How to have a tax levy released

By
Education & Training with Barry C. Nelson, CPA CPA NJ# 20CC01864400

The main focus of my practice is taxpayer representation involving IRS tax issues and compliance.  We can contact the IRS immediately to resolve your tax liability and request a levy release. The IRS will release a levy if it determines that the levy is causing an immediate economic hardship. If the IRS denies your request to release the levy, we can appeal this decision. We can appeal before or after the IRS places a levy on your wages, bank account, or other property. After the levy proceeds have been sent to the IRS, we file a claim to have them returned to you. We can also appeal the denial by the IRS of your request to have levied property returned to you.

The IRS is required to release a levy if it determines that:

  • You paid the amount you owe,
  • The period for collection ended prior to the levy being issued,
  • Releasing the levy will help you pay your taxes,
  • You entered into an Installment Agreement and the terms of the agreement don’t allow for the levy to continue,
  • The levy creates an economic hardship, meaning the IRS has determined the levy prevents you from meeting basic, reasonable living expenses, or
  • The value of the property is more than the amount owed and releasing the levy will not hinder our ability to collect the amount owed.

The release of a levy does not mean you don’t have to pay the balance due. You must still make arrangements with the IRS to resolve your tax debt or a levy may be reissued.

If you or someone you know is having an IRS issue, please feel free to contact me at (609)410-9154 or by email at bnelsoncpa@gmail.com

Comments (1)

Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Barry Nelson I am a Do-It-Yourself-er BUT I do have enough common sense to hire a pro like yourself when it comes to the IRS.

Aug 02, 2022 07:16 AM