Releasing
a levy
The
IRS
must release your levy if
any of the following occur:
- You pay the tax, penalty, and interest you owe.
- We discover that the time for collection (the
statute of limitations)
ended before the levy
was served.
- You provide documentation proving that releasing
the levy will help us
collect the tax.
- You have an installment agreement, or enter into
one, unless the
agreement says the levy
does not have to be
released.
- The
IRS
determines that the levy
is creating a
significant economic
hardship for you.
- The expense of selling the property would be
greater than the fair
market value of the
property.
Releasing
your property
Before
the sale date, the
IRS
may release the property if:
- You pay the amount of the government's interest
in the property,
- You enter into an escrow arrangement,
- You furnish an acceptable bond,
- You make an acceptable agreement for paying the
tax, or
- The expense of selling your property would be
greater than the fair
market value of the
property.
Returning
levied property
The
IRS
can consider returning
levied property if:
- The
IRS
levies before it sends
you the two required
notices, or before your
time for responding to
them has passed (10 days
for the Notice and
Demand; 30 days for the
Notice of Intent to Levy
and the Notice of Right
to a Hearing).
- The
IRS
did not follow its own
procedures.
- The
IRS
agrees to let you pay in
installments, but we
still levy, and the
agreement does not say
that we can do so.
- Returning the property will help you pay your
taxes.
Returning the property is in your and the government's best interest.
