What information does payroll tax form 668-D provide?

Payroll tax form 668-D is indeed associated with the release of levy or property from a levy. This form is used to notify the relevant parties that an existing levy, typically imposed by the IRS to secure tax debts, has been released. When a levy on wages or property is lifted, the 668-D serves as official documentation confirming that the taxpayer is no longer subject to that levy. This is an important distinction for both the employer and the employee, as it impacts how payroll and taxation are handled moving forward.

Understanding this form is vital for payroll professionals because it directly affects compliance with tax regulations and the management of employee salary deductions. Proper handling of this form ensures that levied wages are released appropriately, allowing employees to receive their full earnings without reductions related to the levy, thereby maintaining accurate payroll records and fostering a good relationship with employees.