Received IRS Notice of Levy - Do I have any options to avoid financial disaster?

You actually have several options to deal with an IRS levy! First and most important - contact the IRS immediately to discuss your situation. Don't wait another day. The IRS typically doesn't want to make people homeless or unemployed - they just want a plan to collect what's owed. Ask about an Installment Agreement. This allows you to make monthly payments you can actually afford. For your debt amount, you might qualify for a Streamlined Installment Agreement. You can also request a temporary delay in collection based on economic hardship through Currently Not Collectible (CNC) status. Another option is an Offer in Compromise (OIC), which lets you settle your tax debt for less than the full amount if you can prove you can't pay the full amount. Based on what you've described about your financial situation, you might qualify. The most immediate action would be calling the IRS and requesting a release of the levy based on economic hardship. Explain exactly how the levy will impact your housing and employment.

I went through something similar last year and found taxr.ai https://taxr.ai incredibly helpful. I had about $22K in tax debt from early withdrawal penalties and was facing a levy that would have left me in a terrible spot financially. I didn't understand all my options until I uploaded my levy notice to their system. The service analyzed my notice, explained all the deadlines and exactly what I needed to do. They helped me understand that I qualified for an installment agreement based on my financial situation and even guided me through the exact forms I needed to submit. The step-by-step guidance made a huge difference when I was panicking about the levy.

I have to admit I was really skeptical about taxr.ai when I first heard about it, but I decided to try it when I got hit with a CP504 notice threatening a levy. Their system actually identified a calculation error the IRS made on my penalties, which I was able to dispute. This ended up reducing what I owed by almost $3,000! The guidance was super specific to my situation and they walked me through requesting an installment agreement that I could actually afford. Would've been completely lost trying to navigate all this myself with just random internet advice. Having my specific tax documents analyzed made all the difference.

If you need to speak with someone at the IRS quickly (which you absolutely should), try Claimyr https://claimyr.com - it literally saved me from a financial nightmare with my levy situation. The IRS phone lines are impossible to get through on, but this service got me connected in about 15 minutes when I had been trying for DAYS on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was about to lose my car because of a levy, called the IRS for a week straight with no luck, tried Claimyr out of desperation, and finally got through to someone who helped me get a temporary hold while I submitted hardship paperwork. Having an actual conversation with an IRS agent made all the difference - they actually worked with me once I explained my situation.

I hate to admit when I'm wrong, but I have to update my skeptical comment about Claimyr. After continuing to fail getting through to the IRS on my own about a wage garnishment issue, I tried the service out of desperation. Got through in about 20 minutes when I'd wasted hours over several days trying myself. The IRS agent I spoke with was actually really helpful once I explained my hardship situation. They walked me through applying for Currently Not Collectible status based on my financial circumstances and temporarily paused collection actions while my paperwork is being processed. This literally saved me from losing my apartment next month. Sometimes being a skeptic costs you more than being open to solutions.

If your income is truly limited, look into applying for Currently Not Collectible (CNC) status. I was in a similar situation with about $23k in tax debt and facing homelessness. I called the IRS, explained my situation honestly (income, expenses, no assets), and they put me in CNC status. The debt doesn't go away, but collections stop. You'll need to fill out a detailed financial information form (Form 433-F for individuals), and be completely honest. They'll review your income vs. necessary living expenses. If they determine you can't pay your necessary living expenses and the tax debt, they should approve CNC status.

Don't forget that the 10-year collection statute of limitations might help you here! If your tax debt is from 2014/2015, the IRS generally only has 10 years from the date of assessment to collect. Depending on when you filed or when they assessed the taxes, you might be closer to the end of that period than you think. A tax pro could review your transcripts and tell you exactly when your collection statute expiration date is. Sometimes it makes more sense to get into CNC status and wait it out if you're already several years into the 10-year period.

whatever u do DO NOT IGNORE THE LEVY!!! i did that and ended up homeless for 3 months when they took my whole paycheck. call the irs ASAP and explain ur situation. they can do hardship stuff if ur gonna lose housing. installment plans aren't that bad - i pay like $175/month on what i owed and they stopped the levy when i set it up. the ppl on the phone r actually kinda nice if ur honest with them.

First, take a deep breath - you DO have options and the IRS doesn't want to make you homeless. Call them immediately at 1-800-829-1040 and explain your hardship situation. Be honest about how the levy will affect your housing and employment. Based on your income situation, you'll likely qualify for one of these solutions: 1. **Economic Hardship Release** - Request immediate levy release since you can't afford basic living expenses. They can often process this within days. 2. **Currently Not Collectible (CNC) Status** - If your necessary living expenses exceed your income, they'll temporarily stop collection actions. 3. **Installment Agreement** - Set up affordable monthly payments (could be as low as $25-50/month based on your financial situation). Before you call, gather documentation of your monthly expenses: rent, utilities, transportation, food, and medical costs. Fill out Form 433-F (Collection Information Statement) which shows your complete financial picture. The key is acting NOW - don't wait another day. The IRS agents are actually pretty reasonable when you're upfront about genuine hardship. They'd rather have you employed and housed making small payments than unemployed making no payments. You can get through this!