able to request a quick review under the Collection Appeals Program using Form 9423.

How to Get a Levy Released

By law, the IRS cannot keep a levy in place forever. There are several situations where they are required to lift it, and knowing these can help you see a path forward.

The most straightforward is when the debt is fully paid or when the IRS determines that the tax is no longer legally collectible. In those cases, the reason for the levy disappears, and so does the levy itself.

Another common outcome comes from reaching an agreement with the IRS. If you qualify for an Installment Agreement, secure Currently Not Collectible status, or even negotiate an Offer in Compromise, the levy usually has to be released once the arrangement is in place.

Sometimes, the deciding factor is hardship. If the levy makes it impossible for you to cover basic living expenses—things like rent, groceries, or utilities—the law (specifically Internal Revenue Code §6343) requires the IRS to let go. This is why documenting your finances clearly can make such a difference.

Appeals can also play a powerful role. Through a Collection Due Process hearing or the Collection Appeals Program, taxpayers have successfully stopped levies and replaced them with more manageable solutions.

And finally, when the IRS does agree to lift a levy, it becomes official through paperwork. You, your bank, or your employer will receive Form 668-D, the Release of Levy. That document is your signal that the immediate crisis is over and that the money flow returns to normal.

What You Keep From Your Paycheck

By law, the IRS cannot keep a levy in place forever. There are several situations where they are required to lift it, and knowing these can help you see a path forward.

The most straightforward is when the debt is fully paid or when the IRS determines that the tax is no longer legally collectible. In those cases, the reason for the levy disappears, and so does the levy itself.

Another common outcome comes from reaching an agreement with the IRS. If you qualify for an Installment Agreement, secure Currently Not Collectible status, or even negotiate an Offer in Compromise, the levy usually has to be released once the arrangement is in place.

Sometimes, the deciding factor is hardship. If the levy makes it impossible for you to cover basic living expenses—things like rent, groceries, or utilities—the law (specifically Internal Revenue Code §6343) requires the IRS to let go. This is why documenting your finances clearly can make such a difference.

Appeals can also play a powerful role. Through a Collection Due Process hearing or the Collection Appeals Program, taxpayers have successfully stopped levies and replaced them with more manageable solutions.

And finally, when the IRS does agree to lift a levy, it becomes official through paperwork. You, your bank, or your employer will receive Form 668-D, the Release of Levy. That document is your signal that the immediate crisis is over and that the money flow returns to normal.

Levy vs. Lien: A Quick Contrast

• Lien: A public notice that the IRS has a legal claim on your property, but it does not seize money. Filed with Form 668-Y. Released with Form 668-Z. 
• Levy: The active collection tool that seizes your funds or property. Implemented through Form 668 notices.

Real-World Examples

• Maria’s Bank Levy: Maria’s checking account was frozen after a 668-A levy. She used the 21-day window to contact the IRS, prove financial hardship, and enter an installment agreement. The IRS issued Form 668-D, releasing her funds. 
• James’s Wage Levy: James’s employer received a 668-W. After completing his dependent information for Publication 1494, James requested a CDP hearing. He secured an installment plan, and the levy was released. 
• Business Owner’s Receivables Levy: A small business faced a 668-A levy against customer payments. By filing Form 9423 under the Collection Appeals Program, the owner was able to secure a short-term resolution and prevent payroll from being disrupted.

Legal Authority in Plain Language

• Internal Revenue Code §6331 authorizes the IRS to issue levies, including continuous wage levies. 
• Internal Revenue Code §6343 requires the IRS to release a levy when the debt is paid, becomes unenforceable, or when the levy creates economic hardship by leaving you unable to cover basic living expenses.

When to Seek Professional Help

While some taxpayers are able to resolve levies on their own, many situations benefit from professional guidance. If a levy threatens your ability to pay rent, cover household expenses, or keep your business running, it is wise to involve an experienced tax professional. A representative can quickly negotiate with the IRS, document your hardship, and request a same-day release when necessary.

Tax Crisis Institute has helped countless clients stop levies, negotiate realistic plans, and restore peace of mind. If you received IRS Form 668 or a Final Notice of Intent to Levy, contact us today for help.

Frequently Asked Questions

What is IRS Form 668?
IRS Form 668 is the official notice the IRS uses to tell a third party—such as your bank, your employer, or sometimes even your customers—that they must send money directly to the IRS to cover your unpaid taxes. It is commonly known as a levy notice. Unlike a lien, which simply places a claim on your property, a levy actively takes funds. Depending on the version of the form, the IRS may freeze your bank account (Form 668-A), garnish your wages (Form 668-W), or in rare cases seize other property (Form 668-B). If the IRS later agrees to stop collection, they send Form 668-D, which serves as the official Release of Levy.

How long does a bank levy last?
When your bank receives a levy (Form 668-A), it is required to freeze the money in your account up to the amount listed on the notice. The bank then holds those funds for 21 calendar days before sending them to the IRS. This waiting period is critical because it gives you a window of time to act—whether that means negotiating a payment plan, filing an appeal, or proving that the funds are exempt from levy (such as certain Social Security or retirement payments). If you resolve the issue within the 21 days, the IRS can issue Form 668-D to your bank, releasing the funds back to you. If no action is taken, the bank must forward the money to the IRS once the 21 days expire.

How long does a wage levy last?
A wage levy (Form 668-W) works differently from a bank levy. Instead of freezing money once, it is continuous. That means each paycheck you receive will be partially withheld and sent to the IRS until one of three things happens: the balance is paid in full, the IRS agrees to release the levy, or the collection statute on your tax debt expires. Because wage levies continue indefinitely, they can create serious long-term financial strain if left unresolved. The good news is that once you secure an Installment Agreement, prove economic hardship, or resolve the tax debt another way, the IRS typically lifts the levy quickly.

How much of my paycheck is exempt from a wage levy?
The IRS does not take your entire paycheck. They are required to leave you with at least a minimum exempt amount that covers basic living expenses. This amount is calculated using IRS Publication 1494, which includes tables based on your filing status (single, married, head of household) and the number of dependents you claim. For example, someone who is single with no dependents will be left with far less than someone who is married with three dependents. To make sure you get the correct exempt amount, your employer will usually ask you to fill out a statement of dependents. If you fail to respond, the IRS defaults to the lowest possible exemption, which can leave you with very little take-home pay.

How do I get a levy released?
There are several paths to having an IRS levy lifted, and the right one depends on your situation. The most straightforward is paying the balance in full, which immediately removes the levy. If that is not possible, you can enter into an Installment Agreement, qualify for Currently Not Collectible status, or submit an Offer in Compromise if you meet eligibility requirements. Another option is proving that the levy is causing economic hardship by preventing you from covering reasonable living expenses. In that case, Internal Revenue Code §6343 requires the IRS to release it. Finally, you can challenge the levy through a Collection Due Process (CDP) hearing or the Collection Appeals Program (CAP), which can result in a release or modification of the levy. Once the IRS agrees, they issue Form 668-D, Release of Levy, to your bank, employer, or other third party so they stop sending funds.