How to Get an IRS Levy Released

How to Get an IRS Levy Released

An IRS levy is one of the most serious actions the government can take to collect unpaid taxes. When a levy (aka garnishment) is issued, the IRS can seize your wages, bank accounts, or other property. Fortunately, there are clear steps you can take to get a levy released and regain control of your finances.

When Will the IRS Release a Levy?

The IRS is required to release a levy if any of the following apply:

• You pay your tax debt in full.

• The collection period ended before the levy was issued.

• Releasing the levy will help you pay your taxes.

• The levy is causing economic hardship (meaning you cannot meet basic living expenses).

• You enter into an approved installment agreement and the terms require the levy to be released.

• The value of the levied property is more than the amount owed and releasing it won't hinder collection.

Steps to Get a Levy Released

1. Contact the IRS Immediately

• Reach out as soon as you receive a levy notice. The sooner you act, the more options you'll have.

2. Pay Your Tax Debt in Full

• If possible, paying the full amount owed will result in an immediate release of the levy.

3. Set Up a Qualifying Payment Plan

• Enter into an installment agreement with the IRS. Ensure that the agreement terms specify the levy will be released.

4. Prove Economic Hardship

• If the levy prevents you from meeting basic, reasonable living expenses (such as rent, utilities, or food), provide documentation to the IRS. This can include eviction notices, utility shut-off warnings, or medical bills.

• Complete a financial information statement (Form 433-A or 433-F) to demonstrate your situation.

5. Show the Levy Was Issued in Error

• If the IRS levied exempt property, failed to give proper notice, or issued the levy while you were in bankruptcy or on an active payment plan, you can request a release based on these errors.

6. Appeal the Levy

• If your request for release is denied, you have the right to appeal before or after the levy is placed. File a Collection Appeals Program (CAP) request to challenge the IRS's decision.

Special Situations

• Wage Levies: Prove financial hardship or negotiate a payment plan to stop wage garnishment.

• Bank Levies: Act quickly—there is a 21-day window before the bank must send your funds to the IRS. Use this time to resolve the issue or prove hardship.

Important Reminders

• A released levy does not erase your tax debt. You must still resolve your underlying balance, or the IRS may reissue the levy.

• Documentation matters: The IRS requires detailed, accurate financial information—not just emotional pleas—to consider hardship or errors.

Facing an IRS levy is stressful, but you have options. By acting quickly, gathering the right documentation, and working with tax professionals like those at TaxResolve LLC, you can increase your chances of getting the levy released and protecting your assets.

If you need help, contact our team for a confidential consultation and let us guide you through the process.