LEVY RELEASE REQUEST LETTER

Taxpayer Information

URGENT — TIME-SENSITIVE REQUEST

For Bank Levies: Under IRC § 6332(c)(1), the bank must hold the levied funds for 21 calendar days from the date the levy is received before surrendering the funds to the IRS. This 21-day period is the window for requesting release. The 21-day period expires on: [__/__/____].

For Wage Levies: A wage levy (Form 668-W) is continuous — it attaches to all wages and salary until the levy is released by the IRS or the tax liability is fully satisfied (IRC § 6331(e)).

[__/__/____]

Internal Revenue Service
[________________________________]
[________________________________]
[________________________________]

Via Certified Mail, Return Receipt Requested
AND Via Fax: [________________________________]

If assigned Revenue Officer:
Revenue Officer [________________________________]
Internal Revenue Service
[________________________________]
[________________________________]
Fax: [________________________________]

Re: URGENT — Request for Release of Levy
Taxpayer: [________________________________]
SSN/EIN: [________________________________]
Tax Period(s): [________________________________]
Levy Notice: Form [________________________________] dated [__/__/____]
Third Party Levied: [________________________________]

To Whom It May Concern:

I write to urgently request the immediate release of the levy served upon [bank name / employer name / third party name] on or about [__/__/____] with respect to the federal tax liability of the above-named taxpayer for the tax period(s) identified above. This request is made pursuant to Internal Revenue Code ("IRC") § 6343(a)(1), which requires the release of a levy under specified circumstances, and Treas. Reg. § 301.6343-1. [This request is also made pursuant to IRC § 6343(b) for the return of wrongfully levied property, if applicable.]

The release of this levy is required because [the levy is creating an economic hardship / the liability has been paid / the collection period has expired / an installment agreement is in place / the levy was issued in violation of the taxpayer's rights / other ground described below]. I request that the IRS issue Form 668-D (Release of Levy/Release of Property from Levy) to [bank name / employer name] immediately.

I. LEGAL FRAMEWORK — AUTHORITY TO RELEASE LEVY

A. IRC § 6343(a)(1) — Mandatory Release Conditions

Under IRC § 6343(a)(1), the IRS shall release a levy (the word "shall" makes release mandatory, not discretionary) and shall promptly notify the person upon whom the levy was made that the levy has been released, if the Secretary determines that any of the following conditions exist:

☐ (A) Liability satisfied: The liability for which the levy was made has been satisfied (paid in full) or has become legally unenforceable.

☐ (B) Time has expired: Release of the levy will facilitate collection of the liability.

☐ (C) Installment agreement: The taxpayer has entered into an installment agreement under IRC § 6159 for the liability at issue, unless the agreement provides otherwise.

☐ (D) Economic hardship: The levy is creating an economic hardship due to the financial condition of the taxpayer.

☐ (E) Fair market value exceeds liability: The fair market value of the property exceeds the amount of the liability, and release of the levy on a part of the property could be made without hindering the collection of the liability.

B. Additional Grounds for Release

☐ (F) Wrongful levy (IRC § 6343(b)): The levy was wrongfully made because it attached property in which the taxpayer has no interest, or the property belongs to a third party.

☐ (G) Collection statute expired: The 10-year collection statute of limitations (IRC § 6502) has expired, making the liability legally unenforceable.

☐ (H) Procedural violation: The levy was issued without proper notice (Letter 1058, LT11, or CP504) or without providing the taxpayer with Collection Due Process rights under IRC § 6330.

☐ (I) Bankruptcy: The taxpayer filed a bankruptcy petition, triggering the automatic stay under 11 U.S.C. § 362.

☐ (J) Offer in Compromise pending: A valid Offer in Compromise (Form 656) has been submitted and is pending, and the IRS is generally prohibited from levying during the pendency of an OIC (IRC § 6331(k)).

☐ (K) Innocent Spouse claim: The taxpayer has filed a request for Innocent Spouse relief (Form 8857), and the IRS typically suspends collection against the requesting spouse during consideration.

☐ (L) Taxpayer Advocate intervention: The Taxpayer Advocate Service has issued a Taxpayer Assistance Order (TAO) directing the release of the levy.

II. PRIMARY GROUND FOR LEVY RELEASE

Select the primary ground and complete the applicable section:

Ground A: Economic Hardship (IRC § 6343(a)(1)(D); Treas. Reg. § 301.6343-1(b)(4))

☐ This ground applies

The levy is creating an economic hardship because it prevents the taxpayer from meeting basic, reasonable living expenses. Under Treas. Reg. § 301.6343-1(b)(4), economic hardship exists when "satisfaction of the levy in whole or in part will cause an individual taxpayer to be unable to pay his or her reasonable basic living expenses."

Financial Information:

Impact of the Levy:

The levy has [seized / frozen] $[________________] from the taxpayer's [bank account / wages / Social Security / other]. As a result, the taxpayer:

☐ Cannot pay rent/mortgage and faces eviction/foreclosure
☐ Cannot pay for food and basic necessities for the taxpayer and dependents
☐ Cannot pay for essential medical treatment or medications
☐ Cannot pay for child care needed to maintain employment
☐ Cannot pay utility bills and faces disconnection
☐ Cannot pay car insurance or transportation costs needed for employment
☐ Cannot pay court-ordered obligations (child support, alimony)
☐ Other specific hardship: [________________________________]

Number of dependents: [____]
Names and ages of dependents: [________________________________]

IRS Collection Financial Standards:

The IRS uses Collection Financial Standards to determine allowable living expenses (IRM 5.15.1.7). These standards include:
- National Standards for food, clothing, housekeeping supplies, personal care, and miscellaneous
- Local Standards for housing and utilities (based on county and family size)
- Local Standards for transportation (vehicle ownership and operating costs)
- Out-of-pocket health care expenses

The taxpayer's expenses [are within / do not exceed] the IRS Collection Financial Standards, demonstrating that the levy prevents payment of basic, reasonable living expenses.

Ground B: Liability Has Been Satisfied (IRC § 6343(a)(1)(A))

☐ This ground applies

The tax liability for which the levy was issued has been fully satisfied. Specifically:

• Total liability at the time of levy: $[________________]
• Payments made: $[________________]
• Credits applied: $[________________]
• Remaining balance: $[________________] ($0.00 or legally unenforceable amount)

☐ Proof of payment enclosed (canceled checks, bank statements, IRS payment confirmation letters)
☐ IRS account transcript showing zero balance enclosed

Ground C: Collection Statute Has Expired (IRC § 6502)

☐ This ground applies

The 10-year collection statute of limitations under IRC § 6502 has expired for the tax period(s) at issue:

☐ The CSED has passed, and the liability is legally unenforceable
☐ No waivers or extensions of the CSED were executed by the taxpayer
☐ IRS account transcript showing assessment date enclosed

Ground D: Installment Agreement in Place (IRC § 6343(a)(1)(C))

☐ This ground applies

The taxpayer has entered into a valid installment agreement under IRC § 6159, and the levy is inconsistent with the terms of the agreement:

• Installment agreement date: [__/__/____]
• Monthly payment amount: $[________________]
• Payments are current: ☐ Yes ☐ No
• Agreement confirmation letter enclosed: ☐ Yes

Under IRC § 6331(k)(2), the IRS is generally prohibited from levying during the period an installment agreement is in effect, unless the taxpayer is in default of the agreement.

Ground E: Release Facilitates Collection (IRC § 6343(a)(1)(B))

☐ This ground applies

Releasing the levy will facilitate the collection of the outstanding liability because:

☐ The levy is preventing the taxpayer from maintaining employment (wage levy causes employer to terminate)
☐ The levy is preventing the taxpayer from operating a business that generates income to pay the liability
☐ The levy has frozen funds needed to make installment agreement payments
☐ The taxpayer can enter into an installment agreement or pay a lump sum if the levy is released
☐ The levy on the current asset generates less collection than allowing the taxpayer to use those funds productively
☐ Other: [________________________________]

Proposed alternative collection arrangement:

[Describe the specific arrangement the taxpayer proposes as an alternative to the levy, such as an installment agreement, partial payment, or lump-sum settlement.]

[________________________________]
[________________________________]
[________________________________]

Ground F: Wrongful Levy (IRC § 6343(b))

☐ This ground applies

The levy was wrongfully served because:

☐ The levied property belongs to a third party, not the taxpayer
☐ The levy attached to property that is exempt from levy under IRC § 6334
☐ The levy was served on the wrong person or entity
☐ The levied property is held in trust for another person
☐ Other: [________________________________]

Third-party property claim:
- Owner of the levied property: [________________________________]
- Relationship to the taxpayer (if any): [________________________________]
- Evidence of third-party ownership enclosed: ☐ Yes

Under IRC § 6343(b), if the IRS determines that property has been wrongfully levied upon, it shall return:
- The specific property levied upon, OR
- An amount equal to the money levied upon, OR
- An amount equal to the proceeds from the sale of the property

The claim for return of wrongfully levied property must be made within 2 years from the date of the levy (IRC § 6343(b)).

Note: Third parties may also submit a wrongful levy claim using IRS Publication 4528 (Making an Administrative Wrongful Levy Claim Under IRC Section 6343(b)).

Ground G: Procedural Violations

☐ This ground applies

The levy was issued in violation of the taxpayer's procedural rights:

☐ The IRS did not send the required Notice of Intent to Levy (Letter 1058 or LT11) at least 30 days before the levy (IRC § 6331(d))
☐ The IRS did not provide notice of Collection Due Process rights (IRC § 6330) before issuing the levy
☐ The IRS did not send Notice CP504 (Notice of Intent to Seize) before levying
☐ The levy was issued during the 30-day period after the CDP notice, before the CDP hearing request deadline expired
☐ A CDP hearing was timely requested (Form 12153 filed within 30 days) and the levy was issued before the hearing was concluded
☐ The levy was issued during a pending Offer in Compromise (IRC § 6331(k))
☐ The levy was issued after the taxpayer filed for bankruptcy (violating the automatic stay under 11 U.S.C. § 362)
☐ Other: [________________________________]

III. PROPERTY EXEMPT FROM LEVY — IRC § 6334

Under IRC § 6334, certain property is exempt from levy:

☐ (a)(1) Wearing apparel and school books
☐ (a)(2) Fuel, provisions, furniture, and personal effects (up to $10,870 in value for 2025; adjusted annually)
☐ (a)(3) Books and tools necessary for trade, business, or profession (up to $5,430 in value for 2025; adjusted annually)
☐ (a)(4) Unemployment benefits
☐ (a)(5) Undelivered mail
☐ (a)(6) Certain annuity and pension payments (including Social Security — limited; see IRC § 6331(h))
☐ (a)(7) Workers' compensation
☐ (a)(8) Judgments for support of minor children
☐ (a)(9) Minimum exempt amount for wages, salary, and other income (based on filing status and number of exemptions — see Publication 1494)
☐ (a)(10) Certain service-connected disability payments
☐ (a)(11) Certain public assistance payments
☐ (a)(12) Assistance under the Job Training Partnership Act
☐ (a)(13) Residences (special procedures apply under IRC § 6334(a)(13) and (e); IRS must obtain court approval before seizing a principal residence)

If the levy attached to exempt property, it must be released to the extent of the exemption.

IV. SUPPORTING DOCUMENTATION CHECKLIST

The following documents are enclosed with this request:

General Documentation

☐ Copy of levy notice (Form 668-A, 668-W, 668-B, or other)
☐ Copy of all prior IRS notices related to the levy (Letter 1058, LT11, CP504, CP90, CP297)
☐ IRS account transcript(s) for the tax period(s) at issue
☐ Form 2848 (Power of Attorney and Declaration of Representative) — if represented
☐ Form 8821 (Tax Information Authorization) — if applicable

Economic Hardship Documentation

☐ Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals)
☐ Form 433-F (Collection Information Statement — simplified version)
☐ Proof of income (recent pay stubs — last 3 months, or most recent)
☐ Bank statements (last 3 months for all accounts)
☐ Mortgage/rent payment records
☐ Utility bills
☐ Medical bills and insurance documentation
☐ Child care expense documentation
☐ Court-ordered payment documentation (child support, alimony)
☐ Letter from landlord regarding eviction threat
☐ Letter from mortgage servicer regarding foreclosure
☐ Disconnection notices from utility providers
☐ Other evidence of hardship: [________________________________]

Liability Satisfaction Documentation

☐ Proof of payment (canceled checks, bank statements, IRS confirmation)
☐ IRS account transcript showing zero balance

Collection Statute Documentation

☐ IRS account transcript showing assessment dates
☐ Calculation of CSED with any applicable extensions

Installment Agreement Documentation

☐ Installment agreement confirmation letter
☐ Proof of current payments
☐ Form 9465 (if requesting a new installment agreement)

Wrongful Levy Documentation

☐ Evidence of third-party ownership (deeds, titles, account records)
☐ Affidavit of property ownership
☐ IRS Publication 4528 (Making an Administrative Wrongful Levy Claim)
☐ Form 2751 (Proposed Assessment of Trust Fund Recovery Penalty) — if relevant

Procedural Violation Documentation

☐ Evidence that required notices were not received
☐ Copy of Form 12153 (CDP hearing request) and proof of timely filing
☐ Bankruptcy petition and proof of automatic stay
☐ Offer in Compromise submission confirmation
☐ Proof of address on file with the IRS at the time of levy

V. REQUEST FOR FORM 668-D (RELEASE OF LEVY)

I request that the IRS immediately issue Form 668-D (Release of Levy/Release of Property from Levy) to:

Third Party (Bank/Employer/Other):
[________________________________]
[________________________________]
[________________________________]
Fax: [________________________________]

I request that the Form 668-D be transmitted by fax to the third party at the number listed above to ensure prompt release of the levied property.

VI. COLLECTION ALTERNATIVES

If the levy is released, I propose the following arrangement to address the outstanding tax liability:

☐ Full payment: I will pay the full outstanding balance of $[________________] within [____] days of the levy release
☐ Installment agreement: I request an installment agreement under IRC § 6159 with monthly payments of $[________________]
- ☐ Form 9465 enclosed
- ☐ I will apply online at https://www.irs.gov/payments/online-payment-agreement-application
☐ Partial payment installment agreement (PPIA): Due to financial constraints, I can pay $[________________] per month, which will not fully satisfy the liability within the CSED
- ☐ Form 433-A enclosed
☐ Offer in Compromise: I intend to submit an Offer in Compromise under IRC § 7122
- ☐ Form 656 and Form 433-A (OIC) will be submitted within [____] days
☐ Currently Not Collectible (CNC) status: I request that the account be placed in Currently Not Collectible hardship status due to my inability to make any payments at this time
- ☐ Form 433-A/433-F enclosed showing inability to pay
☐ Other arrangement: [________________________________]

VII. COLLECTION DUE PROCESS RIGHTS — IRC § 6330

A. CDP Hearing Request

If the taxpayer received a Notice of Intent to Levy (Letter 1058, LT11, or CP504/CP90/CP297) and has not yet exercised CDP hearing rights:

☐ I am filing Form 12153 (Request for a Collection Due Process or Equivalent Hearing) simultaneously with this levy release request
☐ The CDP hearing request was filed within 30 days of the levy notice date

At the CDP hearing before the IRS Independent Office of Appeals, the taxpayer may:
- Challenge the underlying tax liability (if not previously contested)
- Propose collection alternatives (installment agreement, OIC, CNC status)
- Raise issues of spousal defense
- Challenge the appropriateness of the levy action
- Argue that the levy is creating economic hardship

B. Equivalent Hearing

If more than 30 days have passed since the levy notice:

☐ I am requesting an Equivalent Hearing under Treas. Reg. § 301.6330-1(i)
☐ The request is made within 1 year of the levy notice date

Note: An Equivalent Hearing provides the same substantive review as a CDP hearing but does not preserve the right to petition the Tax Court if the determination is unfavorable. The levy also is not automatically suspended during an Equivalent Hearing.

C. Tax Court Review

If a CDP hearing determination is unfavorable, the taxpayer may petition the United States Tax Court for review within 30 days of the CDP determination notice (IRC § 6330(d)).

VIII. APPEAL RIGHTS

A. If Levy Release Is Denied

☐ Collection Appeals Program (CAP): Request an expedited appeal through the IRS CAP process by calling the IRS and requesting a manager conference, followed by a CAP referral
☐ Taxpayer Advocate Service (TAS): If the levy is causing significant hardship and normal channels are insufficient, contact TAS by filing Form 911 (Request for Taxpayer Advocate Service Assistance). TAS can issue a Taxpayer Assistance Order (TAO) directing the IRS to release the levy.
☐ CDP Hearing: If not yet exercised, file Form 12153 within 30 days of the levy notice
☐ Federal Court Action: In limited circumstances, the taxpayer may seek injunctive relief in federal district court under IRC § 7426 (if property of a third party is wrongfully levied) or under the general jurisdiction of the district court if the IRS acts in violation of the IRC

B. IRC § 7433 — Civil Damages for Certain Unauthorized Collection Actions

Under IRC § 7433, if any IRS officer or employee intentionally or recklessly, or by reason of negligence, disregards any provision of the IRC or any regulation promulgated under the IRC in connection with any collection of federal tax, the taxpayer may bring a civil action for damages against the United States in federal district court.

• Maximum damages for negligent acts: $100,000
• Maximum damages for intentional/reckless acts: $1,000,000
• The taxpayer must first exhaust administrative remedies

IX. PRACTICE TIPS FOR PRACTITIONERS

A. Responding to a Bank Levy

1. Act immediately: You have only 21 days from the date the bank receives the levy before the bank must surrender the funds to the IRS (IRC § 6332(c)(1)). Contact the IRS on the same day you learn of the levy.
2. Call the IRS: Contact the number on the levy notice or the assigned Revenue Officer. Explain the basis for release and ask for a fax-back release (Form 668-D).
3. Prepare Form 433-A/433-F: If claiming economic hardship, have the financial statement ready immediately. The IRS needs to verify that the levy causes hardship.
4. Request a hold: Ask the IRS to request that the bank hold the funds pending review.
5. Send this letter by fax and certified mail simultaneously: Time is critical.

B. Responding to a Wage Levy

1. Contact the IRS promptly: A wage levy is continuous and will attach to all future paychecks until released.
2. File all required returns: The IRS will not release a wage levy if the taxpayer has unfiled returns.
3. Propose an installment agreement: The most common basis for releasing a wage levy is agreeing to an installment agreement.
4. Complete the financial statement: Form 433-A or 433-F must be completed to support the hardship claim or to establish installment agreement terms.
5. Verify exempt amount: Ensure the employer is correctly calculating the exempt amount under IRC § 6334(d) using IRS Publication 1494 (Tables for Figuring Amount Exempt from Levy).

C. Social Security Levy

1. Under IRC § 6331(h), the IRS may levy up to 15% of Social Security benefits.
2. The Federal Payment Levy Program (FPLP) is used for automated levies on federal payments, including Social Security.
3. To request release, contact the IRS and demonstrate economic hardship.
4. If the taxpayer receives only Social Security income and has no other assets, CNC status is often appropriate.

D. Key IRS Forms and References

X. DECLARATION

I declare under penalties of perjury that the statements made in this letter are true, correct, and complete to the best of my knowledge and belief. I understand that any false or misleading statement, including falsifying financial information, inflating expenses, or failing to make full disclosure of assets, may result in denial of this request and additional penalties.

XI. CONCLUSION

For the reasons stated above, I respectfully and urgently request that the Internal Revenue Service release the levy served upon [________________________________] on [__/__/____]. The release of this levy is required under IRC § 6343(a)(1) because [the levy is creating economic hardship / the liability has been satisfied / the collection period has expired / an installment agreement is in place / the levy is wrongful / other].

I request that the IRS:

1. Immediately issue Form 668-D (Release of Levy) to [________________________________]
2. Transmit the release by fax to the third party at [________________________________] to prevent irreparable harm
3. [Return the wrongfully levied property/funds of $[________________] under IRC § 6343(b)]
4. [Accept the proposed collection alternative described in Section VI]
5. Confirm the release in writing to the taxpayer

Due to the time-sensitive nature of this request [the 21-day bank levy hold expires on [__/__/____] / the wage levy is causing ongoing hardship with each pay period], I request expedited consideration.

Please contact me immediately at [________________________________] to discuss this request. If additional information or documentation is needed, I will provide it promptly.

Thank you for your immediate attention to this urgent matter.

Respectfully submitted,

________________________________________
[TAXPAYER NAME]
[________________________________]
[________________________________]
[________________________________]
Telephone: [________________________________]
E-mail: [________________________________]

Authorized Representative (if applicable):

________________________________________
[REPRESENTATIVE NAME]
[TITLE / DESIGNATION (Attorney, CPA, Enrolled Agent)]
[FIRM NAME]
[________________________________]
[________________________________]
Telephone: [________________________________]
E-mail: [________________________________]
CAF Number: [________________________________]

Enclosures

[List all enclosed documents]

1. [________________________________]
2. [________________________________]
3. [________________________________]
4. [________________________________]
5. [________________________________]
6. [________________________________]

Mailing and Contact Information

If assigned a Revenue Officer: Send the request directly to the Revenue Officer and their manager at the local IRS office. Call the Revenue Officer to alert them that the request is being submitted.

If no Revenue Officer is assigned: Contact the IRS at:
- Individual accounts: (800) 829-1040
- Business accounts: (800) 829-4933
- Practitioner Priority Service: (866) 860-4259

Taxpayer Advocate Service (emergency assistance):
- Phone: (877) 777-4778
- Local TAS office: https://www.irs.gov/taxpayer-advocate

Sources and References

• IRC § 6331 — Levy and Distraint: https://www.law.cornell.edu/uscode/text/26/6331
• IRC § 6343 — Authority to Release Levy: https://www.law.cornell.edu/uscode/text/26/6343
• IRC § 6334 — Property Exempt from Levy: https://www.law.cornell.edu/uscode/text/26/6334
• IRC § 6330 — Collection Due Process: https://www.law.cornell.edu/uscode/text/26/6330
• Treas. Reg. § 301.6343-1 — Requirement to Release Levy: https://www.law.cornell.edu/cfr/text/26/301.6343-1
• Treas. Reg. § 301.6343-2 — Return of Wrongfully Levied Property: https://www.law.cornell.edu/cfr/text/26/301.6343-2
• IRM 5.11.2 — Serving Levies, Releasing Levies and Returning Property: https://www.irs.gov/irm/part5/irm_05-011-002
• Publication 594 — The IRS Collection Process: https://www.irs.gov/pub/irs-pdf/p594.pdf
• Publication 1494 — Tables for Figuring Amount Exempt from Levy: https://www.irs.gov/pub/irs-pdf/p1494.pdf
• Publication 4528 — Making an Administrative Wrongful Levy Claim: https://www.irs.gov/pub/irs-pdf/p4528.pdf
• Taxpayer Bill of Rights: https://www.irs.gov/taxpayer-bill-of-rights