Tax Dictionary – Levy Release

IRS Definition

If the levy on your wages is creating an immediate economic hardship, the levy must be released. If the levy on your bank account or other account is creating an immediate economic hardship, the levy may be released. A levy release does not mean you are exempt from paying the balance. The IRS will work with you to establish a payment plan or take other steps to help you pay off the balance.

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If the IRS issues a levy on your wages, bank accounts or other property, you may qualify for a levy release, which will stop the levy.

Request a levy release if:

  • You paid your full tax balance.
  • You set up an installment agreement with the IRS that doesn’t allow a levy.
  • You can show that the levy is preventing you from paying your necessary living expenses.
  • You can show that releasing the levy will make it easier for you to pay the taxes.
  • The IRS issued the levy in error.
  • The IRS is considering an offer in compromise that you have applied for.
  • The IRS has run out of time to collect the taxes.

Learn what to do if you have an unpaid tax bill or related complications like a levy.

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