Federal Tax Levies and Corona Virus

The IRS announced that they will not be automatically releasing federal tax levies against taxpayer assets and wages. If the levy is causing an economic hardship (which means the levy prevents the taxpayer from meeting necessary, reasonable living expenses), then the taxpayer must apply for a release due to financial hardship.

There are three methods to apply for a release. First, if the taxpayer is working with a revenue officer (RO), the taxpayer should contact the RO. For cases not assigned to a RO, then the taxpayer should call the number on the notice of levy. If the taxpayer cannot get through, then the taxpayer should fax the request to 855-796-4524. The request should include the taxpayer’s name, address, and social security numbers (for both the taxpayer and spouse if they file a joint return). If addition, include the name, address, and fax number of the taxpayer’s employer or bank where the levy is being processed.

To apply for a Certificate of Discharge of Federal Tax Lien, taxpayers must use the E-Fax line for its Advisory Consolidated Receipts (ACR) site in Florence, Kentucky. Currently, the IRS has closed the ACR site for the health and safety of IRS employees. The E-Fax line is 844-201-8382. The IRS says it can process properly completed Certificates within ten days. The IRS is giving priority to Certificates related to selling or transferring property subject to a lien; borrowing or refinancing using property subject to the lien; borrowing to purchase property when taxes are owed; clarifying whom a lien is against or what a lien attaches; removing the effect of a notice of lien in the public record; and the request for IRS consent to the non-judicial sale of property.

For more information, see IRS’ Mission Critical Operations Webpage - irs.gov