IRS Form 668-W (Notice of Levy on Wages, Salary, and Other Income) — Definition Glossary

Defined by Sarah Mitchell, CPA | Reviewed by: James Okafor, EA

Full Definition

IRS Form 668-W is the formal document the IRS serves on employers to levy an employee’s or business owner’s wages. Unlike a bank levy (one-time seizure with 21-day hold), a wage levy is continuous — it attaches to all future paychecks until the tax debt is fully paid or the IRS releases the levy. The employer must immediately comply with Form 668-W and submit the levied portion of each paycheck directly to the IRS. For a sole proprietor or pass-through entity owner, the IRS can levy salary payments, management fees, and distributions. For a business, the IRS can levy accounts receivable — serving Form 668-A on customers who owe money to the business, directing them to pay the IRS instead.

Why This Matters for Businesses With Tax Debt

Understanding IRS Form 668-W (Notice of Levy on Wages, Salary, and Other Income) is essential for any business owner navigating IRS enforcement. This term directly affects the options available for resolving business tax debt — including whether tax debt financing is available, how lien subordination works, and what enforcement the IRS can take.

Related Terms

IRS Bank Levy, Notice of Levy, IRS Garnishment

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Sources: IRS.gov; Internal Revenue Code (IRC); IRS Publication 594 (The IRS Collection Process); IRS Publication 1 (Your Rights as a Taxpayer). Tax Funds is a financing marketplace — not a lender, CPA firm, or law firm. This content is for informational purposes only.