Overview

An IRS levy lets the IRS seize assets (bank accounts, wages, Social Security, or other property) to collect unpaid taxes. The IRS will usually notify you in advance. If a levy has hit you, acting quickly—and using the right channels—often gets it released or reduced faster than waiting.

Key IRS resources: How to Get a Levy Released (IRS) and Understanding Levies (IRS). See the Taxpayer Advocate Service for help if the IRS process is causing undue delay (IRS, TAS).

Practical steps to get a levy released

  1. Read every notice and note deadlines
  • Check all IRS notices (CP504, LT11/Notice of Intent to Levy, etc.). You typically have 30 days to request a Collection Due Process (CDP) hearing after a Notice of Intent to Levy. Missing deadlines reduces your options. (See IRS: How to Get a Levy Released.)
  1. Call the IRS collection contact on the notice
  • Ask why the levy issued, confirm the outstanding balance, and request instructions for submitting a release request. Keep a written log of all calls: date, time, name, and what was agreed.
  1. Request a Collection Due Process (CDP) hearing if eligible
  • If you received a Notice of Intent to Levy and it’s within the time window, file Form 12153 to request a CDP hearing with the IRS Office of Appeals. A timely CDP request can stay (pause) collection while Appeals reviews your case.
  1. Ask for an economic hardship (financial) release
  • If the levy prevents you from paying basic living expenses, request a release for financial hardship. You’ll need to show monthly income, essential expenses, and how the levy leaves you unable to meet living costs. Use Form 433-F or provide similar financial documentation.
  1. Negotiate a resolution that triggers release

  • Installment agreement: The IRS may release a levy once an acceptable installment agreement is in place and initial payment terms are met. For details on structuring an agreement, see our guide to Setting Up an Affordable Installment Agreement with the IRS.

  • Offer in Compromise (OIC): If you can’t pay full tax, an approved OIC will result in levy release once accepted. Preparation and documentation are critical; see Preparing a Strong Offer in Compromise for practical tips.

  1. Challenge the levy if it was improper
  • If the levy targets exempt funds or is otherwise erroneous, ask the IRS to release it immediately and return funds. You can escalate to the IRS supervisor, Taxpayer Advocate Service, or file suit in U.S. Tax Court in limited situations.
  1. Follow up in writing and keep proof
  • After any phone agreement, send a confirming letter or fax to the IRS collection unit. Keep copies of all forms, emails, certified-mail receipts, and bank statements showing returned funds.

What to include in a release request

  • Taxpayer name, SSN or EIN, daytime phone
  • Copy of the levy notice or bank notice
  • Explanation (hardship, error, or resolution reached)
  • Financial statements (Form 433-F) if requesting hardship
  • Signature and contact information

Timing and what to expect

  • The IRS does not have a single guaranteed timeline to process release requests, and processing times vary. If the levy was improper, the IRS generally moves more quickly to release and return funds. If the IRS delays or refuses without clear cause, contact the Taxpayer Advocate Service (TAS) for case assistance.

Common mistakes to avoid

  • Ignoring notices: Non-response reduces legal options.
  • Assuming a levy will expire: Levies remain until resolved or legally released.
  • Missing documentation: Incomplete financials slow hardship requests.

When to call a tax professional or advocate

  • Complex cases (business levies, multiple years of unfiled returns, or unclear ownership of seized assets)
  • When the IRS refuses a reasonable hardship release
  • If you need to prepare an Offer in Compromise or a full financial statement

Practical tips from practice

  • Act immediately: early contact often stops the levy sooner.
  • Document every interaction with the IRS.
  • If funds are seized from a joint account, act quickly—joint-owner protections can be limited.

Related reading

Authoritative sources

Disclaimer
This article is educational and does not constitute legal or tax advice. For case-specific guidance, consult a qualified tax professional or attorney familiar with IRS collection procedures.