A letter from the IRS using code 668 (look in the upper right-hand corner of your letter) is another one of those letters you don’t want to ignore. Letter 668 is giving you notice (21 days) that the IRS has notified your banks, employer, or companies that you do business with, that they should withhold certain payments from you and send them to the IRS to pay down your tax debt.
Simply put, you have unpaid IRS taxes, and no arrangement has been made to pay the IRS. So now, with a letter 668, the IRS is taking collection action.
Whoever gets the Letter 668 is obligated to follow its instructions and take money that was due you and instead pay it to the IRS until your tax bill has been resolved.
Read your copy of Letter 668 carefully. It will tell you who will be docking your money. Then contact your tax professional to discuss your options. Remember, you have only 21 days to stop the IRS.
What You Can Do
Your tax professional will discuss your options with you. They can include paying the IRS what you owe, having a payment plan, or using a Fresh Start Program or Offer In Compromise Program.