IRS Levy & Seizure Resolution
The IRS just froze your bank account, garnished your wages, or threatened to seize your property. You need it stopped. We can help
North Star Law represents individuals and businesses facing IRS levies, wage garnishments, bank account seizures, and property seizure actions. We act quickly to stop active levies, negotiate levy releases, and resolve the underlying tax debt so the levies do not come back.
How We Stop an IRS Levy: Four Steps
Step 1: Emergency Assessment
You call us. We review your levy notice, identify the type of levy (bank, wage, or property), determine how much time you have to act, and assess the urgency. For bank levies, you have 21 days before the bank sends the frozen funds to the IRS. For wage levies, the garnishment continues every pay period until we get it released. We move fast because the situation demands it.
Step 2: Immediate IRS Contact
We file Form 2848 (Power of Attorney) and contact the IRS directly. Depending on the situation, we may request an emergency levy release based on economic hardship, file a request for a Collection Due Process hearing to suspend the levy, or begin negotiations for a collection alternative that will result in the levy being released. In most cases, we can stop or prevent additional levies within days of engagement.
Step 3: Resolution Strategy
Stopping the levy is the first step, not the last. We analyze your complete financial picture and determine which resolution strategy produces the best long-term outcome: an installment agreement, an offer in compromise, currently not collectible status, or, in some cases, bankruptcy. The goal is not just to stop today’s levy but to resolve the underlying debt so you are not back in the same position next year.
Step 4: Levy Release and Compliance
Once the collection alternative is in place, we secure a formal levy release from the IRS. We also ensure you are in full compliance going forward, because compliance is the condition that keeps levies from being reissued. All required returns filed, all estimated payments current, all terms of the agreement met.
Flat Fees. No Hourly Billing. Payment Plans Available.
We quote a fixed fee before we start. No surprise invoices. If you are in a levy emergency, we do not hold your case hostage while you figure out how to pay us. We offer payment plans so you can get representation now.
Call (832) 384-4526 for immediate assistance.
Types of IRS Levies and How They Work
Bank Levies
When the IRS levies your bank account, it sends a notice to your bank. The bank is legally required to freeze the funds in your account up to the amount of the tax debt on the date the levy is received. The bank holds the frozen funds for 21 days before sending them to the IRS. During that 21-day window, you can still act. If we contact the IRS and establish a basis for releasing the levy, the bank will release the frozen funds back to you.
A bank levy is a one-time seizure, not a continuous freeze. It captures what is in the account on the day the levy is served. However, the IRS can and will issue additional levies if the debt is not resolved. Getting one levy released without addressing the underlying tax problem is a temporary fix. We address both the immediate levy and the long-term resolution in every case.
Wage Garnishments (Continuous Levies)
An IRS wage levy is different from a bank levy in one critical respect: it is continuous. Once the IRS serves the levy notice on your employer, the employer must withhold a portion of your wages every pay period and send it to the IRS. This continues until the debt is paid in full, the levy is released, or it becomes unenforceable. The IRS determines the exempt amount, the portion of your wages you get to keep, using a formula based on your filing status and number of dependents. For many taxpayers, the exempt amount barely covers rent and groceries, and the levied portion can exceed half their gross pay.
Under IRC Section 6343(a)(1)(D), the IRS must release a levy if it is creating an economic hardship, meaning you cannot pay for basic living necessities like housing, food, utilities, medical care, and transportation. If the levy is leaving you unable to meet these expenses, we can request an emergency release on hardship grounds. We can also stop the levy by entering into an installment agreement, obtaining CNC status, or filing a CDP hearing request if you are still within the 30-day window.
Property Seizures
Property seizures are the most extreme collection action the IRS can take. Under IRC Section 6331, the IRS can seize and sell your home, your car, your business equipment, and virtually any other property you own to satisfy a tax debt. In practice, property seizures are relatively rare because the IRS must follow specific procedural requirements, including providing notice and an opportunity for a hearing, and because the economics of seizure often do not favor the government. But they do happen, particularly when the taxpayer has significant equity in real property and has ignored repeated collection notices.
If you have received a notice of seizure, you are past the warning stage. The IRS intends to take your property, and the timeline is short. This is an emergency that requires immediate legal intervention. We can file for a CDP hearing, request an emergency stay, or pursue other legal remedies to prevent the seizure while we work to resolve the underlying debt.
Federal Tax Liens vs. Levies: The Difference Matters
Many taxpayers confuse tax liens and tax levies, but they are fundamentally different. A federal tax lien is a legal claim against your property. It does not take anything from you. It attaches to all of your assets and gives the government a secured interest in your property, similar to a mortgage or a car loan. The lien is filed publicly and appears on your credit report, which can affect your ability to borrow, sell real estate, or refinance. But it does not seize your bank account, garnish your wages, or take your property.
A levy is the actual seizure. It is the enforcement mechanism that takes your property or income to satisfy the debt. A lien says “the government has a claim.” A levy says “the government is taking it now.”
Both liens and levies can be addressed through the same collection alternatives: installment agreements, offers in compromise, CNC status, and CDP hearings. When we resolve your tax debt, we also work to get federal tax liens released or withdrawn, which removes the public record and the credit report impact.
Collection Due Process Hearings: Your Right to Be Heard
Before the IRS can levy your wages, your bank account, or your property, it must send you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing under IRC Section 6330. This notice gives you 30 days to request a Collection Due Process hearing. If you file the request within 30 days, the IRS cannot proceed with the levy while the hearing is pending.
At the CDP hearing, you can propose any collection alternative available under the Internal Revenue Code. You can propose an installment agreement, an offer in compromise, CNC status, or challenge the underlying liability if you did not have a prior opportunity to do so. The hearing is conducted by the IRS Office of Appeals, which is independent from the collection division, and if the outcome is unfavorable, you can petition the Tax Court for judicial review.
If you missed the 30-day window, you can still request an equivalent hearing within one year, though it does not stop the levy or give you Tax Court review rights. This is why acting immediately when you receive the Final Notice is so important. The 30-day clock is the most time-sensitive deadline in IRS collections.
If you received a Final Notice of Intent to Levy, do not set it aside. Call us immediately.
The 30-day CDP window is your most powerful protection against IRS collection action. Once it expires, your options narrow significantly. We can file the CDP request, represent you at the hearing, and, if necessary, petition the Tax Court on your behalf.
When You Need to Act: The Warning Signs
The IRS does not levy without warning. There is a predictable sequence of notices that precedes enforced collection. Understanding where you are in that sequence tells you how much time you have and what your options are.
CP14 — Balance Due Notice.
This is the first notice. It tells you how much you owe and asks for payment. You still have time to set up a payment arrangement without any collection action.
CP501 / CP503 / CP504 — Reminder Notices.
These are follow-up notices with increasing urgency. CP504 is the first notice that mentions the possibility of a levy. At this stage, you should be actively working on a resolution.
LT11 / Letter 1058 — Final Notice of Intent to Levy.
This is the trigger for your CDP hearing rights. You have 30 days from this notice to request a hearing. If you do not act within 30 days, the IRS can levy your wages, your bank account, and your other property without further notice.
After the Final Notice — Active Collection.
If you did not respond to the Final Notice, the IRS can levy at any time. If a revenue officer is assigned to your case, collection activity will escalate further. Revenue officers have the authority to show up at your home or business, demand immediate payment, and initiate seizure proceedings. If a revenue officer contacts you, do not engage without legal representation.
Why North Star Law for Levy and Seizure Defense
When you hire North Star Law to stop an IRS levy, you get an attorney who is also a CPA with over 20 years of experience in tax practice. We understand the IRS collection process from the inside out, including how revenue officers evaluate cases, how the IRS calculates your ability to pay, and which resolution strategies produce the best outcomes for different financial situations.
We do not take a one-size-fits-all approach. A taxpayer with $30,000 in debt and stable income needs a different strategy than a taxpayer with $300,000 in debt and variable income. We analyze your financial picture using the same formulas and standards the IRS uses, determine which collection alternative produces the best result, and execute the strategy from start to finish.
We are admitted to the United States Tax Court, the U.S. District Court, and Bankruptcy Court for the Southern District of Texas, and multiple federal courts. If your case requires litigation, whether through a CDP hearing, a Tax Court petition, or a refund suit, we have the credentials and experience to take it there.
Flat fees. No hourly billing. Payment plans available.
Call (832) 384-4526 or schedule a free consultation.
Frequently asked questions
How long do I have to stop an IRS bank levy?
When the IRS serves a levy on your bank, the bank freezes your funds but holds them for 21 days before sending the money to the IRS. That 21-day window is your opportunity to act. If we contact the IRS and secure a levy release during that period, the bank releases the frozen funds back to you. After 21 days, the money is gone and can only be recovered through a refund claim, which is significantly harder. If you receive notice that your bank account has been frozen, call us immediately.
Can the IRS take my house?
Yes, but it is rare. Under IRC Section 6331, the IRS has the authority to seize and sell your home to satisfy a tax debt. However, the IRS must follow specific procedural steps before doing so, including providing written notice and an opportunity for a Collection Due Process hearing. The IRS generally pursues property seizures only when the taxpayer has significant equity, owes a substantial amount, and has ignored repeated collection notices. If you have received a notice of seizure, this is an emergency that requires immediate legal intervention.
Will filing a protest with IRS Appeals stop a levy?
Not automatically. Filing a protest with the IRS Office of Appeals does not suspend or prevent levy action. The only way to stop a levy before it is issued is to timely request a Collection Due Process hearing within 30 days of receiving a Final Notice of Intent to Levy. A CDP hearing request suspends the levy while the hearing is pending. If you missed the 30-day CDP window, we can still pursue a levy release through other channels, including hardship requests, installment agreements, or the Collection Appeals Program, but none of these carry the automatic suspension that a timely CDP request provides.
What is the difference between a one-time levy and a continuous levy?
A bank levy is a one-time seizure. It captures the funds in your account on the day the levy is served and that is it. However, the IRS can issue additional bank levies at any time if the debt remains unresolved. A wage levy, by contrast, is continuous. Once the IRS notifies your employer, the employer must withhold a portion of every paycheck and send it to the IRS until the debt is fully paid, the levy is released, or the collection statute expires. Both types of levies can be released through negotiation with the IRS, but the continuous nature of a wage levy makes it particularly urgent to resolve.
Can I negotiate with the IRS after a levy has already been issued?
Yes. A levy does not eliminate your right to negotiate a resolution. In many cases, the levy itself is what brings the taxpayer to the table, and the IRS expects to negotiate once you engage. We can request a levy release while simultaneously proposing a collection alternative such as an installment agreement, an offer in compromise, or currently not collectible status. Under IRC Section 6343, the IRS is required to release a levy if you enter into an installment agreement or if the levy is creating an economic hardship that prevents you from meeting basic living expenses. The key is engaging quickly and presenting a viable resolution — the IRS has no incentive to release a levy if there is no plan in place to address the underlying debt.