When the IRS makes a mistake, what do we do? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

When the IRS makes a mistake, what do we do?

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in Office Management,Payroll Management

Q: We received a Notice of Levy for an employee on Form 668-A (ICS). It says it’s to collect a CIVPEN tax, and doesn’t allow the employee any exemptions. It also doesn’t tell us how much to withhold per pay period. The IRS can’t take all of this employee’s money, can it?

A: No. The IRS sent you the wrong form. Wage levies are sent to employers on Form 668-W. Form 668-A is sent to banks or a company’s Accounts Receivable department. A CIVPEN is a collection for a civil penalty. Contact the IRS rep listed on the levy to work out the next step.

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