What comes before a levy
The IRS can't levy without warning. It must first send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (often Letter 1058 or LT11) at least 30 days before the levy. That notice is your most important opportunity: within those 30 days you can request a Collection Due Process hearing (Form 12153), which generally pauses the levy while your case is reviewed by the IRS Independent Office of Appeals.
Bank levies
When the IRS levies a bank account, the bank freezes the funds and holds them for 21 days before sending them to the IRS. That window exists so problems can be resolved. If the levy is creating an economic hardship, or another resolution is reached, the IRS can release it.
How levies get released
- An installment agreement or other resolution of the balance
- Economic hardship: the levy prevents you from paying basic living expenses
- Currently-not-collectible status when you can't pay anything right now
- The levy was issued in error, or the tax has been paid or the collection period has expired
What we do
We pull your IRS account transcripts, confirm what's owed and what notices were issued, file any appeal that's still available, and negotiate a resolution that gets the levy released. Then we work on preventing the next one.
Frequently asked questions
How much time do I have after a final notice of intent to levy?
Generally 30 days from the date of the notice to request a Collection Due Process hearing. Requesting a hearing in time generally stops the levy while the appeal is pending.
Can the IRS take everything in my bank account?
A bank levy attaches to the funds in the account when the levy is received, up to the amount owed. The bank holds the funds for 21 days before sending them, which leaves time to seek a release.
Will setting up a payment plan release the levy?
Usually, an installment agreement is a basis for releasing a levy, and the IRS generally won't levy while an agreement is in effect.
I missed the 30-day deadline. Is it too late?
No. You may still request an equivalent hearing within one year, and you can still negotiate a release with the collection function directly.