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.