Can You Stop an IRS Levy After It Starts?

The Levy Hit—But It’s Not Too Late

If the IRS has already levied your wages, seized funds from your bank account, or is in the process of enforcing collection, you may feel like there’s nothing you can do.

But the truth is, you still have options.

While it’s always best to avoid a levy in the first place, you can stop or reverse IRS collection actions after they begin—if you act fast and follow the right procedures.

This blog explains how IRS levies work, what’s still possible after they’ve started, and the legal tools available to get your income or assets back.

What Is an IRS Levy?

An IRS levy is a legal seizure of your property or assets to satisfy a tax debt. There are different types of levies:

• Wage garnishment – continuous levy on your paycheck
• Bank account levy – one-time seizure (21-day freeze period)
• Asset or property seizure – rare, but possible

Related: IRS Levy vs IRS Lien – What’s the Difference?

Can You Stop a Levy That’s Already Happened?

Yes—depending on the type of levy and how long ago it was enforced.

✅ Bank Account Levy:

If you act within 21 days, you can:

• Request a levy release
• Submit financial hardship documentation
• Enter a payment plan or Offer in Compromise

After 21 days, the funds are sent to the IRS—but even then, you may be able to reverse the action under limited circumstances.

Related: IRS Bank Account Levy in California – What to Do When Your Funds Are Frozen

✅ Wage Garnishment:

IRS wage garnishment continues until the debt is paid or you intervene. You can:

• Request a levy release
• Apply for Currently Not Collectible
• Set up an Installment Agreement
• Prove economic hardship

Related: How to Stop IRS Wage Garnishment in California

✅ Asset Seizure or Property Levy:

You may be able to stop or reverse a seizure by:

• Demonstrating the asset is exempt or necessary for survival
• Filing an appeal or Collection Due Process (CDP) request
• Paying or settling the tax balance immediately

Related: IRS Collection Appeals Program (CAP) vs. CDP Hearings – What’s the Difference?

Common Grounds for Levy Release

The IRS may release a levy if:

• The levy creates economic hardship
• You enter a formal resolution
• The IRS made an error
• The statute of limitations is near expiration
• You file a valid CDP or CAP appeal

What Forms and Steps Are Required?

• Form 433-A or B – To show income, expenses, and hardship
• Form 12153 – To request a CDP hearing (if you’re still within 30 days of the levy notice)
• Direct IRS contact – To negotiate release or resolution through IRS Collections

We Help Orange County Taxpayers Stop IRS Levies After They Begin

At Boulanger CPA and Consulting PC, we:

• Respond to levy enforcement immediately
• Negotiate fast-track levy releases
• File CDP or hardship appeals
• Resolve underlying IRS debt for good

Call (657) 218-5700 or request emergency help at www.orangecounty.cpa

FAQ: Can You Stop an IRS Levy After It Starts?

Q: Is it too late to stop a levy once it hits?
A: No. If it’s a wage garnishment, it can be stopped or reduced. If it’s a bank levy, you have 21 days.

Q: Can I get money back after a levy?
A: In some hardship or error-based cases, yes—but it’s much easier to act before the IRS sends the money to itself.

Q: Will the IRS stop a levy if I request a payment plan?
A: Often yes—especially if your plan is approved or under review.

Q: Can a levy come back again later?
A: Yes. If the underlying debt remains unresolved, the IRS can issue additional levies.

📣 About the Author

Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.

He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.

With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.

Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.

Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.

📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.