Quick summary

An IRS levy is a legal seizure of your property or income to collect unpaid taxes. If you receive a “Notice of Intent to Levy and Notice of Your Right to a Hearing,” the single most important deadline is the 30‑day window to request a Collection Due Process (CDP) hearing — do this quickly to stop most collection action while Appeals reviews your case. (IRS: Understanding Levies; IRS: How to Appeal a Levy.)

Step-by-step: How to challenge a levy

1) Read the notice and confirm the basics

  • Identify the notice date, the tax year(s) at issue, and the amount claimed. The notice should say it is a Notice of Intent to Levy and explain your right to a hearing. If the notice is wrong (wrong SSN, duplicate assessment, identity theft), document that immediately.
  • Don’t ignore the envelope: the 30‑day clock normally starts the day after the notice is mailed.

2) File for a Collection Due Process (CDP) hearing — Form 12153

  • If you want to stop the levy, file Form 12153 (Request for a Collection Due Process or Equivalent Hearing) within 30 days of the notice to preserve the strongest protection and often halt collection while Appeals considers your case (IRC §6330). The form is the standard way to request Appeals review. (See IRS Form 12153 and Collection Due Process guidance.)
  • What Appeals will consider: whether the IRS followed proper procedures and whether your proposed collection alternatives are reasonable (installment agreement, Offer in Compromise, request for release due to economic hardship, etc.).

3) Propose remedies to avoid the levy

  • Installment agreement: If you can pay over time, propose a monthly payment plan. For guidance on structuring affordable plans, see our guide: Setting Up an Affordable Installment Agreement with the IRS. (Internal link)
  • Offer in Compromise: If you can’t pay the full amount and meet tight eligibility rules, an Offer in Compromise may settle the debt for less. See When an Offer in Compromise Is Better Than an Installment Agreement. (Internal link)
  • Prove economic hardship: Show that the levy creates immediate economic hardship (unable to meet basic living expenses) and request a temporary release.

4) If funds were already seized (bank levy, wages)

  • Contact the IRS collection office that issued the levy and your bank. If the levy was issued in error, request an immediate release and refund. If it was valid but you qualify for relief (e.g., hardship, payment arrangement), the IRS can release the levy and return improperly seized funds in many cases.
  • If you believe the levy was improper and funds aren’t returned, you may have a right to file a claim for refund or sue for wrongful levy in federal district court after exhausting administrative remedies. Reference: IRS guidance on levies and appeals.

Missed the 30‑day window: what then?

If you miss the CDP deadline you still have options, but they are narrower. You can request an “equivalent hearing” from Appeals (file Form 12153) — Appeals has jurisdiction to consider many issues, though you may lose the right to judicial review in Tax Court for that lien/levy. You can also:

  • Negotiate directly with the IRS (Collection) for a payment plan, or
  • Request a levy release for economic hardship, or
  • Contact the Taxpayer Advocate Service (Form 911) if you face immediate financial harm and the IRS is not responsive.
    (See IRS Appeals: Collection Due Process and Equivalent Hearing.)

Common mistakes to avoid

  • Waiting to act: the 30‑day CDP window is the central timing trap.
  • Not gathering documentation: Appeals will expect current bank statements, pay stubs, proof of living expenses, and business records where relevant.
  • Assuming you must hire an attorney: you can represent yourself in CDP hearings, though experienced tax professionals improve outcomes.

Practical tips from experience

  • Start with Form 12153 and attach a short cover letter stating the relief you want (release, installment agreement, OIC) and the key facts.
  • If a bank account is levied, call the bank quickly; some banks place a short administrative hold and may return funds if there was a technical error.
  • Use the IRS Online Payment Agreement tool if an installment plan is appropriate — it often speeds release once approved.

Deadlines at a glance

  • Request CDP hearing (Form 12153): within 30 days of the Notice of Intent to Levy.
  • Equivalent hearing (Appeals): file as soon as possible if CDP deadline missed — different procedural limits may apply.

When to get professional help

  • Consider a CPA, enrolled agent, or tax attorney if the levy involves business assets, payroll tax disputes, or complex collection alternatives. In my practice, timely appeals and well‑prepared financial statements are the most frequent difference between a stopped levy and a costly seizure.

Authoritative resources

Internal resources

Professional disclaimer
This article is educational and does not constitute legal or tax advice. For guidance tailored to your situation, consult a qualified tax professional, enrolled agent, or tax attorney.