Leatherneck BookkeepingCall (208) 614-1965The IRS levied your pay or bank. Here's what to do today.
Take a breath. Work down this list in order.
- Find the paperwork. Your employer or bank should give you a copy of the levy (Form 668-W for wages, 668-A for a bank). Look for the IRS phone number on it.
- Fill out the Statement of Exemptions (wage levy) and give it back to your employer within 3 days, so you keep the right exempt amount.
- Bank levy? The bank generally holds the money 21 days before sending it. Act inside that window.
- List your monthly income and basic expenses (rent, food, utilities, car, insurance, medical). The IRS will ask for these to consider a hardship release or a payment plan.
- Check which tax returns aren't filed. Most options need them filed.
- Get your employer's or bank's fax number so a release can be sent fast.
- Call the IRS number on the levy, or call us first and we'll get on that call with you.
Sources: irs.gov "How do I get a levy released?" and "What if a levy is causing a hardship"; IRS Publication 1494.
- Free call. Tell us what letter you got or what's being taken.
- Form 8821. You sign it, and we pull your IRS transcripts so we can see exactly what the IRS sees: balances, years, unfiled returns, and notices.
- A plan in plain English. We explain your options (payment plan, hardship, penalty relief, filing missing returns) and what the IRS will need from you.
- We prepare the paperwork with you: financial statements, missing returns, and letters.
- We get on the phone with you. When you call the IRS, we join the call and help you. You speak for yourself, and we're right there.
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Call (208) 614-1965Request a free consultationCommon questions
Can I be fired over an IRS wage levy?
Federal law (Consumer Credit Protection Act, 15 U.S.C. § 1674) says an employer can't fire you because your pay is being garnished for one debt. That protection doesn't cover you if your pay is garnished for two or more separate debts, and some states add more protection. If you think you were fired over a garnishment, talk to the U.S. Department of Labor Wage and Hour Division or an employment attorney. Source: 15 U.S.C. § 1674; dol.gov Fact Sheet #30
Can the IRS take my bonus, commissions or overtime?
Yes. An IRS wage levy (Form 668-W) covers wages, salary, bonuses, commissions and similar pay. The exempt amount is figured on your total pay, so extra pay mostly goes to the IRS. Source: IRS Internal Revenue Manual 5.11.2; IRC § 6331
How fast can a levy be released?
The IRS has to release a levy in certain cases, for example when it causes an economic hardship (you can't pay basic living expenses), when you set up a payment plan whose terms don't allow it, or when the debt is paid. A release can happen quickly once the IRS has your financial information, but we can't promise a timeline. Have your employer's or bank's fax number ready. Source: IRC § 6343; irs.gov 'What if a levy is causing a hardship'
Related help
Leatherneck Bookkeeping is not a law firm and does not represent clients before the IRS or any state tax agency. With your signed IRS Form 8821, we can pull your IRS transcripts and receive copies of your IRS notices. When you call the IRS, we join the call and help you, but you speak for yourself. Results depend on your facts and IRS rules; no outcome is guaranteed.