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IRS Letter 668-D: Release of Levy or Lien

Letter 668-D is the IRS notification that a levy has been released. Form 668-D is sent to the party that received the original levy notice (your employer in the case of wage garnishment, your bank in the case of a bank levy), with you recei

By Michael Brennan·3 min read·Updated April 23, 2026
Informational Urgency
Letter 668-D is the IRS notification that a levy has been released. Form 668-D is sent to the party that received the original levy notice (your employer in the case of wage garnishment, your bank in the case of a bank levy), with you receiving a copy. The release means the specific levy action is ended — your employer can stop garnishing, or your bank can release held funds if any remain.

What Letter 668-D does not mean

Letter 668-D does not mean: the tax debt is forgiven; a federal tax lien is removed; future levies cannot occur. Release of a specific levy leaves the underlying debt intact and does not prevent future collection action. If the release was conditional (for example, on setting up an installment agreement), failing to meet those conditions can lead to re-initiated levy action.

Related: Form 668(Y) for lien release

Separately, Form 668(Y) is the Certificate of Release of Federal Tax Lien, filed when a lien is released or a lien's enforcement period has expired. This is different from Letter 668-D (which addresses levy release). A released lien stays in public records marked "Released"; a withdrawn lien is treated as if never filed.

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Frequently asked questions

Does Letter 668-D mean I no longer owe taxes?+

No. Letter 668-D indicates a specific levy is released — typically because you set up alternative resolution. The underlying tax debt remains until paid or settled.

Will my employer stop garnishing immediately?+

Yes — once the employer receives Letter 668-D from the IRS, wage garnishment must cease. There may be a brief lag between IRS issuance and employer action, but the release is effective when the employer receives the form.

Can the IRS levy again after 668-D?+

Yes, if circumstances change (you default on an installment agreement, for example). A single levy release does not prevent future levies on the same debt.

About the author

M

Michael Brennan

Senior Tax Policy Writer · Fresh Start Division Editorial

Michael Brennan is a Senior Tax Policy Writer at Fresh Start Division, focusing on IRS collections procedure, the IRS Fresh Start Program, and federal tax policy. Michael has written extensively on tax resolution for American taxpayers.

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