Form 668-A is the IRS Notice of Levy sent to a bank or another third party holding your money. The bank freezes the funds in your account at the moment the levy arrives, then holds them for 21 days. Unless the IRS releases the levy in that time, the bank must send those funds to the IRS.
Those 21 days are the part that matters. They exist so you can reach the IRS before the money leaves, and we understand how quickly they go when you’ve just found your account frozen.
If that happened to you this week, call us at 516-209-2594 or reach out for a free consultation today.
What Is Form 668-A From the IRS?
Form 668-A is the levy form the IRS uses for money and property a third party is holding for you. The IRS says on its third-party levy page that it generally uses Form 668-A to levy other property a third party holds, and gives bank accounts and business receivables as examples.
The form goes to the bank, not to you. Whatever form the IRS uses, the levy attaches to the property the bank holds that belongs to you. It also shows a “Total Amount Due” calculated to a specific date, and the IRS notes that interest and penalties keep accruing after that date.
What Your Bank Does the Day the Levy Arrives
The timing is precise, and it sets what you can still do.
Funds in the Account That Day
The IRS generally delivers levies by U.S. mail. The date and time the bank receives the levy is when the levy is considered made, so the money in your account at that moment is what gets frozen.
Deposits Made Afterward
The IRS says a bank levy normally doesn’t affect money deposited after the levy date. That’s a key difference from a wage levy, which keeps attaching to each paycheck until it’s released. It also means a new deposit isn’t automatically lost, though an unresolved balance can lead to another levy later.
The 21 Days Before the Money Goes to the IRS
The Internal Revenue Code gives you a 21-day waiting period on a bank levy before the bank has to comply. The IRS says that window exists so you can contact it and arrange to pay the tax, or tell it about errors in the levy.
If the bank hasn’t received a release of levy from the IRS within 21 days of receiving the levy, the funds that were in the account at that date and time must be sent to the IRS. After that, getting the money back is a much harder conversation.
How a Levy Comes Off Your Account
How do you get a levy off your account? The IRS issues Form 668-D, Release of Levy, once the tax on the levy is paid in full, and it may also release a levy when you make other arrangements to pay. There are three practical routes.
Paying or Arranging to Pay
If you can pay the balance, the levy’s reason is gone. If you can’t, an installment agreement is one arrangement to ask about, and our page on IRS installment plans walks through the agreement types and their thresholds.
Showing the Levy Creates a Hardship
The IRS says a levy may be released if it’s causing an immediate economic hardship. That takes proof of your income and expenses, gathered fast.
Showing It Was Issued in Error
The IRS also releases levies issued in error. If the balance is wrong, or the levy reached the wrong account, say so inside the 21 days.
How do you stop the IRS from seizing property in the first place? Respond to the notices before a levy is ever served. The IRS says to contact it right away if you receive a Final Notice of Intent to Levy and Notice of Your Right to a Hearing, because that’s the last notice before enforced collection.
The Amount on the Levy Isn’t Your Payoff
The “Total Amount Due” printed on a levy is calculated through a date shown on the form. The IRS says interest and any applicable penalties keep accruing after that date, so the real balance is higher by the time you act.
To get a current payoff figure, you have to contact the IRS yourself. The IRS says it can’t give that figure to the third party that received the levy, so your bank can’t tell you what it will take to clear the account. That’s one more reason to call early in the 21 days rather than late.
The same form is used for business receivables. If you run a business, the IRS can send Form 668-A to a customer who owes you money, and that customer then pays the IRS instead of you. The IRS’s Publication 594, The IRS Collection Process, covers the wider sequence.
Form 668-A and Form 668-W Are Not the Same Notice
Form 668-W is the IRS levy on wages, salary and other income, and it goes to your employer. Unlike a bank levy, a wage levy is continuous and attaches to each paycheck until it’s released, with part of your pay exempt. If it’s your paycheck being taken, our page on an IRS levy on your wages covers that side, and our guide on whether it is a levy or a garnishment helps you tell the two apart.
What We Do First When a Client’s Account Has Been Levied
We start with the calendar. We find the date the bank received the levy and count the 21 days, because every step after that has to fit inside the window.
Then we pull the IRS account transcripts to confirm the balance on the levy is right, check whether all returns are filed, and work out which release route the numbers support. Our page on getting an IRS bank levy released explains how we approach it.
Guy A. Finocchiaro, CPA, holds a certificate from the State of New York. If your account was frozen this week, bring us the bank’s letter and any IRS notices, in our Uniondale office or virtually, and we’ll work through the window with you.
FAQ
What is form 668 A from the IRS?
Form 668-A is the IRS Notice of Levy used for money and property a third party holds for you, such as a bank account. The bank freezes the funds in the account when the levy arrives and must send them to the IRS after 21 days unless the IRS releases the levy.
How to stop the IRS from seizing property?
Respond to IRS notices before enforced collection starts, especially a Final Notice of Intent to Levy. Paying, setting up an installment agreement, or showing hardship or an error can stop or release a levy.
How do you get a levy off your account?
The IRS issues Form 668-D, Release of Levy, when the tax on the levy is paid in full, and may release it when you make other payment arrangements, when it causes immediate economic hardship, or when it was issued in error.