Releasing a levy

They must release your levy if any of the following occur:

• You pay the tax, penalty, and interest you owe.
• They 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 them collect the tax.
• You have an installment agreement, or enter into one, unless the agreement says the levy does not have to be released.
• They determine that the levy is creating a significant 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, they 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

They can consider returning levied property if:

• They levy before they 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).
• They did not follow their own procedures.
• They agree to let you pay in installments, but they still levy, and the agreement does not say that they can do so.
• Returning the property will help you pay your taxes.
• Returning the property is in your and the government’s best interest.