by Jay Freeborne, Enrolled Agent
May 15, 2008

The IRS will agree to release a part or all of a bank levy if hardship can be proven. However, I have found now in two cases of mine that it is important that the IRS fill out the bank levy release form correctly.

Here is the language on the form:

"Under the provisions of Internal Revenue Code section 6343, all property, rights to property, money, credits, and bank deposits greater that $X are released from the levy. The levy attaches to only this amount."

This week, the IRS verbally agreed to release $1000 on $1631 that had been held up for a client. However, on the form above, they filled in $1000. So, the IRS only released $631.

Lesson learned.

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