How to Request a Collection Appeal to Stop an IRS Levy

Quick overview

When the IRS moves from notices to enforced collection (for example, a levy on wages or bank accounts), you have rights to ask Appeals to review that action. There are two primary appeal routes:

• Collection Due Process (CDP) — generally filed on Form 12153 within 30 days of the Notice of Intent to Levy. Filing CDP usually puts the levy on hold while Appeals considers your case. (IRS: Collection Due Process)
• Collection Appeal Program (CAP) — filed on Form 9423 to appeal certain collection actions when CDP does not apply. CAP can provide relief but the rules and deadlines differ. (IRS: How to Request a Collection Appeal)

In my 15 years helping taxpayers and business owners, timely filing and clear documentation are the difference between stopping a seizure and losing access to assets. Below I walk through the practical steps, timelines, documentation checklist, sample language, and follow-up actions.

Why this matters now

A levy can freeze your bank account, garnish wages, or allow the IRS to seize business assets. Stopping a levy quickly preserves cash flow and buying time to negotiate an installment agreement, offer in compromise, or a Currently Not Collectible (CNC) status. See IRS Publication 594 for an overview of collection actions. (IRS Pub. 594)

Step-by-step: How to request a collection appeal

1. Read the notice immediately

• Identify the exact notice you received (Common notices include CP504, LT11, or a Final Notice of Intent to Levy). Notices typically include specific appeal rights and deadlines. If the notice includes the “Notice of Your Right to a Hearing” language, CDP may be available.

1. Choose the right appeal path: CDP vs CAP

• File Form 12153 (Request for a Collection Due Process or Equivalent Hearing) to request a CDP hearing if you received a Notice of Intent to Levy with CDP rights. You generally must file within 30 days of the notice date to stay the levy. (IRS: Collection Due Process)
• File Form 9423 (Collection Appeal Request) if your situation qualifies for CAP — for example, you received a collection action without CDP rights or you need Appeals to review an IRS field collection office decision. CAP has its own timelines; consult the IRS page on how to request a collection appeal. (IRS: How to Request a Collection Appeal)

1. Gather documentation

• Proof of identity (copy of driver’s license, Social Security number).
• Copies of all IRS notices and any correspondence.
• Proof of income and expenses (pay stubs, bank statements, monthly bills).
• Business records if applicable (profit/loss statements, invoices).
• Documentation that supports your requested remedy (e.g., offer in compromise forms, hardship letter, proof of overpayment or incorrect assessment).

1. Complete the correct form and attach a clear explanation

• For CDP (Form 12153): Explain whether you dispute the underlying tax liability, request a collection alternative (installment agreement, offer in compromise, CNC), or need immediate release due to economic hardship.
• For CAP (Form 9423): State which IRS collection action you want reviewed, why it’s incorrect or unfair, and the remedy you seek (release the levy, modify the action, or accept an alternative). Be concise and include page references to supportive documents.

1. Submit on time and to the correct address

• The notice includes where to send the form. If you miss that, the IRS CDP/CAP pages list addresses and fax options. Keep proof of mailing (USPS certified mail return receipt or a dated fax cover sheet). If you submit electronically to the IRS Appeals intake office, get confirmation.

1. Request immediate relief for economic hardship

• If the levy will cause immediate financial hardship (e.g., inability to pay rent, purchase food, or meet necessary living expenses), ask for a levy release or emergency review. In practice I’ve asked Collections to consider a temporary release while Appeals evaluates the request and provided a three-month budget to show immediate need. The IRS may place your account in Currently Not Collectible (CNC) or release the levy pending the appeal. (IRS: Levy release information)

1. Follow up and prepare for the Appeals review

• Appeals may contact you for additional documents or schedule a telephonic or in-person conference. Keep recordings of phone calls, names, dates, and confirmation numbers. If Appeals accepts collection alternatives (installment agreement or offer in compromise), get the agreement in writing.

Practical timeline and what to expect

• Within the 30‑day CDP window: File Form 12153 — filing typically stays collection (levy) while Appeals considers your case.
• CAP filings: Deadlines vary. File as soon as possible after the collection action or notice.
• Appeals response: Initial acknowledgement usually within 30 days; case resolution timeline varies (30–90 days is common, but complex cases take longer).

Sample language to use in your appeal (short and direct)

“I am requesting a Collection Due Process hearing under IRC 6330. I dispute the collection action because [dispute reason: incorrect assessment / financial hardship / identity theft]. I request [release of levy / Currently Not Collectible status / installment agreement / offer in compromise]. Attached: copies of Notice [number], paystubs, bank statements, and proposed budget.”

Adapt this to Form 12153 or Form 9423 fields and attach supporting documents.

Documentation checklist (bring to Appeals or attach to form)

• Copy of the IRS notice that led to the levy.
• Completed Form 12153 or Form 9423.
• Recent pay stubs and bank statements (60–90 days).
• A one‑page hardship budget (monthly income vs expenses).
• Any tax returns or proof of payments that dispute the balance.
• Power of attorney (Form 2848) if a representative will speak for you.

Common outcomes of a successful appeal

• Release of the levy or suspension while Appeals reviews the case.
• Approval of an installment agreement or partial payment plan.
• Acceptance into Currently Not Collectible status (temporarily halting enforced collections).
• Full or partial acceptance of an Offer in Compromise.
• Denial of the appeal — if denied, you may still have limited collection alternatives or judicial review options.

What I see often in practice (tips from a CPA/financial educator)

• Don’t miss the 30‑day CDP window. Missing it limits remedies and increases risk of asset seizure.
• A well‑documented hardship budget matters more than emotion. Appeals officers work from documented facts — show your monthly cash shortfall.
• Use a representative: An experienced tax practitioner knows the right language and can often spot procedural defects that delay collection.
• If the levy is on a bank account and you have a valid defense (exempt funds, joint account issues), file immediately — banks often freeze funds and release policies vary. See our guide on how to release a federal tax levy on your bank account for immediate steps and sample letters.

(Internal link: 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/)

Also consider parallel negotiation for an installment agreement if Appeals is unlikely to accept CNC or OIC — our installment agreement guide explains types and costs. (Internal link: Installment Agreements Explained: Types, Qualifications, and Costs: https://finhelp.io/glossary/installment-agreements-explained-types-qualifications-and-costs/)

Pitfalls and common mistakes to avoid

• Filing the wrong form or submitting to the wrong address — keep proof of the receipt.
• Omitting key documents (paystubs, bank statements) that substantiate hardship.
• Relying only on verbal promises — insist on written confirmations.
• Waiting until the levy is enforced — early proactive appeals allow more remedy options.

If your appeal is denied

You’ll receive a written explanation. Options after a denial include:

• Requesting a meeting with Appeals (if available).
• Pursuing Ordinary Collection Appeal Rights (OCAR) or other administrative remedies.
• Evaluating judicial options such as the U.S. Tax Court (in limited circumstances) — consult a tax attorney.

Resources and authoritative references

• IRS — How to Request a Collection Appeal: https://www.irs.gov/individuals/how-to-request-a-collection-appeal
• IRS — Collection Due Process (CDP): https://www.irs.gov/appeals/how-do-i-request-a-collection-due-process-cdp-hearing
• IRS Publication 594, The IRS Collection Process: https://www.irs.gov/pub/irs-pdf/p594.pdf

Final checklist — what to do right now

• Read your notice and note the date.
• Within 30 days, decide whether CDP (Form 12153) applies — if yes, file immediately.
• If CDP does not apply, consider CAP (Form 9423) and file without delay.
• Prepare a one‑page hardship budget and copy all relevant documents.
• Consider signing Form 2848 (Power of Attorney) if you’ll use a tax representative.
• Keep records of all submissions and communications.

Professional disclaimer

This article is educational and does not constitute legal or tax advice for your specific situation. Tax collection and appeals rules are complex and fact-sensitive. Consult a qualified tax professional or attorney to evaluate your case and represent you before the IRS.

If you need specific forms or sample letters tailored to a bank levy, wage levy, or business-asset levy, I can provide templates and a short checklist for each scenario.