What Are the Series 668 Forms All About??

The group of forms 668A, 668D, 668W, 668Y, 668Z are notices IRS sends a taxpayer advising of an action the IRS has initiated against them, or release of such actions. Following is a brief description of each notice and the consequences for the taxpayer:

  • Form 668A, Notice of Levy (Accounts) is sent to both individuals and businesses. When the taxpayer files a return without remitting the balance due or the IRS has prepared a substitute for return (SFR) on behalf of the taxpayer, the IRS sends a series of notices to secure payment of the balance due. The final notice of the series gives the taxpayer 30 days to pay or request a hearing. If the taxpayer fails to respond to the final notice and intent to levy, the IRS will seek enforced collection by levy. Taxpayers have 21 calendar days from the date of the letter to respond. This notice applies to the taxpayer's money or assets held by third parties. Such third parties are then compelled to turn over the taxpayer's assets to the IRS.

  • Form 668D, Release of Levy/Release of Property from Levy is sent to taxpayers who meet one of the terms for release.

  • Form 668W, Notice of Levy on Wages, Salary, or Other Income is issued to a taxpayer advising him that his wages, pension, or other income is subject to levy. The amount required to be sent to the IRS is determined from a chart provided by the IRS. The levy will remain in place until the taxpayer submits full payment, enters into a payment agreement to address the unpaid balance or provides substantiation of financial hardship.

  • Form 668Y, Notice of Federal Tax Lien is the taxpayer's copy of the form filed in the local courthouse where the taxpayer lives. The lien protects the interests of the government in the event of the sale of property of for priority in a bankruptcy proceeding.

    • Form 668Z, Certificate of Release of Federal Tax Lien is provided to the taxpayer upon request when the lien has been satisfied or otherwise released.

The 668 series of forms typically appear on a taxpayer’s credit record and damage the credit score. Much of that damage may be mitigated by filing form 12277 requesting withdrawal once the requirements are met.

By: Lawrence Lawler, CPA, EA, CTRS