IRS Form 668-W: Wage Levy & Garnishment
IRS Form 668-W is the notice the IRS sends to your employer to seize a portion of every paycheck. This is the most aggressive collection tool the IRS has — and once your employer receives it, they MUST comply or face penalties themselves. The levy continues until your tax debt is paid, the CSED expires, or the IRS releases it.
How Much the IRS Takes From Your Paycheck
EXEMPT AMOUNT: The IRS must leave you a minimum amount to live on. This is calculated based on your filing status and number of dependents — it equals the standard deduction plus personal exemptions divided by the number of pay periods.
TAKE-HOME CALCULATION: Gross pay minus the exempt amount = the amount subject to levy. The IRS takes the ENTIRE subject-to-levy portion. Example: $4,000 monthly gross minus $1,500 exempt = $2,500 seized by the IRS.
FILING STATUS MATTERS: A married filing jointly taxpayer with 2 dependents gets a much higher exempt amount than a single filer with no dependents. The IRS uses the status from your most recently filed return.
ONE-TIME LEVY vs. CONTINUOUS LEVY: Form 668-W is a continuous levy — it attaches to every paycheck until released. A Form 668-A(c)DO is a one-time levy on a specific non-wage payment (like a bonus or severance).
How to Release a 668-W Wage Levy
Pay in Full
The levy releases automatically when the tax debt (including penalties and interest) is fully paid.
Installment Agreement
Entering into a streamlined or regular installment agreement generally stops wage levy action. Direct debit agreements are preferred.
Offer in Compromise
A pending OIC suspends collection activity — including wage levies — while the offer is under review. An accepted OIC releases the levy permanently.
Currently Not Collectible
If you prove you can't pay basic living expenses, the IRS may place your account in CNC status — releasing the levy until your financial situation improves.
CDP Hearing Appeal
Request a Collection Due Process hearing within 30 days of your final levy notice (Letter 11 / LT11). The levy is suspended while the appeal is pending.
Innocent Spouse Relief
If the tax debt is from your spouse's income or errors, Form 8857 can release the levy on YOUR wages while the relief claim is processed.