Have you received a Form 668 W recently? When the IRS intends to levy an employee’s wages, including salary, commissions, and bonuses, the IRS sends an employer Form 668 W. When the IRS issues a wage levy it is important to know what the next steps are for both the employer and employee. At Fresh Start Tax Resolution Services, a tax resolution company in Greensboro, NC we have outlined these steps below!
What To Do If You Have Received a Form 668 W
Employers’ Next Steps
When an employee fails to respond to the IRS about an outstanding debt, the employer will receive a copy of Form 668 W. Before the employer must begin sending a portion of the employee’s wages to the IRS, the taxpayer will typically have a full pay period, up to 10 days. It’s critical to act as soon as possible.
Parts 2, 3, 4, and 5 of the form should be given to your employee. Request that they sign and return the Statement of Exemptions and Filing Status within three days. The net pay minus exemptions must then be calculated and sent to the IRS, along with part 3 of the wage levy, prior to the next payroll period. Use IRS Publication 1494 to figure out your exemptions.
As soon as possible, notify your Human Resources department or a third-party payroll processing service about the levy. You must comply with the wage levy in a timely manner as an employer, or you risk being liable for the debt plus a penalty. It’s also worth noting that taking adverse action, such as firing an employee, when a levy is issued is illegal under federal law. The wage garnishment will remain in effect until the debt is paid in full or the IRS notifies you that the garnishment has been lifted.
Employees’ Next Steps
Wage garnishment is one of the last steps in the IRS repayment process. A Notice and Demand for Payment, as well as a Final Notice of Intent to Levy and Notice of Your Right to a Hearing, should have been sent to your employer after receiving Form 668 W. If you do not respond to the IRS’s requests, Form 668 W will be sent to you.
Fill out your employer’s Statement of Exemptions and Filing Status form. You’ll need to know your filing status, the number of dependents you have, and your pay period. This data will aid in calculating the amount of wages to be sent to the IRS each pay period. The levy will remain in effect until you’ve paid off the debt, worked out a payment plan with the IRS, or demonstrated that the levy has caused you financial hardship.
If you believe the levy will put your family in a financial bind, it will almost certainly do so. The actions of the levy must be challenged. You need to be aware of your choices. How to best position yourself to deal with not only the levy actions, but also a long-term strategy for dealing with back-tax debts.
Get assistance with your tax debt.
On your own, navigating an IRS wage garnishment levy or any other IRS collection action can be difficult. Whether you’re an employer looking for tips on how to properly submit documentation or an employee struggling to make ends meet. For immediate assistance please contact Fresh Start Tax Resolution Services for help!
About Fresh Start Tax Resolution Services
When it comes to Tax Resolution and settling debts with government institutions, you can’t afford to mess around – but nor can you afford to get in bed with “sales rooms” masquerading as a professional tax office. There’s simply too much at stake. And there are too many landmines along the path.
My name is Robert Kirnard. I am a licensed CPA, and able to represent you in front of the IRS. I have been doing so on behalf of clients (both local and national) now for years.
But what you DON’T need is to be bombarded by ruthless sales pitches and overbearing junk mail simply because your situation was picked up by some database somewhere, and you were targeted as a “hot lead”. Yes, this is how these operations can afford to advertise on national television and radio. They have a sales system, and they work it. Very hard.
Here’s the dirty secret of the national tax debt resolution industry: Almost all of your contact will be with a commissioned salesperson. A closer. And their mission is to close YOU.