IRS Letter 668A
Notice of Levy on Accounts Receivable — Business
The IRS is telling your customers to pay them instead of you. Your cash flow is in danger.
Deadline
Immediate — the levy is already served on your customers
Letter 668A is served directly on your customers or clients. They are legally required to send payments to the IRS instead of you. Every day it stays in place, your business loses income.
Act within days — enforcement is imminent or already in progress.
What IRS Letter 668A Means
Letter 668A is a levy on accounts receivable — one of the most damaging forms of IRS enforcement for business owners. The IRS serves this notice on your customers and clients, ordering them to redirect payments owed to you directly to the IRS.
For businesses that invoice clients on net-30 or net-60 terms, this means your incoming cash flow is intercepted at the source. Customers receive this notice, become confused about your financial situation, and are legally required to pay the IRS. Some customers may even question whether to continue doing business with you.
An accounts receivable levy is a one-time seizure of payments currently owed to you — but it remains with each customer until that customer's specific debt to you is paid. Future invoices require a new levy notice per customer, but the IRS can and will issue them.
What the IRS Can Do If You Don't Respond
- Intercept current payments owed to you from customers who received the notice
- Issue additional 668A levies to other customers
- File a Notice of Federal Tax Lien on business assets
- Pursue levy on business bank accounts and equipment
- Assign a Revenue Officer to escalate business enforcement
What You Should Do Right Now
- 1
Contact a tax professional immediately — every day this levy stands is lost revenue
- 2
The fastest resolution is an installment agreement — once approved, the IRS can issue a levy release (668D)
- 3
Notify affected customers that you are working to resolve the IRS matter — they are usually cooperative once a release is in place
- 4
Evaluate Offer in Compromise or Currently Not Collectible for the underlying business balance
- 5
Do not ignore — the levy does not expire on its own
Resolution Options Available to You
Get the 668A levy released as quickly as possible
An approved payment plan typically results in immediate levy release
Settle the business tax debt that triggered the levy
If the business cannot pay, CNC status requires levy release
Frequently Asked Questions About IRS Letter 668A
Will my customers find out I have an IRS problem?
Yes. Letter 668A is served directly on your customers. They are notified of your tax debt and ordered to pay the IRS. This is why speed is critical — the sooner the levy is released, the less damage to your business relationships.
How do I get a 668A levy released?
Levy releases (Form 668D) are issued when you enter a resolution agreement (installment plan, OIC acceptance), pay the balance in full, or qualify for CNC status. A tax professional can typically get a release in place within days of an agreement being reached.
Professional References
IRC: IRC §6331 — Levy; IRC §6343 — Release of Levy
IRM: IRM 5.11.6 — Levy on Accounts Receivable
Got IRS Letter 668A? Let's Resolve It.
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