When it comes to levying intangible property from a third party of the taxpayer, the IRS will generally use one of two forms:
1. Form 668-W (Notice of Levy on Wages, Salary, and Other Income) – This form is used to levy on wages or salaries for personal services, or in some cases for accounts receivable for personal services performed in a work relationship.
2. Form 668-A (Notice of Levy) – This form is used to levy on all other types of intangible property or property rights belonging to the taxpayer.
It is important to understand that the IRS does not have to file a Notice of Federal Tax Lien prior to issuing a Notice of Levy. Remember that a levy of intangible property will generally affect you in places that you do not control. If the IRS is attempting to levy your wages from your employer, there is little you can do to stop them from dealing directly with your employer.
Issuing Levy on Intangible Property
The IRS can send a Notice of Levy to a third party in person, by mail, or by fax. Must to the taxpayer surprise, the IRS will generally issue the levy notice to the third party days before notifying the taxpayer of the levy. This means that if the IRS has issued a levy against you, it is already too late to prevent it because the third party has already received a notice.