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 practice avoiding IRS levies before they start, 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:
An IRS bank account levy in California gives you just 21 days to act. During this time, you can:
- Request a levy release
- Submit financial hardship documentation
- Enter into a payment plan or settling tax debt with an 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
- Using Currently Not Collectible status to stop levies if you qualify under hardship
- 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
We also provide resources to explore more in Defend What’s Yours, helping taxpayers understand their rights and options before enforcement escalates.
Call (657) 218-5700 or request emergency help at www.orangecounty.cpa
Frequently Asked Questions
Can an IRS levy be stopped once it has started?
Yes. Even after a levy begins, you can negotiate an installment agreement, prove hardship, request Currently Not Collectible status, or submit an Offer in Compromise to stop future levies.
Can I get my money back after the IRS takes it?
In some cases. If you prove the levy created undue hardship or was issued in error, you may be able to request a refund of levied funds.
How quickly must I act to stop an IRS levy?
You must act immediately. Banks hold levied funds for 21 days, giving you a short window to resolve the issue before money is sent to the IRS.
What if my wages are already being garnished?
You can still request a levy release by negotiating a payment plan or proving financial hardship. Garnishment will continue until the IRS agrees to release it.
Does bankruptcy stop an IRS levy?
Yes. Filing bankruptcy generally triggers an automatic stay that halts IRS collection actions, including levies, though the tax debt may not be discharged.
Can I appeal a levy after it begins?
Yes. You can use the Collection Appeals Program (CAP) or request a Collection Due Process (CDP) hearing to challenge or modify a levy.
Can California agencies also levy wages and bank accounts?
Yes. The Franchise Tax Board (FTB) and Employment Development Department (EDD) can issue levies separately from the IRS for unpaid state taxes.
Should I get professional help if a levy has already started?
Yes. Time is critical once a levy is in place. A tax professional can contact the IRS immediately, negotiate a release, and prevent further 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.
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