IRS Levy Release Help in Orlando

If the IRS has levied your bank account or your paycheck, timing matters. A bank must wait 21 days before it surrenders your money, and a wage levy keeps taking from every paycheck until it is released. Below you will find what to do first in each situation, the exact legal grounds the IRS uses to release a levy, and how I handle it for you.

Already have a levy, a garnishment or a final notice? Call (407) 531-8705 and tell me it is urgent. I will prioritize it.

When a levy or garnishment is active, the first steps are a signed Form 2848 Power of Attorney and a call from me to the IRS asking for a hold on collection. In many of my cases, once the Form 2848 is signed and I have called the IRS, collection has been put on hold within 24 to 48 hours. The IRS makes that decision, so I cannot promise it in any individual case.

Short answer: the IRS can release a levy, and under IRC 6343(a)(1) it must in these five situations:

• The liability is satisfied, or has become unenforceable because time ran out.
• Releasing the levy will facilitate collection.
• You entered an installment agreement (unless the agreement provides otherwise).
• The IRS determines the levy is creating an economic hardship due to your financial condition.
• The property’s fair market value exceeds the liability, and part of it can be released without hindering collection.

A release does not erase what you owe: the IRS says you must still make arrangements to resolve the debt or a levy may be reissued. To get a release, you contact the IRS and request it. If a levy has hit your bank account, start with the 21-day hold below.

I’m Peter Kici, an Enrolled Agent and a Marine Corps veteran, and I handle IRS collection cases for taxpayers across Orlando and Central Florida. Everything below is tied to the Internal Revenue Code, Treasury regulations, the Internal Revenue Manual (the IRS’s written procedures for its employees) and IRS publications cited in line. Where the IRS has discretion, I say so.

Which of these is happening to you right now?

• The IRS levied my bank account.
• The IRS is taking part of my paycheck.
• I received a notice that the IRS plans to levy.
• The levy leaves me unable to pay for basic needs.
• The IRS levied the wrong account, or levied when it should not have.

What do you do when the IRS levies your bank account?

If this is you: your bank told you the IRS served a levy on your account.

Do this now:

1. Do not wait out the hold. A release request has to be made and acted on inside the 21-day hold described below.
2. Call me. I will look at your IRS account and tell you which release ground fits your facts.
3. Gather the levy paperwork. The notice of levy and any IRS letters you have received.

What is the 21-day bank hold?

Under IRC 6332(c), a bank may surrender deposits only after 21 days after service of the levy. The regulation specifies 21 calendar days after the date the levy is made. During the hold, or any extension, the levy is released only upon notification to the bank by the IRS of a decision to release it. If the bank gets no such notification, it must surrender the deposits, up to the amount of the levy, on the first business day after the hold or extension expires. No withdrawals may be made on the levied deposits during the hold (Treas. Reg. 301.6332-3(c)).

So a release request has to be made and acted on inside that hold. Two cautions. “Bank” is defined by reference to IRC 408(n), and the manual says it includes credit unions, savings and loan associations and trust companies (IRM 5.11.4.2). I would not assume the same hold covers a brokerage account, and we verify that before advising anyone on timing. And the IRS can request an extension of the hold; the manual’s example is when additional time is needed to determine ownership of the funds (Treas. Reg. 301.6332-3(c)(1); IRM 5.11.4.3).

A bank levy is a snapshot. Under IRC 6331(b), a levy extends only to property possessed and obligations existing at the time of the levy; the manual notes exceptions for continuous wage levies and the specified payments in IRC 6331(h) (IRM 5.11.5.3). For a bank, the regulation says the levy applies to the funds on deposit when it is made, up to the amount of the levy, and not to later deposits (Treas. Reg. 301.6332-3(c)(3)). If the levied property is not sufficient to satisfy the claim, IRC 6331(c) lets the IRS levy again on other property as often as necessary until the amount due is fully paid.

Bank account levied? Your money is on a 21-day clock. Send me the notice and I will tell you, plainly, which release grounds fit your facts and what I would do first.

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How do you stop an IRS levy on your paycheck?

If this is you: your employer told you the IRS sent a levy on your wages.

Do this now:

1. Return the Statement of Dependents and Filing Status to your employer within three days. It determines how much of your pay is exempt.
2. Call me. I will look at what the IRS has assessed and tell you which release ground fits.
3. Bring the Form 668-W and any IRS letters you have received.

A wage levy is continuous. Under IRC 6331(e), its effect on salary or wages is continuous from the date it is first made until it is released under IRC 6343. The manual says it attaches to future payments until released, and that wages and salary include fees, bonuses, commissions and similar items (IRM 5.11.5.3). The exempt amount is determined under IRC 6334(a)(9) and 6334(d). Form 668-W includes a Statement of Dependents and Filing Status that the employer gives you to complete and return within three days; if it is not received by then, the exempt amount is figured as if you were married filing separate with no dependents, and you can give the statement to the employer later to change the exempt amount (IRM 5.11.5.4.1).

Wages levied? It takes from every paycheck until it is released. The sooner I have your notice and a signed Form 2848, the sooner I can call the IRS and ask for a hold.

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What if you only received a notice that the IRS plans to levy?

If this is you: you have a letter saying the IRS intends to levy, and nothing has been taken yet. The notice carries a date that matters.

Do this now:

1. Look at the date on the letter. A Collection Due Process hearing request is due by the date on the notice; for a proposed levy that is 30 days from the date of the letter.
2. Call me before that date. A timely request preserves your right to judicial review.
3. Do not ignore the notice. Send me the letter and I will tell you which route fits.

What is a notice of levy?

An IRS levy is a legal seizure of your property to satisfy a tax debt, and it can reach wages and money in a bank account (IRS levy page; Publication 594). Under IRC 6331(a), once you neglect or refuse to pay within 10 days after notice and demand, the IRS may collect by levy on property that is not exempt. The manual says a levy lets the government collect outstanding taxes without first going to court; the exception it names is seizure of a principal residence, which requires court approval (IRM 5.17.3.2).

A “notice of levy” is the document issued to your employer, your bank or another party holding your money or property. Before levying on wages or other property, the IRS must notify you in writing of its intention to levy, no less than 30 days before the day of the levy (IRC 6331(d)). It must also notify you in writing of your right to a Collection Due Process hearing, not less than 30 days before the day of the first levy for the unpaid tax and taxable period (IRC 6330(a)). Exceptions exist, such as jeopardy collections, where the hearing can follow the levy (IRC 6330(f); Publication 594).

What is a Collection Due Process hearing?

Request it on Form 12153, or a written request containing the same information, by the date on the notice; for a proposed levy that is 30 days from the date of the letter. A timely request preserves your right to judicial review, and you may petition the Tax Court within 30 days of the determination. If you miss it, you can request an Equivalent Hearing within one year of the notice, but you cannot go to court if you disagree with Appeals’ decision. A timely request suspends the levy actions that are the subject of the hearing (IRC 6330(e)). Publication 1660 lists economic hardship among the issues you can raise.

Full payment and an installment agreement are separate grounds under IRC 6343(a)(1)(A) and (C), and they can also stop a levy before it starts. While an offer for an installment agreement is pending, or an installment agreement is in effect, the IRS may not levy on that tax (IRC 6331(k)(2)); a pending Offer in Compromise has similar protection (IRC 6331(k)(1)).

Got a notice that says the IRS intends to levy? Do not let the date on it pass. Send me the letter. I will tell you which route fits your facts: a hearing request, an installment agreement, or something else.

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On what grounds does the IRS release a levy?

Whatever your situation, a release request has to rest on one of five grounds. The rule is IRC 6343(a)(1). The IRS shall release the levy upon all, or part, of the property levied upon, and shall promptly notify the person on whom the levy was made that it has been released, if:

• The liability is satisfied or unenforceable because time ran out. Paid in full, or the 10-year collection period (IRC 6502(a), plus any suspension the law provides) has lapsed (Treas. Reg. 301.6343-1(b)(1)).
• Release will facilitate collection. The regulation gives the director discretion to release the levy in all situations; the conditions it lists include an escrow arrangement, a bond, a payment equal to the interest of the United States in the property, or an agreement to extend the statute of limitations (Treas. Reg. 301.6343-1(b)(2)).
• You entered an installment agreement under IRC 6159, unless the agreement provides otherwise. Under the regulation, the IRS need not release if that would jeopardize the secured creditor status of the United States.
• The levy is creating an economic hardship due to the financial condition of the taxpayer. The regulation applies this ground to an individual taxpayer.
• The property is worth more than the debt. Its fair market value exceeds the liability and release of the levy on a part of it can be made without hindering collection.

The IRS’s plain-language list is on How do I get a levy released? Its manual also directs that a notice of levy that violates the Code or regulations must be released, for example a levy issued while the taxpayer’s Collection Due Process hearing is pending (IRM 5.11.2.3.1). A release of levy on any property does not prevent a later levy on that property (IRC 6343(a)(3)).

Can you get a levy released because it leaves you unable to pay for basic needs?

If this is you: the levy is taking money you need for rent, food, medical care or getting to work. Economic hardship is one of the five grounds.

Do this now: gather your income and your monthly living expenses, and call me. The IRS decides hardship from financial information you provide, and I help you present it accurately.

The regulation says the hardship ground applies if satisfying the levy, in whole or in part, will cause an individual taxpayer to be unable to pay reasonable basic living expenses. The director decides a reasonable amount and considers the information you provide, including age, employment status and history, ability to earn, number of dependents, food, clothing, housing, medical expenses, transportation, current tax payments, alimony, child support and other court-ordered payments, expenses necessary to produce income, the cost of living where you live, and extraordinary circumstances such as a medical catastrophe or natural disaster. Unique circumstances do not include an affluent or luxurious standard of living (Treas. Reg. 301.6343-1(b)(4)).

Two points matter in practice. First, good faith is required: the regulation says failure to act in good faith includes, but is not limited to, falsifying financial information, inflating actual expenses or costs, or failing to make full disclosure of assets. Second, when the IRS determines a levy is creating an economic hardship, the manual says employees are not to refuse, delay or understate the release amount as a means to secure other compliance, such as missing tax returns, and not to condition hardship relief on receiving delinquent returns (IRM 5.11.2.3.1.4). The manual calls these separate collection issues, so unfiled returns remain a problem to resolve apart from this levy.

For hardship, the manual says the decision requires financial analysis based on sufficient financial information. Its examples involve a Collection Information Statement, proof of monthly income and an eviction notice (IRM 5.11.2.3.1.4). The regulation lists the categories of expenses the director considers, so documenting those categories is where to start (Treas. Reg. 301.6343-1(b)(4)(ii)).

Can’t cover basic bills because of the levy? Hardship is a real ground for release, but it has to be documented honestly. I will go through your numbers with you and tell you if it fits.

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What if the IRS levied the wrong account, or levied when it should not have?

If this is you: the levy hit an account that is not yours, or you believe it was served prematurely or in violation of IRS procedure. Different rules apply depending on whose property it was.

What is a wrongful levy, and how do you get money back?

Under IRC 6343(b), if the IRS determines that property has been wrongfully levied upon, it may return the specific property, an equal amount of money, or an amount equal to the money received from a sale of the property. Property may be returned at any time; an amount of money may be returned at any time before the expiration of 2 years from the date of the levy. The manual describes a wrongful levy as one that improperly attaches property belonging to a third party in which the taxpayer has no rights, and its examples are a levy on a bank account other than the taxpayer’s and a sale of property that does not belong to the taxpayer (IRM 5.11.2.3.2 and 5.11.2.3.2.2).

A levy that is hurting you but attaches your own property is a different question. The manual calls a levy on the taxpayer’s property that is served prematurely or otherwise in violation of an administrative procedure or law an “erroneous” levy and points to IRC 6343(d) (IRM 5.11.2.3.2). IRC 6343(d) applies the return rules of subsection (b) as if the property had been wrongly levied upon when the IRS determines that the levy was premature or otherwise not in accordance with its administrative procedures; you entered an installment agreement, unless the agreement provides otherwise; the return will facilitate collection; or, with the consent of the taxpayer or the National Taxpayer Advocate, the return is in the best interests of the taxpayer (as the National Taxpayer Advocate determines) and the United States. Economic hardship is not on that list, and no interest is allowed under subsection (c) on a return under (d). Publication 1660 says a request to return levy proceeds must be made within 2 years from the date of the levy for levies made on or after March 23, 2017, citing IRC 6343(d).

Think the IRS took money it should not have? There is a two-year window to ask for money back in these cases. Send me the levy notice and I will check whether it was served correctly.

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How do you request a release?

The regulation allows a request in writing or by telephone (Treas. Reg. 301.6343-1(c)(1)). I generally do both: I call, then confirm in writing so there is a record. The request must include your name, address and taxpayer identification number; a description of the property levied upon; the type of tax and the period for which it is due; the date of the levy and the originating Internal Revenue district, if known; and a statement of the grounds for release. The IRS may require supporting documentation reasonably necessary to determine whether a condition requiring release exists (Treas. Reg. 301.6343-1(a)). For questions, Publication 594 lists the number on your bill, 1-800-829-1040 for individuals and 1-800-829-4933 for businesses.

What is Form 668-D, and how long does a release take?

The manual directs IRS employees to use Form 668-D, Release of Levy/Release of Property from Levy, to release a levy served on Form 668-A, 668-W or 668-R. It can release a levy in part or in full (IRM 5.11.2.3.4). If you are looking for an “IRS levy release form” or “bank levy release form,” Form 668-D is the release itself, and your step is the request. The manual says releases are generally mailed and may be faxed when a levy must be released quickly (IRM 5.11.2.3.3); for a hardship release, it says the release should be faxed or given to the taxpayer to provide to the levy source (IRM 5.11.2.3.1.4).

On timing, the regulation says the director must promptly release a levy if a condition requiring release exists, and the statute requires prompt notice to the party served (Treas. Reg. 301.6343-1(a); IRC 6343(a)(1)). The manual tells employees to release the levy as soon as one of the circumstances is identified, so payments are not received after the levy should have been released (IRM 5.11.2.3.1). The regulation’s 30-day figure applies to property scheduled for sale: the determination will be made, generally, within 30 days of a request made 30 or more days before the sale (Treas. Reg. 301.6343-1(c)(3)). I have not found a fixed number of days for ordinary wage and bank levies in the regulation or the manual, so I will not give you one.

What if the IRS says no?

If the director determines that no condition requiring release exists, the regulation requires the IRS to promptly notify you of the decision not to release the levy and the reason why (Treas. Reg. 301.6343-1(c)(4)). Your routes depend on the notice you received and when.

• Collection Due Process (CDP) hearing. If you still have hearing rights on your notice, see the section above on what to do when you receive a notice that the IRS plans to levy.
• Collection Appeals Program (CAP). If you disagree with an employee’s levy decision, you can ask for a conference with the employee’s manager; for a levy on wages or a bank account there is no deadline to ask, though the collection action may go forward if a conference is not requested within a reasonable time. If you still disagree, you can request Appeals review on Form 9423: let Collection know within 2 business days after the manager conference that you plan to submit it, and it must be received or postmarked within 3 business days of the conference or collection may resume. If you disagree with Appeals’ decision in CAP, you cannot proceed to court (Publication 594).
• Taxpayer Advocate Service. An independent organization within the IRS that helps taxpayers whose problems with the IRS are causing financial difficulties (1-877-777-4778, per Publication 594).

What do we do about a levy?

Publication 594 says that during the collection process, or an appeal before Appeals, you can be represented by an enrolled agent, among others, and the IRS says Form 2848 is used to authorize an individual eligible to practice before the IRS to represent you. I am an Enrolled Agent. When someone calls with a levy, the first move is facts, not forms:

1. Investigate the account. I pull your IRS transcripts and notices to see what is assessed and what collection steps the IRS has taken, and I check whether the levy was issued correctly.
2. Ask for a release. With a signed Form 2848 on file, I contact the IRS directly and, where the facts support it, ask that the levy be released while we build the case.
3. Match the ground to your facts. Hardship, an installment agreement, an error and a wrong account each have their own path.
4. Negotiate the resolution. A release solves this week. The longer answer may be an installment agreement, Currently Not Collectible status, an Offer in Compromise or an appeal, depending on what your income, expenses and assets show. The IRS makes the decisions, and I do not promise outcomes.

What you do: bring me the notice and the letters you have. What I do: work the case with the IRS and tell you plainly where you stand. If you do not need to hire anyone, I will say so.

For how we defend against seizures generally, see levy and asset seizure help and IRS collection actions defense. Regular versus continuing levies explains how the types differ, IRS tax relief services lists the resolution options, and IRS tax debt relief in Orlando, FL covers local help.

What are the most common questions about levy release?

What is a notice of levy?

The document the IRS issues to your employer, bank or other party, telling it to turn over your money or property.

Which form releases a levy?

Form 668-D. The manual directs IRS employees to use it to release a levy served on Form 668-A, 668-W or 668-R.

How do I get a levy removed?

Contact the IRS and request the release, in writing or by telephone, stating the ground under IRC 6343(a)(1) that applies: paid or expired, release helps collection, an installment agreement, economic hardship, or property worth more than the debt. The IRS may require supporting documentation reasonably necessary to decide.

Can I get IRS levy relief if I cannot pay?

Possibly. If the levy is preventing you from paying reasonable basic living expenses, the hardship ground may apply. Other routes are an installment agreement, or a Currently Not Collectible hardship determination, in which the IRS may suspend collection action based on the financial information you provide on Form 433-A or 433-B (IRM 5.16.1.2.9).

How do I stop a bank levy?

Act inside the 21-day hold. Unless the IRS has notified the bank to release the levy, or the hold is extended, the bank must surrender the deposits, up to the amount of the levy, on the first business day after the hold. Full payment, an installment agreement, documented hardship, or a levy that violates the Code or regulations are grounds for that release. No withdrawals may be made on the levied deposits during the hold.

How do I release a wage levy?

The same grounds apply. A hardship release can be partial: the manual’s example releases only enough of the levy to prevent the hardship. Return the Statement of Dependents and Filing Status to your employer within three days; if it is not received, the exempt amount is figured as if you were married filing separate with no dependents, though you can give the statement to the employer later to change it.

What is the difference between an IRS levy and a garnishment?

People say “garnishment” for a wage levy, and the IRS’s own levy page says a levy can garnish wages. The IRS’s authority is the levy in IRC 6331, available after notice and demand, and the manual says a levy lets the government collect without first going to court. A wage levy continues until released; a bank levy reaches the funds on deposit at service, after the 21-day hold. This page does not cover creditor garnishment.

How long does an IRS levy last?

A wage levy lasts until it is released, and the regulation says a continuing levy on wages must be released at the end of the collection period in IRC 6502. That period is generally 10 years from assessment, with suspensions. A bank levy reaches the funds on deposit when it is made. If levied property is not sufficient to satisfy the claim, IRC 6331(c) lets the IRS levy again on other property until the amount due is fully paid.

What if the IRS levied the wrong account?

It depends on whose account it is. If the account belongs to someone other than the taxpayer, the manual treats it as a potential wrongful levy under IRC 6343(b), and money may be returned at any time before the expiration of 2 years from the date of the levy. If the levy was premature or otherwise violated procedure or law, the manual calls it erroneous and says a taxpayer who claims that is entitled to a CAP review before the levy proceeds are turned over to the IRS.

Can I stop the IRS from levying again?

A release of levy on property does not prevent a later levy on that property, and the IRS says a levy may be reissued if you do not make arrangements to resolve the debt. The IRS may not levy while an offer for an installment agreement is pending or an installment agreement is in effect, or while an Offer in Compromise is pending, and a timely CDP request suspends the levy actions that are the subject of the hearing.

Your next step is a free confidential consultation with Peter.

The free confidential consultation is a 20 to 30 minute call with me, not an intake rep. I look at where your account stands, walk through which options are realistically on the table and which are not, and tell you plainly if you do not need to hire anyone.

What to bring: the notice of levy and any IRS letters you have received. If you do not have your records, call anyway. If we work together, the first step is usually a Form 2848 Power of Attorney so we work from the IRS record instead of guesswork.

Who you would be talking to: Peter Kici, EA, an Enrolled Agent and Marine Corps veteran, with 19 five-star Google reviews and a BBB A rating (BBB accredited since 2024).

Choose the easiest way to reach me:

• Call (407) 531-8705
• Book your free confidential consultation
• Request a free confidential consultation online
• Or send a message through our contact page

Free with the consultation: the guide The Ultimate Survival Guide for IRS Tax Issues & Trouble, written by Peter, so you understand the notices and options before we talk. Download it free, no obligation. Results depend on the facts of each case, and nothing on this page is a guarantee of an outcome.