IRS Form 668-D: Release of Levy / Release of Property from Levy

Form 668-D is the Release of Levy. It is the document the IRS issues to end an active levy on wages (Form 668-W), bank accounts (Form 668-A), or retirement income (Form 668-R). Once Form 668-D is served on the levy source, that source is required to stop withholding and, in the case of a bank levy during the 21-day hold period, release the frozen funds back to the taxpayer.

How to Get One

Form 668-D does not generate automatically. The IRS releases a levy when a specific ground is established: the balance is paid, the collection statute expired, a reasonable installment agreement is in place that provides for release, the levy was issued in error, or the levy creates an economic hardship under IRC Section 6343. Of these, hardship is the most common path when there is no money to pay.

To establish hardship, the IRS typically requires a Form 433-A or 433-F collection information statement showing that current income minus allowable expenses does not leave enough to sustain the levy. The determination is handled by the Automated Collection System, a Revenue Officer, or an Appeals Officer, depending on how the case is routed.

Confirm the Release

Request a copy of the signed Form 668-D as soon as it is issued. Do not rely on the IRS employee's word that it was sent. Fax or email a copy to your employer or bank directly, with a cover note, and confirm receipt. Payroll departments and bank levy desks sometimes misplace the release, and every day the levy stays active is a day of lost income.

What Form 668-D Does Not Do

Release of a levy is not forgiveness of the debt. The balance still exists, the Collection Statute Expiration Date still runs, and the IRS retains the right to levy again later if circumstances change. A release obtained for hardship can be followed by a new levy if your income increases. The release addresses the active levy. The underlying resolution, whether that is an installment agreement, offer in compromise, or currently-not-collectible status, is a separate matter.

If you need a levy released, call us at (813) 229-7100. We handle levy release filings regularly and know how to document hardship so the IRS has to act.