When the IRS believes you owe back taxes, it could send Form 668-A. It’s not a form for you, however; it’s a legal notice sent to third parties to seize money owed to you. This one-time levy can freeze your assets fast. Learn how it works and what you can do to protect yourself.
What Is IRS Form 668-A?
IRS Form 668‑A is the Notice of Levy issued when the IRS wants to take money or property you’re owed from a third party (like a bank, a client, or a vendor). It’s a one‑time levy, meaning it freezes and seizes funds or assets held at that moment—such as cash in your bank account or payments owed to you—to cover unpaid taxes.
What Form 668-A Does
The IRS sends the form to third parties holding your assets and requires them to turn over any funds they owe you at that time. If it’s a bank account, typically the balance is frozen, and if the issue isn’t resolved within 21 days, the funds get sent to the IRS.
What to Do About Form 668-A
You won’t receive Form 668-A directly. It gets sent to your bank, vendors, or clients. Banks have to freeze funds, and clients have to turn over the money they owe you to the IRS, on your behalf.
The only way you’ll find out if a Form 668-A has been issued concerning your tax debts is if the IRS sends you a notification or the third parties who received it inform you.
What to Do If a Third Party Gets Form 668-A
If you suspect a bank or client has received Form 668-A on your behalf, you should:
- Call the IRS to request a release or plan a challenge before the 21 days are up.
- Provide documentation or clarification to prove the funds held don’t belong to you.
- Hire a tax attorney to negotiate with the IRS for you.
If the IRS has issued a Form 668‑A to seize funds owed to you, time is ticking. At Gabaie & Associates, LLC, we can help you navigate wage levies, bank seizures, trust fund penalties, liens, and more. Reach out today for a free case evaluation: call (410) 358-1500 or fill out our consultation form.
