IRS Tax Levy Release


When the IRS issues a notice that it intends to levy and seize your assets you have 30 days to challenge the tax levy to attempt tax resolution or pay the amount due. If you cannot pay the tax debt in full before the IRS is scheduled to seize your assets, you may be able to remove the tax levy by setting up an installment plan with the IRS or by making other arrangements.

The best course of action is to work out a mutually agreeable solution with the IRS and avoid the levy in the first place. Levies allow the IRS to collect the money that it is owed. Therefore, if you can raise the cash to pay your debt in full, including penalties and interest, within a reasonable period, the IRS will release its levy right away.



The Best Ways to Release an IRS Tax Levy:


  • Enter an Installment Agreement. Negotiating an installment agreement releases tax levies immediately.
  • You can show undue hardship. The IRS may release a levy if following through would deprive you of the means to provide for your basic necessities such as food, housing and clothing. You must generally provide financial information to the IRS in order to demonstrate undue hardship.
  • You can be placed in Currently Not Collectible status. You may remain in Currently Not Collectible Status forever, but you must complete a yearly evaluation of your financial circumstances and provide that to the IRS every year. If you remain in Currently Not Collectible Status long enough (generally 10 years), the statute of limitations may run out and your tax obligation would be forgiven.
  • You can obtain a release of a tax levy by filing an Offer in Compromise (OIC).


If you demonstrate to the IRS that you will be more likely to be able to pay the tax you owe or if you wish to sell real estate or some other valuable asset, but cannot do so while a levy is in place, you may request a release. In such cases, the understanding is that you will apply all or part of the proceeds of the sale to pay your overdue tax bill.


We have the experience to put your case in the best possible position with the IRS. Call for a free tax consultation at 605-646-3585.


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