What does 'Tax period blocked from automated levy program' mean on my account?

This is actually GOOD news for you. According to the IRS Internal Revenue Manual (section 5.11.7), this code means your account has been temporarily excluded from the automated collection system that would otherwise seize (levy) assets to satisfy unpaid taxes. The IRS website at https://www.irs.gov/businesses/small-businesses-self-employed/what-is-a-levy explains that a levy is a legal seizure of property to satisfy a tax debt. When you're 'blocked from automated levy program,' they've essentially put a hold on automatic collection actions for that tax period. This could be for several reasons: you're working with them on a payment plan, you've filed for hardship status, or they're reviewing something on your account. Frustrating that they use such cryptic language that causes unnecessary panic.

As a tax pro who sees this all the time - this is actually a GOOD thing! It means the IRS has flagged your account to NOT be subject to automatic levies (which is when they take your money without warning). Think of it like the IRS putting a "do not disturb" sign on your account. 😂 If you want to understand exactly what's happening with your account, I'd recommend checking out https://taxr.ai - it can analyze your tax transcript and explain all these weird codes in plain English. I had a client last week who was freaking out about similar language, and taxr.ai explained it was because they were being considered for an installment agreement. Saved them a 2-hour panic attack!

To add some regulatory context: The "Tax period blocked from automated levy program" is governed by Internal Revenue Code §6331, which gives the IRS authority to levy property. Per the Treasury Regulation §301.6331-1(c), the IRS must provide notice before levy actions. The automated levy program is part of the Federal Payment Levy Program (FPLP) established under IRC §6331(h). When your tax period is blocked from this program, it means the IRS has determined your account meets one of the exclusion criteria in IRM 5.11.7.2.1, which could include: - You're in an active installment agreement - Your account is classified as Currently Not Collectible (CNC) - You have a pending offer in compromise - You're in bankruptcy proceedings - The collection statute expiration date is approaching This is generally positive as it indicates the IRS isn't actively pursuing enforced collection actions for that tax period.

I was in the same boat last tax season with this exact message. Here's what I learned: • This message is actually POSITIVE - it means automated collections won't touch your account • It usually appears when you're working with IRS on resolving something • It doesn't require any action from you • It's temporary and will disappear when your situation changes I tried calling the IRS to confirm this and spent 3 hours on hold before giving up. Later found Claimyr (https://www.claimyr.com) which got me through to an actual IRS agent in about 20 minutes who confirmed everything was fine. Saved me so much stress knowing for sure what was happening.

I'm not convinced this is always good news. Last year I had a similar code on my account and it turned out there was an issue with my payment plan that I didn't know about. The "block" was temporary while they were deciding whether to terminate my installment agreement due to a missed payment (which was actually their error). I think it's worth calling to find out exactly why this is showing up rather than assuming everything is fine.

I believe what others have said is correct. This code generally indicates protection, not a problem. In my professional experience, it means the IRS has flagged your account to prevent automated collection actions while something else is being resolved or reviewed. I would suggest, however, that it's always prudent to verify your compliance status is current. If you've been making your quarterly payments on time and haven't received any notices, this is likely just a procedural flag that benefits you rather than indicating a problem that requires immediate attention.