Facing a Form 668 W from the IRS can be a daunting experience, but understanding your next steps is crucial to navigating through this challenging situation. At Fresh Start Tax Resolution in Greensboro, North Carolina, we specialize in assisting individuals and employers alike in resolving tax issues effectively. In this comprehensive guide, we’ll explore the necessary actions for both employers and employees upon receiving a Form 668 W, empowering you to address this matter with confidence and clarity.
Received a Form 668 W? What are your next steps?
Understanding Form 668 W
Form 668 W, also known as a wage levy, is issued by the IRS to employers when an employee fails to respond to IRS notices regarding an outstanding tax debt. This form mandates that a portion of the employee’s wages be remitted directly to the IRS until the debt is satisfied. For employers, timely action is imperative to comply with the levy and avoid penalties, while employees must understand their rights and obligations to navigate the situation effectively.
Next Steps for Employers In Greensboro
- Act Promptly: Upon receiving Form 668 W, employers must take immediate action to comply with the wage levy requirements. Failure to respond promptly may result in additional penalties and liabilities.
- Provide Employee Documentation: Furnish the affected employee with parts 2, 3, 4, and 5 of Form 668 W and request that they sign the Statement of Exemptions and Filing Status within three days.
- Calculate and Deduct Wages: Determine the net pay after exemptions using IRS Publication 1494 and deduct the appropriate amount from the employee’s wages before the upcoming payroll period.
- Notify HR or Payroll Department: Inform your Human Resources department or third-party payroll processor about the wage levy to ensure compliance and timely processing.
- Ensure Compliance: As an employer, it’s imperative to comply with the wage levy without delay to avoid additional penalties and legal repercussions. Remember, adverse actions against the employee, such as termination, are prohibited by federal law once a levy is issued.
Next Steps for Employees Facing Form 668 W
- Complete the Statement of Exemptions: If your employer receives Form 668 W, promptly complete the Statement of Exemptions and Filing Status provided by your employer. Provide accurate information about your filing status, dependents, and pay period.
- Understand Levy Implications: Recognize that the levy will continue until the tax debt is paid in full, a payment plan is arranged with the IRS, or you demonstrate financial hardship.
- Challenge Financial Hardship: If you believe the levy will create a financial hardship for you and your family, explore your options for challenging the levy actions. Seek guidance from experienced professionals, like those at Fresh Start Tax Resolution, to develop a comprehensive strategy to address back-tax debts effectively.
Seek Expert Assistance from Fresh Start Tax Resolution
Navigating through wage levies and IRS tax issues can be complex and overwhelming. At Fresh Start Tax Resolution, our team of seasoned professionals is here to provide personalized guidance and support tailored to your specific needs. Whether you’re an employer or an employee facing Form 668 W, we’re dedicated to helping you navigate through this challenging process with confidence and peace of mind.
Contact Fresh Start Tax Resolution today for personal tax services in Greensboro, North Carolina
Don’t let tax challenges derail your financial well-being. Contact Fresh Start Tax Resolution, a tax debt relief company in Greensboro, NC today to schedule a consultation and take the first step towards resolving your tax issues effectively. Our experienced team is here to provide expert guidance and support, empowering you to achieve lasting financial stability.