Immediate steps to stop an IRS levy: a clear action plan

An IRS levy is a legal seizure of your property or rights to property to collect unpaid federal taxes (IRS, “IRS Levy”). When you receive a Final Notice — “Notice of Intent to Levy and Notice of Your Right to a Hearing” — you usually have 30 days to act before the IRS can seize bank accounts, wages, or other assets. The following steps lay out what to do right away and why each step matters. (Authoritative guidance: IRS levy overview: https://www.irs.gov/payments/irs-levy; Taxpayer Advocate overview: https://www.irs.gov/advocate/what-you-should-know-about-levies.)

1) Read the notice carefully and calendar the 30‑day deadline

The IRS final notice will identify the tax year(s), the balance due (including penalties and interest), and the date by which you must request a Collection Due Process (CDP) hearing to stop a levy. Missing the 30‑day window eliminates the automatic CDP protection and makes it harder to prevent collection actions. Record the notice date, the deadline, and the IRS contact number printed on the letter.

2) Request a Collection Due Process (CDP) hearing quickly (Form 12153)

If the notice includes your right to a CDP hearing, file Form 12153 (Request for a Collection Due Process or Equivalent Hearing) within 30 days. A timely CDP request generally prevents the IRS from levying while the appeal is pending. The CDP process lets you: ask for a collection alternative, request a discharge of the levy, or dispute the underlying tax liability. (IRS CDP information: https://www.irs.gov/appeals/collection-due-process-rights.)

Practical note from my practice: when clients file the CDP request immediately (and include basic financial documentation), the IRS often pauses active collection and gives time to negotiate.

3) Call the IRS Collections number on the notice — documented contact matters

Call the phone number on the notice to confirm balance, request options, and notify them you’ve submitted a CDP (if applicable). Keep a detailed log: date, time, agent name or badge number, and what was discussed. If the IRS agrees to an installment plan or suspension, ask for written confirmation.

4) Stop an active bank levy: move quickly but lawfully

If your bank tells you it received a levy, act immediately:

  • Contact the IRS levy technician listed on the notice and ask for a levy release. Explain financial hardship and request an expedited decision. The IRS may release a bank levy if it would cause