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Levy: Seizure of Property (Part III)

Topic: Levy: Seizure of Property (Part III)

Reasons the IRS will “release” a levy

The Internal Revenue Code specifically provides that the IRS must release a levy if they determine that:

• You paid the amount you owe,

• The period for collection ended prior to the levy being issued,

• It will help you pay your taxes,

• You enter into an Installment Agreement and the terms of the agreement don’t allow for the levy to continue,

• The levy creates an economic hardship, meaning the IRS determined the levy prevents you from meeting basic, reasonable living expenses, or

• The value of the property is more than the amount owed and releasing the levy won’t hinder their ability to collect the amount owed.

Next week additional information on release of a levy….

(IRS Publication 594 and (TTT 07/14/2020)