Facing an IRS tax levy can be a terrifying wake-up call for any taxpayer. Whether it comes in the form of a wage garnishment, bank account levy, or seizure of retirement funds, the consequences of enforced IRS collection activity can be immediate and severe. However, just because you received a Final Notice of Intent to Levy does not mean all is lost. The Internal Revenue Code provides multiple procedural safeguards and legal avenues through which taxpayers, with the proper tax resolution technical assistance, can successfully challenge, delay, or remove an IRS levy. However, success depends on swift action, procedural compliance, and professional representation by a dual-licensed Tax Attorney and CPA.
If you have received an IRS tax levy notice, it’s time to contact an experienced Tax Lawyer who understands the levy process and solutions to prevent the seizure of your property, bank account, or garnishment of your wages. Our experienced tax professionals at the Tax Law Offices of David W. Klasing are highly skilled in stopping or removing IRS tax levies and minimizing the financial damage they can cause. To schedule a reduced-rate initial consultation with a dual-licensed Tax Attorney and CPA, call the Tax Law Offices of David W. Klasing at 888-310-3543 or contact us online today.
What Is an IRS Levy, and How Is It Different from a Tax Lien?
Taxpayers often confuse the term “levy” with “lien,” but they serve distinct legal functions. A tax lien is merely a legal claim the IRS places on your assets to secure the government’s interest in your property for an unpaid tax debt. It does not involve seizure. A tax levy, on the other hand, is the actual act of seizing your assets to satisfy the tax debt. Common targets of IRS levies include wages, bank accounts, investment portfolios, retirement accounts (IRAs and 401(k)s), and even federal benefits like SSA and SSDI payments. In some cases, the IRS may levy multiple sources simultaneously.
The IRS derives its authority to issue a levy under IRC § 6331, but before taking such drastic measures, the agency is required to follow a specific set of procedures:
- A tax must be assessed and legally due.
- The IRS must send a Notice and Demand for Payment.
- The taxpayer must have neglected or refused to pay.
- The IRS must issue a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before taking enforcement action.
Failure to respond to the final notice can result in immediate levy actions, and by that time, federal tax liens are likely already in place. Regardless of the nature or amount of the underlying tax obligation, the IRS will not hesitate to enforce collection through liens and levies if you fail to act. The failure to respond to official IRS notices—especially a Final Notice of Intent to Levy—can result not only in the loss of critical property and income but also in forfeiting your right to appeal outside of the IRS administrative process.
At the Tax Law Offices of David W. Klasing, we help clients proactively respond to levy threats, preserve appeal rights, and secure workable resolutions. Whether negotiating installment agreements, asserting financial hardship, or guiding clients through CDP or CAP hearings, our experienced team of dual-licensed Tax Attorneys and CPAs stands ready to minimize the damage, protect your rights, and help you navigate back into compliance with the least possible financial and legal exposure.
Collection Due Process (CDP) Hearings: Your First Line of Defense
If you receive an IRS Notice CP90, CP504, LT11, or L-1058, you have 30 days to request a Collection Due Process (CDP) Hearing by filing Form 12153. This hearing is one of the most effective tools to prevent an IRS levy from proceeding. Once requested, the IRS must pause all levy activity while your appeal is pending, and the 10-year statute of limitations on collections is tolled during this time.
A CDP hearing gives you the opportunity to challenge the levy and propose a viable collection alternative, such as:
- An Installment Agreement based on your ability to pay over time
- An Offer in Compromise (OIC) if you qualify to settle for less than the full amount owed
- A request for Currently Not Collectible (CNC) status if payment would create undue financial hardship
An IRS Settlement Officer from the Office of Appeals will conduct the hearing, often via phone, and will typically require submission of Form 433-A or 433-B, which discloses your income, assets, expenses, and liabilities. You must be current on all tax filings and estimated payments to qualify for relief.
If you miss the 30-day CDP window, you can request an Equivalent Hearing, which provides a similar review process but does not suspend the statute of limitations or grant access to Tax Court review.
At the conclusion of the CDP hearing, Appeals will issue a determination letter. If you disagree with Appeals’ determination, you may request judicial review of the determination by petitioning the United States Tax Court on or before the 30th day after the date of Appeals’ determination.
Administrative Remedies: Installment Agreements, CNC, and OICs
Even outside the CDP context, several administrative options can halt levy enforcement:
- Online Payment Plans are available for individuals who owe $50,000 or less and are compliant with filing obligations.
- In-Business Trust Fund Express Installment Agreements are streamlined arrangements for small businesses with payroll tax liabilities under $25,000.
- Collection Appeals Program (CAP) allows a taxpayer to challenge a levy without the same due process protections. CAP decisions are not appealable in Tax Court, and entering CAP may limit future options.
All options require documentation and careful preparation, and it would be wise to consult a dual-licensed tax attorney & CPA before engaging directly with the IRS. Working with our experienced dual-licensed Tax Attorneys & CPAs at the tax law offices of David W. Klasing can provide the guidance and peace of mind you need when facing an IRS levy. Whether you’re trying to stop a wage garnishment, release a bank account freeze, or prevent the IRS from seizing future payments, legal representation is critical. Our team will help you understand the risks you face, develop a personalized strategy for relief, and pursue the most effective remedy available—before it’s too late. Call our offices at (888) 904-4096 to schedule your first reduced-rate initial consultation today.
What If the IRS Has Already Levied My Wages or Bank Account?
If your wages are already being garnished, or your bank account has been frozen, it’s not too late—but time is critical.
- Wage garnishments and recurring levies on government benefits (e.g., Social Security) can usually be released immediately once you enter into a payment plan or are granted CNC status.
- However, bank levies operate differently. Under IRC § 6332(c), the IRS must wait 21 days after issuing a bank levy before receiving the funds. This period is your last chance to halt the seizure, but once the funds are sent to the IRS, they generally cannot be recovered unless you can prove you never owed the tax to begin with.
Also note that some levies, especially those on SSA or SSDI payments, may continue for a cycle or two even after the IRS has issued a release notice, due to processing delays by the paying agency or employer.
Importantly, submitting an Offer in Compromise after a levy has already taken effect does not stop wage garnishment unless the garnishment is separately released. While the OIC process automatically halts new levy actions on federal payments and bank/investment accounts, wage levies will continue during the OIC review period (which can last 90+ days). Therefore, it is often advisable to get any active garnishment released before filing an OIC.
Risks of Delay: Why You Need Immediate Legal Help
A tax levy is not just a collection tool—it is a symptom of serious underlying noncompliance. By the time the IRS takes enforcement action, it has likely filed federal tax liens against all of your known assets and income sources. If you fail to act promptly, you risk escalating enforcement, additional civil tax penalties, and even potential life-altering criminal tax exposure in cases involving willfulness or tax fraud indicators.
IRS agents are trained investigators. Anything you say or submit—even in good faith—can be used to expand the scope of enforcement or initiate a criminal tax referral. This is why you should never engage directly with the IRS if your situation involves unfiled returns, underreported income, or signs of potential tax fraud. The safest course of action is to engage a seasoned dual-licensed Tax Attorney and CPA who can lawfully protect your interests, maintain attorney-client privilege, and develop a sound resolution strategy.
Let the Tax Law Offices of David W. Klasing Fight the IRS Levy for You
At the Tax Law Offices of David W. Klasing, our uniquely qualified team of dual-licensed Civil & Criminal Tax Defense Attorneys and CPAs provides comprehensive, aggressive representation for taxpayers confronting IRS levy actions. Whether you’ve just received a Final Notice of Intent to Levy or are already subject to wage garnishments, bank account freezes, or Social Security levies, our professionals act swiftly and strategically to:
- Negotiate immediate levy and garnishment releases
- Structure installment agreements or secure Currently Not Collectible (CNC) status
- File and argue Collection Due Process (CDP) or Collection Appeals Program (CAP) hearings
- Submit Offers in Compromise tailored to your financial reality
- Protect your liberty and net worth by shielding against escalating civil or criminal tax exposure
If you’re already under IRS levy enforcement, chances are federal tax liens have been filed against your income and assets—even if you’ve never seen them. Delaying action can result in permanent loss of funds, lost appeal rights, and increased scrutiny by IRS Criminal Investigation Division. Our team doesn’t just stop levies—we proactively work to resolve your tax controversy and restore your financial stability.
As Criminal Tax Defense Attorneys, Kovel CPAs, and EAs, we operate as a one-stop strategic defense unit, blending elite legal acumen with forensic accounting capabilities. Do not attempt to resolve a tax levy on your own. If your wages are being garnished, your bank accounts frozen, or you’ve received a levy notice from the IRS, time is not on your side. Call us at (800) 681-1295 or contact us online today to schedule a reduced-rate initial consultation. We’ll help you challenge the levy, protect your assets, and move forward with confidence.
