IRS records show a tax was assessed and the account still has a balance due. Before issuing a levy, the IRS generally must send notices that explain the amount due, payment options and appeal rights, including a notice of intent to levy. If the account still shows a balance due and no other resolution is in place, the IRS may move forward with levy action.

The first thing to do is to check the return address to be sure the letter or notice is  from the Internal Revenue Service and not another agency or a scammer.

If you disagree with the IRS that you owe the debt, respond to the notice of levy and tell the IRS why you believe you don’t owe the debt. Be prepared to provide information supporting your position, such as IRS notices, examination reports, amended return, payment records, or additional supporting documentation. Depending on your timing and circumstance, you may be able to raise your arguments in a Collection Due Process (CDP) or Equivalent Hearing; or request an audit reconsideration. A timely CDP hearing request generally preserves your right to petition the U.S. tax court. If you disagree with the IRS Independent Office of Appeals (Appeals) determination. If your appeals request is late and Appeals grants an Equivalent Hearing, you generally have no right to judicial review by the United States Tax Court. See Publication 1660, Collection Appeal Rights and Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don’t Agree, for more information.

You need to figure out what payment options might work for your situation, and act to set up a payment plan, pay in full, propose an offer in compromise or request another alternative and request a levy release. You may need to provide financial information about your income, expenses and assets. Being proactive in addressing the tax debt may prevent additional penalty and interest charges and eliminate the need for the IRS to take further action to collect the balance. For specifics, see Levies on the TAS website and Revocation or Denial of Passport in Case of Certain Unpaid Taxes for further information.

If the levy is creating an economic hardship on you, meaning you’re unable to meet basic, reasonable living expenses, then contact the IRS at the number on the levy or notice immediately and ask for a levy release. Be prepared to explain your financial and provide financial information. A levy release does not remove the tax debt, you must still make arrangements to resolve the balance due.

Appeals is separate from and independent of the IRS Collection office that initiated the collection action. You can also ask that the IRS manager review your case informally. You can obtain the manager’s name and phone number by contacting the employee listed on your notice. IRS employees are required to give you their manager’s name and phone number. You can appeal through a Collection Appeals Program (CAP), including before or after the IRS places a levy on wages, bank accounts or other property, or if the IRS denies a request to release or return levied property. CAP is generally quicker and available for more collection actions, but you generally cannot go to court if you disagree with the CAP decision. For specifics, see Levies on the TAS website and Levy Relief on the TAS Roadmap. See Publication 594, The IRS Collection Process, and Publication 1660 for a full explanation of how to appeal a collection action.

If the tax being levied stems from the filing of a joint return and you believe your current or former spouse should be solely responsible for all or part of the tax, penalties, and interest, you may be eligible for relief as an Innocent Spouse. To request relief, fill out Form 8857, Request for Innocent Spouse Relief.

If you believe you have an acceptable reason for interest or a penalty to be removed or reduced, you may complete Form 843, Claim for Refund and Request for Abatement or send a signed statement to the IRS explaining your reasons. For specific instructions, see Notice 746, Information About Your Notice, Penalty, and Interest.