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Releasing Levies and Levied Property

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Releasing a levy

We 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.
  • We determine that the levy is creating an economic hardship for you.
  • The fair market value of the property exceeds such liabiilty and release of the levy on a part of such property could be made without hindering the collection of such liability.

Releasing your property

Before the sale date, we 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

We can consider returning levied property if:

  • We levy before we send 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).
  • We did not follow our own procedures. 
  • We agree 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.

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Page Last Reviewed or Updated: 26-Sep-2014