IRS Levy | IRS Wage Garnishment Release | Flat Fee Tax Service
Updated: Nov 22, 2019
IRS Levies on 3rd Parties - Wages, Social Security, Bank Accounts, etc.
An IRS levy on 3rd parties is, in effect, a seizure by the IRS of a taxpayer's property, or rights to property, in possession or control of a 3rd party. A 3rd party levy can be ordered on your employer (IRS Wage Garnishment), the Social Security Administration, your bank, your stockbroker, property rental and anyone who pays you money.
An IRS levy on a 3rd party is the most common collection tactic by the IRS. Collection enforcement through a tax levy is very simple for the IRS to implement. The two most common forms of IRS tax levies are a bank account levy and an IRS wage garnishment. You can include a levy on Social Security as a 3rd party levy. An IRS levy on Social Security would be under the Federal Payment Levy Program (FPLP) and carries its own set of challenges for a taxpayer to overcome.
An IRS levy is sometimes referred to as a tax garnishment (#irswagegarnishment). Please note that the IRS does not use the term garnishment. For purposes of this blog, the term garnishment and levy are interchangeable.
As a practical matter, the IRS uses the levy of wages (include Social Security in this discussion) and bank accounts as their most common enforcement method because that is where your money can be found easily. Let's call an IRS wage garnishment and an IRS bank levy as the "path of least resistance."
The IRS will know what specific bank you do business with and who your employer is. The IRS gathers information from a variety of sources such as your tax returns, W-2 reporting by your employer, 1099 reporting of a contract worker and in the case of Social Security the IRS matches their computer records with that of the Financial Management Services which sends out checks for the federal government.
If you have made a payment to the IRS for a tax debt, your bank information has been recorded. When the IRS decides to enforce collection of delinquent tax debt, the IRS simply retrieves information from its data bank.
The IRS will execute a tax levy by serving IRS Form 668-A, Notice of Levy or IRS Form 668-W, Notice of Levy on Wages, Salary and Other Income. IRS Form 668-A is a one time levy that attaches to all of the funds and property of a taxpayer held by a 3rd party at the time the 668-A was served. A 668-A levy would be used at your bank or brokerage. Whatever the IRS finds at your bank at the time of service of the 668-A levy is what the IRS is entitled to. To receive any more funds from a 668-A levy the IRS would need to be serve the levy again and again and again.
An IRS 668-W levy, on the other hand, is quite different. A 668-W is different from the 668-A levy in that it is continuous on part (a very large part) of the funds or to be held by a 3rd party (your employer). A 668-W levy (IRS wage garnishment) only needs to be served once to be fully in force.
YOU WILL NEED AN IRS LEVY RELEASE FORM
668-D RELEASE of LEVY
The tax professionals at Flat Fee Tax Service, Inc. will have your IRS Wage Garnishment stopped and released within one (1) day / 24 hours. The experienced IRS Tax Attorneys at Flat Fee Tax Service, Inc. have been very successful at having a 668-W levy released even though you may have delinquent tax returns. Please note: You will have to get those unfiled tax returns of yours filed.
Be advised that the odds of having an IRS 668-W levy released on your own (without an IRS Tax Attorney) are "slim and none" if you have missing tax returns. Also, if you have an IRS Revenue Officer assigned to your case, the chances of having a 668-W levy released on your own is pretty close to impossible to never.
If you have an IRS Revenue Officer assigned to your case, it will take more than 1 day to have your tax levy released. When an IRS Revenue Officer is involved, you will be required to provide pay stubs, bank statements, and other information. Don't expect the Revenue Officer to co-operate with you because he/she doesn't have to. You will need an experienced IRS Tax Attorney to reach your desired result.