IRS Letter 668(W) is a formal Notice of Levy on Wages, Salary, and Other Income, which authorizes the IRS to garnish your wages or other sources of income to satisfy an unpaid tax debt. This type of levy is one of the most aggressive collection actions the IRS can take and usually occurs after multiple warnings have gone unresolved, including failure to respond to notices like the CP504 Notice or Letter 1058.
When the IRS issues Letter 668(W), they send a copy to your employer, requiring them to withhold a portion of your wages and send it directly to the IRS. The amount garnished is based on the IRS levy tables, which allow you to retain a portion of your income for basic living expenses, but it can still leave taxpayers with significantly reduced take-home pay.
To stop a wage levy, taxpayers must:
- Pay the outstanding debt in full.
- Request an Installment Agreement or submit an Offer in Compromise to settle the debt.
- Request a Collection Due Process (CDP) hearing if they believe the levy is unjustified or they want to propose alternative payment options.
Taking action quickly is essential, as wage garnishments can continue until the full tax debt, including penalties and interest, is paid off.