Before an IRS tax levy is set on wages, bank accounts, tax refunds, etc., a Notice of Intent to Levy will be sent to the taxpayer, along with the person's rights to appeal the levy. The levy will be assessed if a person does not respond in time to negotiate an alternate means of collection through any other IRS tax resolution strategy, such as seeking an Offer in Compromise, filing for Currently Not Collectible status, etc., .



The levy will then continue on until the individual can fulfill one of the following. To pay the full tax liability, including interest and penalties is the easiest way to release an IRS tax levy. On the other hand, not all individuals have the luxury of making a choice on the previous choice, and have to follow other techniques. Entering into an Installment Agreement with the IRS is one choice, which entails the individual agreeing to pay the total liability in smaller payments over a prolonged period. It should be noted, nonetheless, that some Installment Agreements don't cause the IRS to release tax levies. Alternatively, someone may file for Currently Not Collectible status after the levy has been granted, meaning that the IRS believes that the levy is leading to severe economic trouble. And lastly, a person may publish documentation to show that, should the IRS release tax levies, the IRS could better collect on the tax liability.



In addition to actions a person may take to meet or stop an irs tax levy, there are a number of situations that will see the levy released. For example, provided that the statute of limitations expired prior to the serving of the levy, and the IRS is informed of this fact, then the levy will be dropped. Secondly, should the value of property being levied be greater than the tax liability, and releasing the levy on a part of the property could occur without affecting the capability to gather from the liability, then the levy will be released. This last situation is simplest to see in levies on bank accounts, from which the appropriate funds may be taken without continued seizure of the account.