Notice of Levy (IRS Levy on Wages, Bank Accounts, and Receivables) — Definition Glossary

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

Full Definition

A Notice of Levy is the formal IRS document issued to a third party — bank, employer, or accounts receivable debtor — directing them to turn over property or funds belonging to a delinquent taxpayer. There are several types: Notice of Levy on Wages (Form 668-W) — served on the employer and is continuous until the debt is paid; Notice of Levy on Financial Accounts (Form 668-A) — served on the bank and is a one-time seizure with a 21-day hold; Notice of Levy on Accounts Receivable — served on customers owing money to the business. The difference between a levy on wages and a bank levy is critical — the wage levy is continuous (attaches to all future paychecks), while the bank account levy is a one-time action.

Why This Matters for Businesses With Tax Debt

Understanding Notice of Levy (IRS Levy on Wages, Bank Accounts, and Receivables) 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 Federal Tax Lien, 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.