An IRS levy is not a request — it is a seizure. Unlike a lien, which secures the government’s interest in your property, a levy actually takes it. The IRS can levy your bank account, garnish your wages, and seize physical assets. But a levy does not come without warning, and there are steps you can take at every stage.
The Warning System Before a Levy
Before the IRS can levy, they must send you a series of notices. It starts with a bill, then a Final Notice of Intent to Levy — typically a CP504 or LT11 — which gives you 30 days to respond. If you have not received that final notice, the IRS generally cannot levy yet. If you have, the clock is ticking.
What Stops a Levy
Several things can halt or release a levy. Entering into an installment agreement stops further collection and can result in a levy release. Filing for a Collection Due Process hearing within the 30-day window triggers an automatic stay. Demonstrating economic hardship — that the levy would prevent you from meeting basic living expenses — can result in a release or a Currently Not Collectible status. Even bankruptcy’s automatic stay can temporarily halt an active levy, though the underlying tax debt may survive the bankruptcy.
Bank Account Levies Have a Special Rule
When the IRS levies your bank account, the bank holds the funds for 21 days before turning them over. That window exists so you can resolve the issue — and if you act during those 21 days, you may be able to get the levy released and the funds returned.
Levy action is serious, but it is not the end of the road. The right response at the right time can change the outcome. A free consultation can help you understand your options before the next step is taken.