Levy Release

An IRS levy release is an action that halts the IRS’s seizure of a taxpayer’s assets, such as wages, bank accounts, or property, to satisfy unpaid tax debt. A levy is a legal action taken by the IRS after a taxpayer has failed to pay taxes or respond to notices. Once the IRS releases the levy, the taxpayer’s assets are no longer subject to seizure.

A levy can be released under certain circumstances, including:

• The taxpayer pays the full amount owed, including penalties and interest.
• The taxpayer enters into an Installment Agreement or Offer in Compromise.
• The taxpayer demonstrates that the levy is causing undue financial hardship.

Taxpayers must act quickly to request a levy release by contacting the IRS and providing evidence that supports their request. Once the levy is released, the taxpayer can regain control of their assets, but they must still work to resolve the underlying tax debt to avoid future enforcement actions.