What if I Get a Levy/Garnishment Against One of My Employees, Vendors, Customers, or Other Third Parties?

If you get a levy against one of your employees, vendors, customers, or other third party, you must turn over to the IRS any property you have that belongs to the person levied against. The IRS uses the levy forms described below.

Regardless of the IRS form used, a levy attaches to property or rights to property you hold that belongs to the person levied against. In general, the IRS uses the levy form that contains the most appropriate instructions about how to comply with the levy.

Please read the instructions on the levy carefully.

• The IRS generally uses Form 668–W(ICS) or 668-W(C)DO to levy an individual’s wages, salary (including fees, bonuses, commissions, and similar items) or other income. Form 668-W(ICS) and/or 668-W(C)(DO) also provides notice of levy on a taxpayer’s benefit or retirement income.

• The IRS generally uses Form 668–A(C)DO to levy other property that a third party is holding. For example, this form is used to levy bank accounts and business receivables.

Employers generally have at least one full pay period after receiving a Form 668-W(ICS) or 668-W(C)DO, Notice of Levy on Wages, Salary and Other Income (or other levy form) before they are required to send any funds from their employee’s wages to the IRS.

Encourage your employees that have a levy placed on their wages to contact the IRS as soon as possible to discuss a release of levy and resolution of their tax liability.

This is the IRS link to the above site. https://www.irs.gov/businesses/small-businesses-self-employed/what-if-i-get-a-levy-against-one-of-my-employees-vendors-customers-or-other-third-parties