A levy is when the IRS takes your property to pay a tax debt. The IRS must release a levy in some cases, like when you set up a payment plan that does not allow it, or when the levy causes economic hardship.
Who it fits
People whose bank account, pay, Social Security or other property is being taken by the IRS.
- Who it fits
- Bank or pay seized
- Cost
- No fee. Call the IRS number on your levy notice right away.
- IRS form
- Form 12153 for a hearing, if your notice gives you that right
What to know first
When the IRS levies a bank account, the money is held for 21 days and then sent to the IRS.
If you paid, if the time to collect ran out, if you set up a plan that does not allow the levy, or if the levy causes economic hardship.
The levy keeps you from paying basic, reasonable living costs.
A release does not erase the balance. If you don't set up a way to pay, the IRS can levy again.
The IRS usually sends a notice of intent to levy and your right to a hearing at least 30 days before a levy.
You can appeal before or after a levy. Publication 1660 explains your appeal rights.
Common questions
Can I get money back after it went to the IRS?
You may file a claim to have levy money returned to you. If the IRS says no, you can appeal that too.
What can the IRS levy?
Wages, bank accounts, retirement accounts, Social Security, commissions and more. The IRS can also seize and sell a car, boat or house.
Source: IRS: What is a levy?
Is a levy the same as a lien?
No. A lien is a legal claim on your property. A levy actually takes it.
Source: IRS: What is a levy?
Results depend on your situation. Not every case qualifies.
