One of the most urgent questions taxpayers ask when the IRS begins taking their assets is, “Can I negotiate with the IRS once they start a levy?” Whether the levy affects your house, car, wages, or bank account, the fear of losing property can be overwhelming. The good news is that YES, you can still take action to stop an IRS levy even after it has been enforced.
You still have the right to appeal.
An IRS levy doesn’t mean the situation is final. Even if your bank account has been frozen or your wages are being garnished, you still have the legal right to appeal. Appealing an IRS levy gives you the chance to challenge the action, halt further collections, and in some cases, recover seized funds. The IRS must follow specific procedures before taking your property, and if those procedures weren’t followed, the levy may be lifted.
How to stop an IRS levy after it begins?
If the IRS has already taken action, acting quickly is essential. The faster you take action, the better your chances of protecting your assets. There are several ways to stop an IRS levy after it has started:
- Request a Collection Due Process (CDP) Hearing. If you file within 30 days of receiving a Final Notice of Intent to Levy, you can request a CDP hearing to appeal the IRS levy and present your case.
- File for an Equivalent Hearing. If you missed the CDP deadline, you may still be able to request an equivalent hearing to stop the levy and negotiate with the IRS.
- Prove Financial Hardship. Demonstrating that the levy is creating severe financial hardship can lead the IRS to release the levy or put your account in Currently Not Collectible status.
- Negotiate an Installment Agreement or Offer in Compromise. Even after a levy starts, you can work out a payment plan or settle your debt for less through an Offer in Compromise.
Can the IRS take your property permanently?
Many taxpayers fear that once the IRS seizes their property, they’ll never get it back. In reality, the IRS is required to give you multiple opportunities to appeal and resolve your tax debt before selling or keeping seized assets. This means you still have a window of time to stop the IRS levy, negotiate, and protect your property.
Final Thoughts
The biggest mistake taxpayers make is waiting too long. The IRS levy process moves quickly, and delaying action can result in losing access to your bank funds or continued wage garnishments. Knowing your rights and appealing an IRS levy as soon as possible can make all the difference in stopping the IRS from taking more than they should.
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
