Quick overview
A levy release for financial hardship restores access to funds or property the IRS seized when the levy makes it impossible for you (or your dependents) to meet essential living expenses. The IRS evaluates these requests using documentation of income, monthly expenses, and federal collection standards. Approval is not guaranteed, but timely, organized evidence and the correct forms greatly improve your odds.
Who should consider requesting a hardship release?
- People whose bank account has been levied and who cannot pay rent, utilities, or buy food.
- Taxpayers whose wages are levied and who lack funds to maintain basic living needs.
- Individuals facing urgent medical bills, recent job loss, or other emergency expenses that the levy worsens.
If your situation is urgent and you cannot reach a quick resolution through normal channels, the Taxpayer Advocate Service (Form 911) can help expedite a case that is causing significant financial difficulty (IRS, Levies). See the IRS guidance on levies for more details. (IRS, “Levies”)
Step-by-step: How to request a levy release for financial hardship
- Identify the issuing office and the notice number.
- Use the contact information on the levy notice (for example, the letter that told you the IRS intended to levy or that a levy was placed). Send your paperwork to that address or fax number so it is routed correctly.
- Gather the documents you will need. Typical documentation includes:
- Bank statements (last 2–3 months).
- Pay stubs and proof of unemployment or benefits.
- Current bills (rent/mortgage, utilities, medical, child care).
- A current, detailed monthly budget showing income and expenses.
- Any court orders for child support or other mandatory payments.
- Complete the required IRS forms. The primary form used for hardship release is:
- Form 9423, Request for Release of Levy (Hardship) — submit this with your supporting documentation.
- The IRS may also require a collection information statement such as Form 433-F or Form 433-A/B to evaluate your expenses and assets. Providing these proactively speeds review.
- Submit your request correctly.
- Mail or fax the completed Form 9423, your supporting documents, and any collection statements to the IRS office that issued the levy notice. If you don’t have that address, send materials to the address shown on the notice or follow submission instructions from IRS.gov’s levy pages.
- Follow up and escalate if necessary.
- Keep copies of everything you send, and document dates and names of any IRS representatives you speak with.
- Typical processing times vary. Some hardship releases are processed in a few days to a few weeks; more complex cases take longer. If you have urgent needs or are getting no response, contact the Taxpayer Advocate Service (Form 911) for case assistance (IRS, Taxpayer Advocate Service).
- If the IRS denies the request.
- You may be able to request a Collection Due Process hearing (Form 12153) if you received a notice of intent to levy. Consider negotiating an installment agreement or exploring an Offer in Compromise if you cannot pay in full. See our guide on Offers in Compromise for documentation and strategy: “Avoiding Common Mistakes on an Offer in Compromise Application”.
What the IRS looks for when deciding hardship
The IRS evaluates whether the levy prevents you from meeting your necessary living expenses. Examiners apply the IRS Collection Financial Standards (which include national standards for food, clothing, and housekeeping, and local standards for housing and transportation) when reviewing expenses. Show clearly that:
- Monthly income does not cover allowable expenses, and
- The levy will cause unavoidable hardship for you or dependents.
Cite all required documentation and explain unusual expenses—medical bills, recent job loss, or major repair—so the examiner understands your unique situation.
Practical documentation checklist (detailed)
- Signed and completed Form 9423.
- Copies of the levy notice and any IRS letters (LT11, CP504, or other notices).
- Most recent 2–3 months of bank statements (all pages).
- Most recent pay stubs or written employer verification of hours and pay.
- Benefit statements (unemployment, disability, Social Security).
- Lease or mortgage statement, utility bills, insurance premiums.
- Current month budget showing actual and necessary living expenses.
- Any medical bills or statements showing ongoing treatment and costs.
Where to send your documents
Always send your request to the IRS office or address listed on the levy notice. If you don’t have that information, use the IRS levies page for guidance or call the number on your IRS notice. If the levy was served by a private party (for state tax levies) follow the instructions from that agency.
Timeline and what to expect
- Intake and initial review: usually within several business days to a few weeks, depending on the IRS office workload and complexity of your case.
- Bank levies: if approved, some bank levies can be released quickly, but the timing for funds to be returned depends on the bank’s processing times and when the levy was satisfied.
- Wage levies: releasing a wage levy requires the employer to receive a release notice; that can take a pay cycle or two to reflect.
Note: Timelines vary and may change depending on IRS staffing and case complexity; check IRS.gov for current guidance. (IRS, “Levies” and “Release of Levy”).
Real-world strategy: how I approach these cases (professional insight)
In my practice, the most successful levy release requests are organized, concise, and attach a one-page hardship cover letter that summarizes the situation and highlights the most urgent facts: total monthly income, total monthly necessary living expenses, and the exact amount the levy is taking. Presenting a clear narrative up front saves reviewers time and reduces follow-up requests for missing documents.
I also recommend providing a suggested resolution: either a temporary hold while you find work, an affordable installment agreement amount, or an explicit request for a levy release to allow basic survival expenses. Where applicable, include documentation that you tried to reach an agreement (e.g., Form 9465 installment application) before the levy.
Frequently made mistakes to avoid
- Sending incomplete bank statements or failing to include all pages.
- Not addressing the specific IRS notice/office that issued the levy.
- Omitting a simple cover letter that explains the hardship in plain language.
- Assuming the IRS will automatically consider medical debt or student loans as allowable expenses—you must document and explain why they create immediate hardship.
Alternatives and next steps if a release is denied
- Request a Collection Due Process hearing (Form 12153) if you received a final notice.
- Apply for an installment agreement or Offer in Compromise if long-term inability to pay exists. Our internal guides on installment agreements and offers in compromise explain tradeoffs and documentation requirements: see “Avoiding Common Mistakes on an Offer in Compromise Application” and “Options for Taxpayers Facing a Bank Levy: Immediate Steps”.
Internal resources
- How to Release a Federal Tax Levy on Your Bank Account: https://finhelp.io/glossary/how-to-release-a-federal-tax-levy-on-your-bank-account/
- Options for Taxpayers Facing a Bank Levy: Immediate Steps: https://finhelp.io/glossary/options-for-taxpayers-facing-a-bank-levy-immediate-steps/
- Levy Release (background & process): https://finhelp.io/glossary/levy-release-2/
When to involve a professional
If your situation is complex—large balances, business levies, multiple levies, or if the IRS denies your request—consult a tax professional (CPA, EA, or tax attorney). A practitioner can prepare stronger financial statements, negotiate installment agreements, or represent you before the IRS or in Collection Due Process hearings.
Authoritative sources
- IRS — Levies: https://www.irs.gov/businesses/small-businesses-self-employed/levies
- IRS — Release of Levy / Levies newsroom guidance: https://www.irs.gov/newsroom/irs-issues-guidance-on-levy-release
- IRS — Taxpayer Advocate Service (Form 911): https://www.taxpayeradvocate.irs.gov/
Professional disclaimer: This article is educational and written for general informational purposes only. It is not legal, tax, or financial advice. For advice tailored to your circumstances, consult a qualified tax professional.
If you want, I can draft a one-page hardship cover letter template and a prioritized document checklist you can print and use.