How to Request an IRS Tax Levy Release

What Is an IRS Levy?

First, it’s important to understand what a levy is. An IRS levy is a legal seizure of your property to satisfy a tax debt.

Unlike a lien—which is a claim against your property—a levy actually takes the property to pay the debt.

The IRS can levy:

• Your bank account

• Wages or salary

• Social Security benefits

• Retirement accounts

• Physical assets such as your home or car (though this is rare)

Before initiating a levy, the IRS will generally send you a series of notices, including a Final Notice of Intent to Levy and Notice of Your Right to a Hearing.

When Can You Request a Levy Release?

The IRS may release a levy if:

1. You paid the amount you owe.

2. The collection period ended before the levy was issued.

3. Releasing the levy will help you pay your taxes.

4. You entered into an installment agreement and the terms don’t allow for the levy to continue.

5. The levy creates an economic hardship, meaning it prevents you from meeting basic, reasonable living expenses.

Knowing when you’re eligible is key.

Even if the levy was legally issued, the IRS is required to release it under certain conditions.

Step-by-Step: How to Request an IRS Levy Release

Step 1: Understand Your Tax Situation

Before you request a release, get a clear picture of your tax status. You can:

• Call the IRS at 1-800-829-1040.

• Access your account online at IRS.gov/account.

• Request a transcript using Form 4506-T.

This will help you confirm how much you owe and whether you’re currently in collections.

Step 2: Determine the Type of Levy

Different types of levies require different approaches:

• Bank Levy: Typically one-time, but you have 21 days before the bank turns funds over to the IRS.

• Wage Levy: Continuous until the debt is paid or the levy is released.

• Social Security Levy: Usually ongoing through the Federal Payment Levy Program (FPLP).

Understanding the type of levy helps you respond appropriately and within the right time frame.

Step 3: Choose Your Method of Resolution

You can request a levy release in several ways, depending on your situation:

a) Pay in Full

If possible, pay your full balance.

The IRS will generally release the levy immediately after the debt is satisfied.

b) Set Up an Installment Agreement

If you can’t pay in full, you can apply for a payment plan.

Once accepted, the IRS may stop levy actions.

Submit Form 9465 (Installment Agreement Request) or apply online at irs.gov/payments.

c) Prove Economic Hardship

If the levy is causing financial hardship, complete Form 433-A (Collection Information Statement) or Form 433-F, showing your income, expenses, and assets.

Attach a written request explaining how the levy is affecting your ability to meet basic living needs.

Step 4: Contact the IRS

Once your documents are ready, contact the IRS. You can:

• Call the number listed on your IRS notice.

• Visit a local Taxpayer Assistance Center (TAC).

• Mail your forms and request to the address on the levy notice.

Be prepared to explain your situation clearly and provide supporting documentation.

Step 5: Submit a Formal Request (Optional but Recommended)

Although not always required, you can submit a written request for a levy release. Use:

• Form 911 if you’re facing significant hardship and want the Taxpayer Advocate Service (TAS) to assist.

• A personal letter if you’re dealing directly with a Revenue Officer.

In your request, include:

• Your name, Social Security Number, and contact info

• A copy of the levy notice

• A clear explanation of why the levy should be released

• Any supporting forms, such as 433-A or proof of hardship

Step 6: Consider Professional Help

If the process feels overwhelming, consider working with a:

• Certified Public Accountant (CPA)

• Tax Attorney

• Enrolled Agent (EA)

These professionals understand IRS procedures and can negotiate on your behalf.

What Happens After You Request a Release?

The IRS will review your request and supporting documents.

If approved, they will send a Notice of Levy Release to you and the financial institution or employer involved.

If your request is denied, you can appeal using:

• Collection Due Process (CDP) hearing

• Collection Appeals Program (CAP)

Both provide opportunities to present your case before a neutral IRS official.

Tips to Strengthen Your Request

• Act quickly: The sooner you respond, the better your chances.

• Be honest and specific: The IRS wants facts. Show your expenses, income, and hardship in detail.

• Stay compliant: Make sure you’re filing current tax returns—even if you can’t pay in full.

• Keep records: Save copies of all correspondence and forms submitted.

Final Thoughts

Requesting a levy release from the IRS may feel like a complex process, but you don’t have to face it alone. With preparation, honesty, and the right documentation, you can regain control of your finances.

Remember, the IRS is often willing to work with taxpayers who communicate openly and take steps to resolve their debt.

If you’re unsure where to start, reaching out to a tax professional or the Taxpayer Advocate Service can make a significant difference.

No matter your situation, there are options—and you have rights.