If you’ve received IRS Form 668 W, it indicates an impending wage levy for outstanding tax debts. This document serves as a guide for both employers and employees on how to proceed with this situation.
For Employers
Upon receiving Form 668 W, it’s crucial to act promptly:
- Distribute parts 2, 3, 4, and 5 of the form to the affected employee, requesting the return of the signed Statement of Exemptions and Filing Status within three days.
- Calculate the employee’s net pay after exemptions, as per IRS Publication 1494, and prepare to remit this amount to the IRS.
- Inform your HR department or payroll service about the levy to ensure compliance and avoid penalties.
- Remember, it’s illegal to terminate an employee due to a wage levy. The levy remains in effect until the IRS releases it or the debt is settled.
For Employees
If your wages are being levied, consider the following steps:
- Fill out and return the Statement of Exemptions and Filing Status to your employer promptly.
- Understand that the levy is a result of unaddressed IRS notices and will continue until the debt is resolved or a payment plan is arranged.
- If the levy causes financial hardship, explore options to challenge it and develop a broader strategy for addressing your tax debts.
Seeking Assistance with Tax Debt
Navigating an IRS wage levy can be complex. Whether you’re an employer or an employee, getting expert help can provide clarity and direction.
The expert specialists at Fiore Tax Resolution with their extensive IRS and tax agency experience, offer personalized assistance for those facing tax liabilities. Their knowledge can help mitigate the impact of a wage levy and explore viable solutions for tax debt resolution.
Contact us for a consultation to understand your options and take informed steps towards resolving your tax issues.
