The letter LP68 can also be known as Letter 668D. This is a letter sent by the IRS to taxpayers indicating actions are being taken on their personal assets, such as a tax lien, tax levy, wage garnishment, or a release of any of the sort. This letter notifies taxpayers that the IRS has released the Notice of Levy for the taxpayer listed on the letter. This means that the taxpayer is no longer required to turn over any money, property, or rights to property belonging to that taxpayer. No action is required from the part of the taxpayer.

Receiving Letter 668D/LP68 is an indication from the IRS letting taxpayers know that their debt obligations have been satisfied. As part of the bylaws of the letter LP68/668D, any and all levies placed on your tangible and intangible assets will be lifted.

Alternatively, this notice can be sent once the time limit has expired for the IRS to make a collection on a debt, or if the agency concluded the garnishment was a mistake. You are not the only one being sent the letter; your bank, employer, and any other financial institutions will be notified of your released levy. This will only benefit you, as it will increase your credit score and strengthen your eligibility for applying for a loan. You should keep a copy of this notice in your permanent records for future reference. If you received this letter intentionally or unintentionally, it is recommended that you call the IRS immediately to confirm its authenticity.

EXPLANATION OF IRS NOTICE OF LEVY

An IRS Notice of Levy is a letter sent to taxpayers who have not paid their back taxes and have an IRS lien placed against them. The IRS is notifying the delinquent taxpayer that they will begin collecting the debt using levy actions such as wage garnishment, property seizure, and bank account seizure. A notice of levy causes many problems for taxpayers. It means that the taxpayers’ accounts and assets may be frozen by the tax lien, which may prevent the possibilities of selling them or changing ownership of the items. The taxpayer only has 30 days in which to take care of the tax debt before the levy actions are taken. Failing to pay back the full amount of the debt after receiving an IRS notice of levy will mean that levy actions will start unless the necessary steps have been taken.

It’s important to note here that a levy is a legal seizure of your assets to use towards a taxpayer’s outstanding tax debt. They’re different from a lien, as a lien is a hold on assets, while a levy will actually take them away from the taxpayer.

Typically, there are lists of things the IRS will do before resorting to sending a notice of levy. They go as follows. First the IRS has assessed your account, decided that you have a certain amount owed, and then they will send you a notice that demands immediate payment. This is a tax bill they expect to be paid upon being received. If the taxpayer neglects to pay the amount issued, then the IRS will send a final notice of intent to levy accompanied by a notice of your right to hearing. They must also include an explanation for the issuing of the levy, the process in which the levy happens, and the alternatives the taxpayer has when dealing with collections. These documents are released thirty days prior to the levy being issued, allowing the taxpayer a month to respond promptly. These ‘before’ notices will be sent via certified mail and or delivered at the address the IRS has on file. In some cases, the IRS will hand deliver the notice to the taxpayer.

To put it simply, when the IRS has witnessed enough noncompliance and they decide it’s their time to do so. This means that the taxpayer has not paid their taxes nor have they taken the proper steps to make arrangements in doing so. The IRS then takes action and issues a levy against assets you own or assets that others do (for instance your wages given by your employer).

ITEMS AN IRS LEVY CAN BE ISSUED AGAINST

There are quite a few of things the IRS can levy once the notice has been delivered and there has been no correspondence within thirty days. In terms of what the government can legally take from a delinquent taxpayer, they include:

Garnish Wages – This means the IRS will demand that your employer garnish your wages and issue them towards your tax debt rather than to you personally. Depending on the severity of the levy, this can often remain in place until the tax debt is fully paid off.

Contractor or Vendor Payments – The IRS has all your information. When an agent is on the case, they can reach out to third parties who owe the levied taxpayer money and demand these payments are sent to the IRS instead.

OPM Retirement Benefits, SSA Benefits, and Employee Travel Advances – The IRS also has the power to take these perks from you and use them towards the entirety of your tax debt owed.

Bank Accounts – In the worst case scenario, the IRS can put a lien on your bank account and lock it from you. After forty five days, they can then demand that whatever money in your account is transferred directly to the IRS.

Commissions – Depending on the situation, if the taxpayer is going to be receiving commission from a certain project or legal endeavor, then the IRS will take action and claim the commission to help satisfy tax debt.

Property – Any piece of property that the taxpayer owns which could help satisfy their tax debt. This starts with a home and can go all the way to toy vehicles that could be used to satisfy tax debt. Any piece of property that the taxpayer owns which the IRS considers valuable, they can levy and use towards the outstanding amount owed.

Anything of Value – Truthfully, when the IRS has decided to take action, it’s possible that they can levy anything the taxpayer owns and use it towards the tax debt. Even possessions or holdings that are not considered assets to the taxpayer could be levied and used to resolve the amount owed.

It is important to understand the items that the IRS can levy. The main purpose of Notice LP68 is to let you know that the levy the IRS issued against you will be released and you don’t need to turn over any of your property to them.