What We Are Seeing – IRS Automatic Wage Levies Are Back

After a four‑year pandemic pause, the IRS has quietly flipped the switch on its Automated Collection System (“ACS”) levy machinery. Beginning this spring we have seen a surge of computer‑generated LT11 “Final Notice of Intent to Levy and Your Right to a CDP Hearing” letters landing in clients’ mailboxes – followed a few weeks later by Form 668‑W wage garnishment orders sent directly to employers. The takeaway: if you receive an Intent to Levy notice and do nothing, your next paycheck could arrive significantly lighter. Employers: your role

Employers that receive a Form 668‑W must begin withholding after the first pay period and remit the non‑exempt portion directly to the IRS. Failure to comply makes the company liable for the amount it should have sent. We can help

If you have received a CP504, CP504B, or LT11 notice, or a wage levy, time is not on your side. Our tax controversy team negotiates daily with ACS and local Revenue Officers. We can:

·         Halt or reduce active wage garnishments

·         Secure affordable payment plans or hardship status

·         Prepare and file Offers in Compromise

·         Correct wrongly assessed balances

Bottom line

The IRS’s collection machine is fully operational again. Don’t wait for your HR department to hand you a garnishment notice. The moment you see an Intent to Levy, call us/Disclaimer: This post is for informational purposes only and is not legal advice. Consult a qualified tax professional regarding your specific circumstances.