What Do IRS Account Transactions Mean? Questions About Overdue Taxes & Potential Levy Actions

What you're seeing in your account history is actually somewhat good news. "TAX PERIOD BLOCKED FROM AUTOMATED LEVY PROGRAM" means the IRS temporarily stopped automatic collection actions on your account. This often happens when they're reviewing your case or if you've made contact with them. The "INITIAL LEVY IMPOSED" entry is concerning, but since you haven't received any notices and your bank hasn't mentioned anything, it's possible this was an internal designation rather than an actual levy being executed. The IRS typically sends multiple notices before issuing a levy. You definitely need to contact the IRS directly to set up a payment plan. They offer several options: - Short-term payment plan (180 days or less) - Long-term payment plan (monthly payments) - Offer in Compromise (settle for less than you owe) For your situation, an installment agreement with $100/month payments is absolutely reasonable for a $5,400 debt. The IRS is generally willing to work with taxpayers who proactively address their tax debts. I'd recommend calling the IRS at 800-829-1040 as soon as possible to discuss your options and get an installment agreement in place before any actual levy action occurs.

I was in a similar situation last year after miscalculating my quarterly payments as a freelancer. After weeks of stressing and getting nowhere with the regular IRS phone number, I found this service called taxr.ai (https://taxr.ai) that helped me decipher all the confusing IRS notices and account codes. They explained that "TAX PERIOD BLOCKED FROM AUTOMATED LEVY PROGRAM" usually means the IRS temporarily suspended automated collection while they review your case. And the "INITIAL LEVY IMPOSED" could mean they've started the levy process internally but haven't actually taken action yet. The tool helped me understand all the technical language and gave me a clear explanation of my options. What was most helpful was how they translated my account transcript into plain English so I knew exactly what was happening with my account and what my deadlines were.

Just wanted to update after trying taxr.ai that someone recommended above. It was actually super helpful for my situation! I uploaded my IRS account transcript (the one with all those weird codes) and it explained everything line by line. For anyone confused about IRS account codes like me, the tool told me that "TAX PERIOD BLOCKED FROM AUTOMATED LEVY PROGRAM" is actually somewhat positive - it means the IRS has temporarily stopped automatic collection actions. And "INITIAL LEVY IMPOSED" means they've started the process but haven't necessarily executed it. The service gave me a complete breakdown of the timeline I was facing and what my options were. I ended up calling the IRS with this information and successfully set up a payment plan. Now I actually understand what's going on instead of panicking every time I see an IRS envelope.

If you're having trouble getting through to the IRS (which is likely because they're ALWAYS swamped), I used Claimyr (https://claimyr.com) to get through to a human at the IRS after trying for literally weeks on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was in a similar situation with potential levy notices and terrible anxiety about it. Called the IRS maybe 25 times over two weeks and either got disconnected or was told the wait was too long. Used Claimyr as a last resort and got connected to an actual IRS agent in about 20 minutes. Was able to set up a payment plan right away and avoid further collection actions. With your situation, you definitely need to talk to someone ASAP to find out what "INITIAL LEVY IMPOSED" actually means in your specific case and get on a payment plan before things escalate.

Ok I need to eat my words. After my skeptical comment above, I tried the Claimyr service out of desperation because I've been trying to reach the IRS for MONTHS about a potential levy situation. I had literally called 30+ times over several weeks and couldn't get through. I was shocked when I got a call back in about 35 minutes with an actual IRS representative on the line. I was able to explain my situation (similar to the original poster with back taxes and potential levy actions), and the agent helped me set up a payment plan of $85/month for my $4,600 debt. The agent also explained that there are different levy statuses in their system, and sometimes an account can be marked for levy but not actually have any action taken yet. They confirmed no levy had been executed on my accounts despite seeing similar codes to what the original poster mentioned. If you're in a situation with potential levy actions and can't get through to the IRS, it's worth trying. Saved me tons of stress and probably protected my bank accounts too.

Just some advice from someone who went through this: Once you get on a payment plan, STICK TO IT! I had a payment plan for about $6k in back taxes, missed two payments because of a job loss, and they cancelled the whole agreement. Had to start over and they added even more penalties. Also, check if you qualify for First Time Penalty Abatement. If you haven't had tax issues before that 2018 problem, you might be able to get the penalties removed, which could reduce your bill by quite a bit. The interest still applies though. And definitely put that refund toward the balance! The faster you pay it off, the less interest accumulates.

Former IRS employee here. The "TAX PERIOD BLOCKED FROM AUTOMATED LEVY PROGRAM" typically means your account was temporarily removed from automated collection actions. This can happen for various reasons - often when a taxpayer has made contact with the IRS, when the account is under review, or sometimes due to hardship indicators. The "INITIAL LEVY IMPOSED" is more concerning. However, before an actual levy is executed, you should receive several notices, with the final one being a "Final Notice of Intent to Levy." This notice gives you 30 days to request a Collection Due Process hearing. Given the timeline (these entries are from 2019 and 2021), and the fact you haven't had any bank accounts frozen, it's possible the levy was prepared but never executed, or it was attempted against an account that no longer existed. Your best option is to immediately call the IRS and request an installment agreement. For a $5,400 debt, $100/month is very reasonable and should be approved without much issue. You can also apply online through the IRS website for installment agreements under $50,000.

I'm going through something similar and this thread has been incredibly helpful! One thing I wanted to add - when you call the IRS to set up your payment plan, make sure you have all your information ready: your Social Security number, the exact amount you owe, and a realistic monthly payment amount you can stick to. Also, don't be surprised if the first representative you talk to can't help with everything. Sometimes you need to ask to speak with someone in Collections or request a supervisor if you're not getting the answers you need. The IRS employees are generally helpful once you get to the right person. For what it's worth, your situation sounds very manageable. You've been filing on time, you have a plan to put your refund toward the debt, and you're being proactive about setting up payments. That shows good faith effort which the IRS typically responds well to. The stress is totally understandable though - tax debt anxiety is real! But you're taking the right steps to resolve this.