FORMS: 10.1 Letter to Employer/Financial Institution in Receipt of IRS Form 668A/W Notice Of Levy

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The form below is intended to be sent to an employer who has just received an IRS Notice of Levy and who you want to instruct NOT to obey the fraudulent levy.  One of our readers sent this and reported that it effectively stopped his employer from honoring the illegal Notice of Levy for $22,000 from the IRS.  He sent a copy of this letter to his employer and then sent a copy of the first six chapters of our book along with an IRS form 911 (Taxpayer Adovcate Assistance) and they completely dropped his rather large deficiency.


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I have been notified that you are in receipt of Form 668-A/W, NOTICE OF LEVY, from the Internal Revenue Service. This letter is to educate you what the law requires of both you and me and to apprise you of the resulting rights and responsibilities of both of us under such circumstances. The NOTICE OF LEVY you are holding carries no legal authority and has no standing in law whatsoever as it is being applied here. You will notice that it contains Internal Revenue Code (IRC, or 26 U.S.C.) Section 6331 on the back of the form. However, the citation on the back of the form begins with paragraph (b) from that section and paragraph (a) is strangely absent. That is because paragraph (a) conveys the scope and authority of Section 6331, and that authority clearly does not apply here, as I will explain to you as we dissect paragraph (a) of that section, the complete text below.

Sec. 6331. - Levy and distraint 

(a) Authority of Secretary 

If any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it shall be lawful for the Secretary to collect such tax (and such further sum as shall be sufficient to cover the expenses of the levy) by levy upon all property and rights to property (except such property as is exempt under section 6334) belonging to such person or on which there is a lien provided in this chapter for the payment of such tax. Levy may be made upon the accrued salary or wages of any officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia, by serving a notice of levy on the employer (as defined in section 3401(d)) of such officer, employee, or elected official. If the Secretary makes a finding that the collection of such tax is in jeopardy, notice and demand for immediate payment of such tax may be made by the Secretary and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 10-day period provided in this section. 

1.        "... within 10 days after notice and demand,"
Accompanying this letter is my sworn affidavit stating that I have never received a properly executed Notice and Demand as required by IRC 6303, neither have I received a properly executed assessment pursuant to IRC 6203.

2.        "...on which there is a lien.."
There are no liens filed against me relating to this matter and I have requested a copy of all liens from the Internal Revenue Service under the Freedom Of Information Act (FOIA), 5 U.S.C. 552 and they have not been able to provide me with one.

3.        "...upon the accrued salary or wages of any officer, employee or elected official of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia, by serving a notice of levy on the employer (as defined in section 3401(d)).."  
I am not an officer, employee or elected official of the United States, the District of Columbia, or any agency or instrumentality, nor are you an employer as defined by IRC 3401(d), which is a federal employer. This clause clearly delineates exactly who is liable for levy, and in no way does it apply to you or me.

26 U.S.C. 3401(c ) Employee

For purposes of this chapter, the term ''employee'' includes [is limited to] an officer, employee, or elected official of the United States, a [federal] State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term ''employee'' also includes an officer of a corporation.

8 Federal Register, Tuesday, September 7, 1943, 404.104, pg. 12267

Employee:  “The term employee specifically includes officers and employees whether elected or appointed, of the United States, a state, territory, or political subdivision thereof or the District of Columbia or any agency or instrumentality of any one or more of the foregoing.

26 CFR 31.3401(c ) Employee: "...the term [employee] includes officers and employees, whether elected or appointed, of the United States, a [federal] State, Territory, Puerto Rico or any political subdivision, thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing.  The term 'employee' also includes an officer of a corporation."

4.        Signature/Title of Service Representative  The NOTICE OF LEVY is signed by _______________, with a title of________, and (*) such person is not lawfully authorized to issue such a document pursuant to IRC 7608. Paragraph (a) of 7608 authorizes ANY agent or officer of the IRS to make seizures for taxes due under subtitle E and other laws pertaining to alcohol, tobacco or firearms. However paragraph (b) outlines the enforcement authority for laws relating to internal revenue OTHER than subtitle E. Only a Criminal Investigator of the Intelligence Division or of the Internal Security Division is charged with enforcing any of the criminal provisions of the Code. Not only is this NOTICE OF LEVY not signed by an authorized officer, a levy is a civil action, not a criminal one. This same language is also found in the Texas Code of Criminal Procedure, 2.122, which states that only such an officer as listed in IRC 7608(b) can make seizures and then only in relation to felony offenses under the laws of the State of Texas. Also, Texas Labor Code, 61.018 prohibits an employer from withholding and/or diverting any part of an employee's wages without a lawful court order.  Furthermore, IRC 7401 prohibits any civil action for collection unless the Secretary authorizes it and the Attorney General directs that the action be commenced, which also has not been done in this case.  As a matter of fact, the agent who sent you the Notice of Levy refused to provide to me a copy of his Delegation Order showing that he had authority to levy.  His pocket commission is an administrative pocket commission (the serial number ends in “A”) instead of an Enforcement pocket commission (serial number ending in “E”), so he therefore has no lawful authority to execute distraint or levy.

5.        Final proof that none of this applies to me. As Title 26, United States Code has not been enacted into positive law, implementing or enabling regulations are necessary to confer the force of law ("For federal tax purposes, federal regulations govern". Dodd v. U.S., 223 F Supp 785; Lyeth v. Hoey, 305 US 188) Many of the IRC Sections are enacted into law through being implemented by the Code of Federal Regulations (CFR). The above named sections are ALL implemented by CFR Title 27 Part 70, as listed in the CFR Parallel Table of Authorities, CFR Index, which deals exclusively with taxation of alcohol, tobacco and firearms. Those regulations define the scope and authority of the above IRC sections, and again put the NOTICE OF LEVY and all other collection activities outside the jurisdiction in which it is attempted to be employed in this case and outside of the jurisdiction of the federal government under 40 U.S. C. 255 and Article 1, Section 8, Clause 17 of the U.S. Constitution.

It is your responsibility to ascertain that you are within the law and not exposing yourself to liability, for CFR Title 26 Part 301.6332-1(c) directs that

"...any person who mistakenly surrenders to the United States property or rights to property not properly subject to levy is NOT relieved from liability to a third party who owns the property...".

Therefore if you improperly surrender any of my property in the form of salary or wages, you can and will be sued for the damages, and the foregoing IRC sections are just a small percentage of the actual statutes and regulations which further confirm that the NOTICE OF LEVY does not apply in any case not related to alcohol, tobacco or firearms, and are more than sufficient to cause at the very least a reasonable doubt as to its validity. You are therefore ordered to pay all remuneration in the form of salary, wages fringe benefits, sick pay, vacation pay or any other compensation that is owed me or face civil and criminal prosecution. If you wish to protect yourself from punitive and intimidating harassment from the IRS, merely write to them stating that in the reading of their paperwork, there seems to be a discrepancy between what they are stating and your understanding of the law. Provide them with a copy of the checklist and ask them to show documented compliance with each section of it otherwise you cannot release any property or information regarding the subject of their inquiry. To do otherwise without full legal documentation showing compliance, you are exposed to liability for actual and punitive damages. It is the responsibility of them as demandant to guarantee that all laws are being obeyed, or to relieve you of liability by formally assuming liability themselves. Anything less which does not offer you full protection is unacceptable and cannot be honored.

Past history has shown, in EVERY case, that you will not receive any response to your letter, but neither will you hear any further demands to comply with any levy or seizure action. This has shown itself to be conclusive proof that the foregoing positions of law are valid, otherwise they would comply and therefore relegate the argument to the legal scrap heap.

[ (*) Alternate #4 when NOTICE bears no actual ink signature. Replace this section with existing first line.]

The NOTICE OF LEVY bears no valid signature, but rather is typed/rubberstamped with the name of the agent issuing the NOTICE. In all areas of law (common, statutory, commercial, admiralty, etc.) any document intended to convey legal authority or command is REQUIRED to be personally signed, in ink, by the individual issuing the document. As this NOTICE OF LEVY carries no original personal signature, it is therefore not valid and can carry no lawful authority. However, even if it was personally signed by the issuing agent, ... (continue with remainder of #4 beginning with "such person...")

Even if you incorrectly believe that you are authorized to honor a levy, you must abide by the following restrictions:

         Continuing levies can only be instituted on federal payments, not payment of private employers to their employees, according to 26 U.S.C. 6331(h)

         Levies may only be instituted on “taxpayers”, who are persons “liable for” tax, according to 26 U.S.C. 6331(e).  “nontaxpayers” may not be levied upon.  Note that there is no statute making anyone liable for Subtitle A income taxes.

         Continuing wage levies may not exceed 15 percent of a person’s salary.  See 26 U.S.C. 6331(h)(1).

         Social Security benefits may not be levied, in accordance with 42 U.S.C. 407(a).

If you violate any of the laws identified in this letter, I assure you that you will be sued civilly and held personally liable for criminal wrongdoing against my property rights.  If you have any questions about the content of this letter, all of the points made here are exhaustively documented in a free book called “The Great IRS Hoax: Why We Don’t Owe Income Tax” readily available for downloading from:

Very Respectfully,




Former SSN (no longer active)____________________




STATE OF _____________   )

COUNTY OF ___________  )

On __________________________ before me ___________________personally appeared ______________________ personally known to me (proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. 

I do hereby certify that I have served _______________________________________________(name of agency or person served) with a true copy of the within document (circle one) (personally)/(by Certified Mail with Return Receipt Requested), from/at _______________________________________________________________ (city and state mail was sent from).

Witness my hand and official seal.

Signature of Notary:_______________________________________

Certified Mail #:______________________________________



INSTRUCTIONS: Do not proceed beyond each step unless the answer to each question is YES. If the answer to ANY question is NO, the levy is not valid. Inform the IRS that you are unable to honor the levy until ALL legal requirements are met.

[ ] Is there a copy of the court ordered Warrant of Distraint and Notice of Lien included with the Notice of Levy? (Federal Rules of Civil Procedure #69)

[ ] Does the tax that the IRS claims is owed arise from taxable activities subject to miscellaneous excise taxes under Title 26 USC subtitle E, or those that would pertain to the enabling regulations of Title 27 CFR Part 70 (alcohol, tobacco and firearms), or are you a federal employer as defined in section 3401(d)(in one of the U.S. territories and responsible for administering provisions under 26 USC subtitle C)?

[ ] Was a valid Notice and Demand sent to the individual whose property is the target of the levy? (IRC 6331(a))

[ ] Has a valid Notice of Lien been filed with the appropriate court at least 10 days after the Notice and Demand was received and has the court issued a warrant of distraint pursuant to IRC 7403?

[ ] Has the IRS sent at least three notices to the individual asking for payment and has the individual refused to pay? (IRC 6303)

[ ] Has the IRS sent a Notice of Intent to Levy to the individual at least 30 days prior to the date on the Notice of Levy you received? (IRC 6331(d))

[ ] Is the Notice of Levy signed by a Criminal Investigator of either the Intelligence Division or the Internal Security Division of the IRS and is there a delegation order in existence giving that particular agent the authority to issue a Notice of Levy? (IRC 7608(b))

[ ] Is the Notice of Levy issued to a recipient (you) who is inside of the federal United States as required by 26 U.S.C. 7701(a)(9) and (a)(10), which is the only area subject to the territorial, legislative, or criminal jurisdiction of the United States Governement under 40 U.S.C. 255,  28 U.S.C. 1603, and Article 1, Section 8, Clause 17 of the U.S. Constitution?  The federal United States includes the District of Columbia, American Samoa, Puerto Rico, Guam, the Virgin Islands, and federal enclaves within the 50 states such as national parks, federal courthouses, and military bases.  It does not include any other area within the 50 states, as these areas are the equivalent of foreign countries as far as Subtitle A federal income taxes are concerned.

Foreign government:  “The government of the United States of America, as distinguished from the government of the several states.” (Black’s Law Dictionary, 6th Edition)

TITLE 28 > PART I > CHAPTER 13 > Sec. 297. 

Sec. 297. - Assignment of judges to courts of the freely associated compact states


The Chief Justice or the chief judge of the United States Court of Appeals for the Ninth Circuit may assign any circuit or district judge of the Ninth Circuit, with the consent of the judge so assigned, to serve temporarily as a judge of any duly constituted court of the freely associated compact states whenever an official duly authorized by the laws of the respective compact state requests such assignment and such assignment is necessary for the proper dispatch of the business of the respective court.


The Congress consents to the acceptance and retention by any judge so authorized of reimbursement from the countries referred to in subsection (a) of all necessary travel expenses, including transportation, and of subsistence, or of a reasonable per diem allowance in lieu of subsistence. The judge shall report to the Administrative Office of the United States Courts any amount received pursuant to this subsection

If all of the above conditions have been satisfied, the levy could be valid. However, if you turn over property in response to an improper levy or you do so outside of the jurisdiction of the federal government as identified above, the individual who owns the property can sue you personally for punitive as well as actual damages. (26 CFR 301.6332-1(c))