The IRS will release your levy/garnishment immediately, once you have entered into simple payment agreements.
If the IRS removes money directly from your bank account, it’s called a tax levy. If they take it from your paycheck, it’s a wage garnishment. Both actions are legal tools the IRS uses to collect unpaid taxes. While alarming, there are clear steps you can take to stop or release a levy or garnishment—usually by entering a payment agreement or resolving your back taxes.
A tax levy is the IRS’s legal seizure of your property or income to satisfy an unpaid tax debt. The IRS can take funds from bank accounts, wages, retirement income, real estate, vehicles, and other personal property. Levies are issued only after several notices and when other collection efforts have failed.
Before a levy begins, three conditions must be met:
The IRS sends a tax bill (Notice and Demand for Payment).
You fail to pay the tax owed.
The IRS sends a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy starts.
You have several options to remove or prevent a levy once it has started:
Pay the Balance in Full: Paying all taxes, penalties, and interest stops the levy immediately.
Request an Extension to Pay: If granted, you may get up to 120 days to pay, though active levies usually allow only about 60 days.
Set Up a Streamlined Installment Agreement: Call the IRS to arrange a monthly payment plan; the levy release can often be faxed to your employer or bank the same day.
Enter a Complex Installment or Special Program: Options like an Offer in Compromise or Currently Not Collectible status require detailed financial documentation and may take longer to process.
Bank levies include a 21-day holding period before funds are sent to the IRS, giving you a short window to act.
Always request an immediate levy release once a payment plan or extension is approved.
Complex agreements can delay release for weeks or months, so respond quickly to IRS document requests.
Navigating IRS procedures can be overwhelming. Our experienced tax professionals can evaluate your financial situation, negotiate directly with the IRS, and request a levy release on your behalf. Schedule a free consultation today or call 888-447-0388 to protect your income and resolve your tax debt.
