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IRS Levies & Wage Garnishments
Release IRS Levies and Wage Garnishments
The IRS can seize bank accounts and garnish wages without going to court. If you have received a Final Notice of Intent to Levy or a levy is already in effect, immediate action is required.
Time-sensitive: 30-day CDP deadline
A Final Notice of Intent to Levy (CP90 or Letter 1058) gives you 30 days to request a Collection Due Process hearing. Missing this deadline eliminates your right to a pre-levy appeal and significantly limits your options.
IRS Levy Types
Bank Account Levy
The IRS seizes funds in your bank account up to the amount owed. Banks must hold the funds for 21 days before turning them over, providing a brief window to negotiate a release.
Wage Garnishment (Continuous Levy)
The IRS notifies your employer to withhold a portion of each paycheck. Unlike a bank levy, a wage garnishment is continuous until released. The exempt amount is based on your filing status and number of dependents.
Social Security Levy
The IRS can levy up to 15% of Social Security benefits through the Federal Payment Levy Program (FPLP).
Accounts Receivable Levy
For businesses, the IRS can levy money owed to you by customers or clients.
Asset Seizure
In serious cases, the IRS can seize and sell physical assets including vehicles, real estate, and business assets. Seizure requires additional IRS approvals and is less common than financial account levies.
Grounds for Levy Release
- The levy creates an economic hardship that prevents you from meeting basic living expenses
- You have entered into an installment agreement
- An Offer in Compromise has been accepted or is pending
- The IRS determines that release will facilitate collection of the liability
- The value of the levied property exceeds the amount owed and release will not hinder collection
- A Collection Due Process hearing has been requested
- The collection statute has expired
What Happens After a Levy Is Released
A levy release stops the immediate enforcement action but does not resolve the underlying tax debt. A permanent resolution — installment agreement, Offer in Compromise, Currently Not Collectible status, or another strategy — must be established to prevent future levies.
Levy in Effect? Act Immediately.
Bank levies have a 21-day hold period. Wage garnishments are continuous. Contact us to evaluate your options and begin the release process.
No resolution strategy is recommended until we have reviewed your transcripts and financial position. Eligibility depends on your specific facts.