Stopping a Pending Levy: Emergency Fixes and Timelines

Immediate checklist: first 24–72 hours

• Locate the notice. Check the notice of intent to levy or the CP/Letter number and the deadline for requesting a hearing.
• Note the deadline. You usually have 30 days from the date on the Notice of Intent to Levy to request a Collection Due Process (CDP) hearing (Form 12153) — file as soon as possible (IRS: Collection Actions).
• Call the IRS number on the notice. Ask to speak to the collection caseworker; get a case number and write down the representative’s name and badge number.
• Consider a Power of Attorney. If you’ll use a tax pro, complete IRS Form 2848 so they can negotiate on your behalf.

Emergency fixes that commonly stop or delay a levy

1. Request a Collection Due Process (CDP) hearing (Form 12153)

• Why: Filing Form 12153 within 30 days preserves your right to an independent hearing and often pauses collection (IRS — Collection Due Process).
• When to use: If you received a Notice of Intent to Levy and want the IRS to review alternatives such as an installment agreement or offer in compromise.

1. Ask for an immediate levy release for financial hardship

• Why: If the levy would prevent basic living expenses (rent, utilities, food, medicines), the IRS can release a levy for economic hardship (Currently Not Collectible or temporary hold).
• Timing: If approved, collection may be suspended quickly — often within 24–72 hours — but timing varies by IRS office and whether funds are already in a bank.

1. Propose or enter an installment agreement

• Why: A signed installment agreement that covers the tax debt generally prevents the IRS from levying while the agreement is in effect.
• How: You can apply online for many installment agreements (see our guide: How to Apply for an Online Installment Agreement) or negotiate with the IRS collections officer.

1. Submit an Offer in Compromise (Form 656) or request Currently Not Collectible (CNC)

• Why: An accepted Offer in Compromise will stop collection activity. CNC status pauses collection due to inability to pay but does not erase the debt.
• Note: Offers take time to evaluate; CNC can be a faster temporary solution. See our overview of options: Options for Resolving Tax Debt: Installment Agreements, Offers in Compromise, and CNC.

1. Innocent spouse relief if appropriate (Form 8857)

• Why: If the tax was caused by a spouse’s errors or omissions and you qualify, innocent spouse relief can remove liability and stop collection against you.

If the levy already hit your bank or wages

• Act immediately. Contact the IRS and the bank. If you have proof that funds are exempt (Social Security, unemployment, certain retirement benefits), tell the bank and IRS right away.
• Request a bank levy release. If you reach an agreement with the IRS (payment or hardship), ask for a levy release and provide the bank’s contact so the release can be processed.
• Expect timing variance. Banks and IRS processing times differ — a release may take 24–72 hours or longer depending on the bank and whether the IRS office authorizes the release.

Documents and information to have ready

• Copy of the levy/notice and date received.
• Recent pay stubs, bank statements, and monthly expense list.
• Completed Form 12153 (if requesting CDP), Form 2848 (POA) if using a representative, Form 656 for an offer, or Form 8857 for innocent spouse.

Typical timelines and realistic expectations

• 0–30 days: Deadline to file Form 12153 to preserve CDP rights. File immediately to maximize protections.
• 1–7 days: If you contact the IRS and propose payment or hardship, many levy releases or holds are negotiated within days, but not guaranteed.
• Weeks to months: Offers in Compromise can take months to evaluate. Installment agreements usually finalize faster.

Practical scripts and next steps (what to say)

• To IRS agent: “I received Notice [number] dated [date]. I want to request a Collection Due Process hearing and discuss an immediate hardship release. My goal is to set up a payment plan or short-term relief while we resolve this.”
• To your bank: “I received notice that the IRS served a levy on my account. Please hold withdrawals pending confirmation of a levy release and tell me what documentation you need.”

Professional tips from my practice

• Move fast and document everything. In my experience, clients who call the IRS within 24 hours and file Form 12153 get better short-term outcomes.
• File a POA (Form 2848) early. I often submit a POA immediately so I can negotiate without delay.
• Don’t assume a levy is final. The IRS regularly halts levies when a workable plan is proposed.

Common mistakes to avoid

• Waiting until the 30th day to respond; filing earlier gets you more options.
• Talking only to customer service — escalate to the collections office listed on the notice.
• Ignoring bank notices; a quick intervention can preserve exempt funds.

When to get professional help

• If the levy targets payroll, business accounts, or large balances, get a tax attorney, enrolled agent, or CPA to act on your behalf immediately.
• If you face criminal exposure (fraud or willful evasion), consult a tax attorney.

Authoritative sources and forms

• IRS — Collection Actions and Levies: https://www.irs.gov/newsroom/irs-offers-relief-on-levy-and-collection-issues and https://www.irs.gov/levy
• Form 12153 (Request for a Collection Due Process or Equivalent Hearing): https://www.irs.gov/forms-pubs/about-form-12153
• Form 656 (Offer in Compromise) and Form 2848 (Power of Attorney) — available at IRS.gov

Professional disclaimer: This article is educational only and does not replace personalized tax or legal advice. For decisions tied to your finances, consult a qualified tax professional or attorney.

If you want, I can draft a ready-to-file Form 12153 checklist or a short script you can call the IRS with — tell me whether you’ll represent yourself or authorize a POA.