IRS Wage Garnishment: How to Stop an IRS Wage Levy

An IRS wage levy takes money from every paycheck until your tax debt is paid or a release is granted. Unlike a bank levy — which is a one-time freeze — a wage levy is continuous. Your employer must comply immediately upon receiving it, and the deductions keep coming every pay period. If you’ve received a notice about a wage levy, check your notice with our IRS notice lookup tool and see if you could qualify to settle for less with our Offer in Compromise calculator.

What Is an IRS Wage Levy (Wage Garnishment)?

A wage levy is the IRS’s authority under IRC § 6331 to seize wages, salaries, commissions, and bonuses from your employer. The moment your employer receives Form 668-W (Notice of Levy on Wages, Salary, and Other Income), they are legally obligated to begin withholding — usually starting with your next paycheck.

Your employer is not the enemy here. They face penalties if they don’t comply. Most employers are simply following federal law.

Wage Levy vs. Bank Levy: Key Differences

Feature	Wage Levy	Bank Levy
Frequency	Continuous (every paycheck)	One-time per levy issuance
Exempt amount	Yes — set by Publication 1494	No automatic exemption
Notice to employer	Form 668-W	Form 668-A
Who receives it	Employer	Bank or financial institution
Requires new levy for new checks?	No — continues automatically	Yes — IRS must issue a new levy

How Much Can the IRS Take from Each Paycheck?

This is the most important number. The IRS calculates a standard exemption amount — the minimum income you’re allowed to keep. Everything above that goes to the IRS.

The exemption is calculated annually and published in IRS Publication 1494 (Table for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income). The exempt amount depends on:

• Your filing status (single, married filing jointly, head of household, etc.)
• Your number of exemptions (yourself + dependents)
• Your pay period (weekly, biweekly, semimonthly, monthly)

Example (2024 figures, Publication 1494)

For a single filer claiming 1 exemption (themselves), paid weekly:

• Weekly exempt amount: approximately $284.60 (2024 Publication 1494 — updates annually)
• If your weekly take-home pay is $900, the IRS can levy $615 per week
• That’s about 68% of your take-home pay

For a married filer with 3 dependents (4 total exemptions), paid biweekly:

• Biweekly exempt amount: approximately $1,346
• The IRS takes everything above that each pay period

When Form 668-W is delivered to your employer, you’ll receive a Statement of Exemptions form to complete. You must return it within 3 days. If you don’t return it, your employer is required to calculate your exemption as if you’re married filing separately with zero dependents — the lowest possible exempt amount.

Fill out the exemption statement immediately.

The Notice Sequence Before a Wage Levy

Just like a bank levy, the IRS must follow a required notice sequence before garnishing your wages (IRC § 6330):

1. CP14 — Initial balance due notice
2. CP501, CP503 — Reminder notices
3. CP504 — Notice of Intent to Levy
4. Letter 1058 / LT11 — Final Notice of Intent to Levy (triggers your 30-day CDP rights)

If you received a Final Notice and haven’t acted, the IRS can issue Form 668-W to your employer — often with no further warning to you. Your employer may know before you do.

How to Stop an IRS Wage Levy

You have several options. The faster you act, the more pay periods you can save.

1. Pay the Full Balance

Full payment requires the IRS to release the levy promptly (IRC § 6343). If paying in full, request a levy release in writing and by phone to expedite it.

2. Set Up an Installment Agreement

An approved installment agreement (Form 9465) will release the wage levy. You’ll need to be current on all tax filings. The IRS Online Payment Agreement tool at IRS.gov can process simple cases in minutes. Once approved:

• Call your revenue officer with the confirmation number
• Request an expedited levy release letter
• Fax the release to your employer before the next payroll run

The goal is to get the release to your employer’s payroll department before the next payroll processing deadline.

3. Submit an Offer in Compromise (OIC)

An accepted OIC releases all levies. Because the OIC process takes 7–12 months, you’ll need to also request a levy release based on hardship while the offer is pending. Use our OIC calculator to estimate your offer amount and eligibility. If accepted, the OIC settles the entire debt — and the levy is permanently released.

4. Request Currently Not Collectible (CNC) Status

If paying your tax debt — even partially — would prevent you from covering basic living expenses (rent, utilities, food, medical care), the IRS may place your account in “Currently Not Collectible” status. To request CNC, you’ll complete Form 433-F (or Form 433-A for business owners). The IRS compares your income against its Collection Financial Standards. If approved, the wage levy must be released.

5. File for a Collection Due Process (CDP) Hearing

If your Final Notice of Intent to Levy (Letter 1058) is within the last 30 days, you can file Form 12153 to request a CDP hearing. Submitting this form:

• Immediately suspends levy action (including any active wage levy)
• Opens your case to an independent IRS Appeals officer
• Preserves your right to Tax Court if you disagree

If the 30-day window has passed, file for an Equivalent Hearing — it won’t suspend the levy, but it may still result in a resolution agreement that releases it.

6. Prove Economic Hardship

If the levy leaves you unable to pay for basic necessities, call 1-800-829-1040 and request a levy release based on economic hardship under IRC § 6343(a)(1)(D). Have documentation ready: pay stubs, bank statements, monthly expense summary. This doesn’t require an installment agreement — but the IRS will likely require one as a condition of the release.

Employer Obligations

Your employer has no discretion once Form 668-W arrives. Federal law requires them to:

• Begin withholding immediately (usually next payroll cycle)
• Send funds to the IRS within 7 business days after each payroll
• Continue withholding until they receive a release notice (Form 668-D)

Employers who fail to comply can be held personally liable for the amount they should have withheld.

You cannot ask your employer to ignore or delay the levy. Your employer cannot legally do so without risking their own liability.

Protecting Certain Income

Not all income is subject to wage levy. The following are partially or fully exempt under IRC § 6334:

• Unemployment benefits — fully exempt from levy
• Workers’ compensation — fully exempt
• Public assistance / welfare payments — fully exempt
• Social Security benefits — generally exempt, with narrow exceptions (Federal Payment Levy Program can take up to 15% for federal tax debts)
• Child support payments received — exempt
• Certain pension payments — partially exempt

Tips and bonuses, however, are not exempt — the IRS can levy these as supplemental wages.

What to Do Right Now

If a wage levy is already hitting your paychecks:

1. Confirm the levy — call your employer’s HR or payroll department and ask for a copy of Form 668-W
2. File the exemption statement within 3 days if you haven’t (get the form from your employer)
3. Call the IRS at 1-800-829-7650 — ask for the revenue officer assigned to your case
4. Propose a resolution — installment agreement is the fastest path to a levy release
5. Act before the next pay cycle — every payroll deadline matters

The longer you wait, the more paychecks the IRS collects.

Sources

• IRS: Levy
• IRS Publication 1494: Tables for Figuring Amount Exempt from Levy
• IRS Publication 594: The IRS Collection Process
• IRS Form 668-W: Notice of Levy on Wages, Salary, and Other Income
• IRS Form 12153: Request for a Collection Due Process Hearing
• IRC § 6331: Levy and Distraint
• IRC § 6334: Property Exempt from Levy

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