The LTR 668(Y) is the actual levy document, but you may receive a copy or notice referencing it. The IRS serves Form 668-A (Notice of Levy) or Form 668-W (Notice of Levy on Wages) on the third party holding your assets. The LTR 668(Y) is related correspondence that may notify you of the levy action.
What's Being Levied
The levy can target bank accounts (one-time freeze and seizure of funds on deposit), wages (continuous garnishment of a portion of each paycheck), accounts receivable (payments your clients owe you), Social Security benefits (up to 15%), retirement accounts, rental income, and any other property or rights to property held by third parties.
The 21-Day Window for Bank Levies
When the IRS levies a bank account, the bank freezes the funds for 21 days before sending them to the IRS. During that window, you can negotiate a levy release by setting up an installment agreement, demonstrating economic hardship, or resolving the underlying balance. After 21 days, the money is gone.
Levy Release
The IRS must release a levy if the underlying tax is satisfied, the collection period expired, the levy creates an economic hardship, the taxpayer enters into an installment agreement, or releasing the levy would facilitate collection. Contact the IRS immediately to discuss release grounds.
If your assets have been levied, call us immediately at (813) 229-7100. The 21-day window on bank levies makes time critical.