The IRS Collection Process

Publication 594

This publication provides a general description of the IRS collection process. The 

collection process is a series of actions that the IRS can take to collect the taxes you 

owe if you don’t voluntarily pay them. The collection process will begin if you don’t 

make your required payments in full and on time, after receiving your bill.

Please keep in mind that this publication is for information only, and may not account 

for every tax collection scenario. It’s also not a technical analysis of tax law and does 

not include a detailed explanation of your rights. For an explanation of your rights, 

please see Publication 1, Your Rights as a Taxpayer.

If you have questions or need help

Please visit IRS.gov for your tax needs. You can get answers to your tax questions 

from the Interactive Tax Assistant www.irs.gov/ITA. You can also check www.irs.gov/

forms-instructions to find all the IRS tax forms and publications mentioned here and 

the IRS video portal at www.irsvideos.gov to view informational videos on a variety of 

topics in this publication.

You can also call the number on your bill or visit your local IRS office for assistance. 

If you don’t have a bill, please go to www.irs.gov/payments for payment options or 

call 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). Check for local 

services and hours of operation at www.irs.gov/help/contact-your-local-irs-office.

Overview: Filing a tax return, billing, and collection 2

General steps from billing to collection 2

What you should do when you get an IRS bill 2

Who to contact for help 2

Ways to pay your taxes 2

Options for paying in full 2

Options if you can’t pay in full now 3

If you are unable to pay at this time 3

How long we have to collect taxes 3

How to appeal an IRS decision 4

If you don’t pay on time: Understanding collection actions 4

Collection actions in detail 5

Federal Tax Lien 5

Notice of Federal Tax Lien 5

Levy: A seizure of property 6

Summons: Used to secure information 7

IRS Actions Affecting Passports 7

Information for Taxpayers assigned to a Private Collection Agency 7

Information for employers: Collection of employment tax 8

Additional information 8

Publication 594 (Rev. 5-2024) Catalog Number 46596B Department of the Treasury Internal Revenue Service www.irs.gov
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Publication 594 The IRS Collection Process

Overview: Filing a tax return, billing, and collection

After you file your tax return and/or a final decision is made establishing 

your correct tax, we record the amount in our records. If you owe, we 

will send a bill for the amount due, including any penalties and interest. 

If you don’t pay or make arrangements to pay, we can take actions 

to collect the debt. Our goal is to work with you to resolve your debt 

before we take collection actions. If your bill is for an individual shared 

responsibility payment as a result of the Affordable Care Act, the 

amount owed is not subject to the failure to pay penalty, levies or the 

filing of a Notice of Federal Tax Lien. However, interest will continue to 

accrue and the Service may offset federal tax refunds until the balance 

is paid in full.

➜ General steps from billing to collection

You file your tax return. Most returns are filed annually (by April 15th) 

or quarterly (businesses with employees).

1. If you owe taxes, we will send you a bill. This is 

your first bill for tax due. Based on your return, we will 

calculate how much tax you owe, plus any interest 

and penalties.

2. If you don’t pay your first bill, we will send you at 

least one more bill. Remember, interest and penalties 

continue to accrue, as applicable, until you’ve paid 

your full amount due.

3. If you still don’t pay after you receive your final bill, 

we will begin collection actions. Collection actions 

can range from applying your subsequent tax year 

refunds to tax due (until paid in full) to seizing your 

property and assets. This could include a visit from 

a Revenue Officer to your home or business. See 

https://www.irs.gov/newsroom/how-to-know-if-itsreally-the-irs.

➜ What you should do when you get an IRS bill

If you agree with the information on the bill, pay the full amount 

before the due date. If you can’t pay the full amount due, pay as 

much as you can and visit www.irs.gov/payments to consider our 

online payment options. Our online payment options include the 

Online Payment Agreement application which allows you to set up 

an installment agreement online. If you do not qualify for our online 

payment options, immediately contact us by calling the telephone 

number on your bill to explain your situation. You should have your 

financial information available during the call, including your monthly 

income and expenses. Based on your ability to pay, we may provide 

you with alternate payment options such as setting up an installment 

agreement.

If you disagree with the information on the bill, call the number on 

it, or visit your local IRS office. Be sure to have a copy of the bill and 

any tax returns, cancelled checks, or other records that will help us 

understand why you believe your bill is wrong. If we find that you’re 

right, we will adjust your account and, if necessary, send a revised bill.

If you don’t pay the amount due or tell us why you disagree with 

it, we may take collection actions.

If you are in bankruptcy, please notify us immediately. The 

bankruptcy may not eliminate your tax debt, but we may temporarily 

stop collection. Call the number on your bill or 1-800-973-0424. Have 

the following information available: the location of court, bankruptcy 

date, chapter and bankruptcy number.

➜ Who to contact for help

The Internal Revenue Service

Make IRS.gov your first stop for your tax needs. You can find answers 

with the Interactive Tax Assistant at www.irs.gov/ITA. Please don’t 

hesitate to contact us with any questions you may have. Call the 

number on your bill or 1-800-829-1040 (individuals) or 1-800-829-

4933 (businesses). You can find answers to your questions at IRS.gov 

or by visiting your local IRS office to speak with an IRS representative 

in person.

Taxpayer Advocate Service

The Taxpayer Advocate Service (TAS) is an independent organization 

within the Internal Revenue Service that helps taxpayers and protects 

taxpayer rights. They help taxpayers whose problems with the IRS 

are causing financial difficulties, who’ve tried but have not been able 

to resolve their problems with the IRS, or believe an IRS system or 

procedure isn’t working as it should. Their service is free. Your local 

advocate’s number is at www.taxpayeradvocate.irs.gov and in your 

local directory. You can also call them at 1-877-777-4778. For more 

information about TAS and your rights under the Taxpayer Bill of 

Rights, go to www.taxpayeradvocate.irs.gov. 

Taxpayer Sources for Assistance

Assistance can be obtained from individuals and organizations that are 

independent from the IRS. To find the location closest to you, you can 

view Publication 4134, Low Income Taxpayer Clinic List at IRS.gov. 

Also, see the LITC page at www.taxpayeradvocate.irs.gov/litcmap. 

Assistance may also be available from a referral system operated by a 

state bar association, a state or local society of accountants or enrolled 

agents or another nonprofit tax professional organization. The decision 

to obtain assistance from any of these individuals and organizations will 

not result in the IRS giving preferential treatment in the handling of the 

issue, dispute or problem.

Ways to pay your taxes

To explore all of your payment options visit www.irs.gov/payments. 

To minimize interest and penalties, we recommend paying your taxes 

in full. However, if you’re unable to pay in full, you can request an 

Installment Agreement or Offer in Compromise. These payment plans 

allow you to pay your taxes in installments over time, to pay less than 

you owe, or both. It’s also important to stay current on your payments 

for future taxes. This means making your estimated tax payments, 

withholding payments, or federal tax deposits as required by law.

➜ Options for paying in full

Electronic payments

We offer several electronic payment options. You can pay online, by 

phone or from your mobile device with the IRS2Go app. Go to www.

irs.gov/payments for the payment options, telephone numbers and 

easy secure ways to pay your taxes.

Online Account

Individuals can make payments from their bank account through Online 

Account. Go to www.irs.gov/account to sign up today and view all of 

the information available.

IRS Direct Pay

IRS Direct Pay is free and available to individual taxpayers at www.irs.

gov/DirectPay, where you can securely pay your taxes directly from 

your checking or savings accounts without any fees or pre-registration. 

Schedule payments up to 30 days in advance, and receive instant 

confirmation that you submitted your payment

Debit or credit card

You can pay your taxes by debit or credit card. Both paper and electronic 

filers can pay their taxes by phone or online through any of the 

authorized debit and credit card processors. Though the IRS does 

not charge a fee for this service, the card processors do. Go to www.

irs.gov/payments for authorized card processors and their phone 

numbers.

IRS2Go

To pay your federal taxes quickly on the go, use the IRS2Go mobile 

app. IRS2Go provides easy access to Direct Pay, offering you a free, 

secure way to pay directly from your checking or savings account. You 

can also make a debit or credit card payment through an approved 

payment processor for a fee. View more information at www.irs.gov/

irs2go.
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Publication 594 The IRS Collection Process

Electronic Federal Tax Payment System

The Electronic Federal Tax Payment System is a free service that gives 

taxpayers a safe and convenient way to pay individual and business 

taxes by phone or online. To enroll or for more information, visit www.

eftps.gov or call 800-555-4477.

Cash 

Taxpayers without bank accounts or if cash is their only option can pay 

using the new pay with cash at a Retail Partner. Because this option 

involves a three-step process, the IRS urges taxpayers choosing this 

option to start the process ahead of the tax deadline to avoid interest 

and penalty charges. The IRS offers this option in cooperation with 

our trusted partners at participating retail locations in all 50 states, 

including Puerto Rico. Details, including answers to frequently-asked 

questions, are at www.irs.gov/paywithcash.

Pay by mail

You can mail a check to us at the address listed on your notice. Make 

checks payable to the Department of the Treasury.

➜ Options if you can’t pay in full now

Apply for an Installment Agreement (Payment Plan)

An Installment Agreement with the IRS means that we will allow you 

to make smaller periodic payments over time if you can’t pay the full 

amount at once. A setup fee applies to all agreements over 180 days. 

There are several ways to apply for an Installment Agreement:

• Online, using the Online Payment Agreement application at 

www.irs.gov/OPA. You can apply online for a reduced setup fee if 

the total combined balance of individual income tax, penalty, and 

interest you owe is $50,000 or less. Also, individuals owing up to 

$100,000 can apply for a short-term payment plan of up to 180 

days. If you own a business and owe $25,000 or less in combined 

payroll taxes, penalty and interest for the current and prior calendar 

year, you can also use the Online Payment Agreement to request 

an installment agreement. 

• By phone, please call the number on your bill or 1-800-829-1040: 

(individuals) 1-800-829-4933 (businesses).

• By mail, please complete Form 9465, Installment Agreement 

Request. In addition to Form 9465, if you want to make your 

payments by payroll deduction, complete Form 2159, Payroll 

Deduction Agreement. If you owe more than $50,000, you will also 

need to complete Form 433F, Collection Information Statement. 

Mail your form to the address on your bill.

• In person, at your local IRS office near you, please visit www.irs.

gov/help/contact-your-local-irs-office.

If you request a payment plan online, you will receive immediate 

notification if your agreement is approved. If you request a payment 

plan by mail, you can reduce the accrual of penalties and interest 

by making voluntary payments until you’re notified whether we’ve 

accepted your payment plan request. Our acceptance of your interim 

payments doesn’t mean we’ve approved your request. We will notify 

you in writing once we’ve made our decision.

With an installment agreement, you can pay by direct debit, through 

payroll deductions, or by any payment method listed on www.irs.gov/

payments. The setup fee is reduced if you make your payments by 

direct debit and waived for individuals identified as low-income who 

pay by direct debit. Low-income individuals who set up an installment 

agreement that is not direct debit are charged a reduced fee. The 

reduced fee can even be waived completely or reimbursed if you meet 

our low-income guidelines. For more information, see Form 13844, 

Application for Reduced User Fee for Installment Agreements. You 

do not need to submit the user fee with your installment agreement 

application. The fee can be taken from the initial payments made once 

the installment agreement is accepted.

To be eligible for an installment agreement, you must file all required 

tax returns. Prior to approving your Installment Agreement request, we 

may ask you to complete a Collection Information Statement (Form 

433F, 433-A and/or Form 433-B) and provide proof of your financial 

status. Please have your financial information available if you apply over 

the phone or at an IRS office. For more information, see Publication 

1854, How to Complete a Collection Information Statement (Form 433-A).

If we approve your request, we will still charge applicable interest and 

penalties until you pay the balance due in full, and may file a Notice of 

Federal Tax Lien (see page 5). If we reject your Installment Agreement 

request, you may request that the IRS Independent Office of Appeals 

(Appeals) review your case. For more information, see Publication 

1660, Collection Appeal Rights.

If you’re unable to meet the terms of your approved Installment 

Agreement, please contact us immediately.

Apply for an Offer in Compromise

You may be eligible for an Offer in Compromise if you can’t pay the 

amount you owe in full or through installments. By requesting an Offer 

in Compromise, you’re asking to settle unpaid taxes for less than the 

full amount you owe or doubt exists as to the amount of the liability. 

We may accept an Offer in Compromise if:

• We agree that your tax debt may not be accurate,

• You have insufficient assets and income to pay the amount due, or

• Because of your exceptional circumstances, paying the amount 

due would cause an economic hardship or would be unjust.

For an Offer in Compromise to be considered, you must pay an 

application fee and make an initial or periodic payment for all Form 

656 submissions. However, low-income taxpayers may qualify for a 

waiver of the application fee and initial or periodic payment. For more 

information, please see the Low-Income Certification form found in 

Form 656-B, Offer in Compromise Booklet.

Before we can consider your offer, you must file all tax returns you are legally 

required to file, make all required estimated tax payments for the current 

year, and make all required federal tax deposits for the current quarter 

and the two preceding quarters. We can’t consider your offer if you are 

in bankruptcy. Use the Offer in Compromise Pre-Qualifier to explore the 

possibility that the Offer in Compromise program may be a realistic option 

to resolve your balance due. To apply for an Offer in Compromise, complete 

one of the following forms:

• Form 656-L, Offer in Compromise (Doubt as to Liability)

Complete this if there is a genuine dispute as to the existence or 

amount of the correct taxt debt under the law.

• Form 656, Offer in Compromise

Complete this if you’re unable to pay the amount due, or have an 

economic hardship, or have another special circumstance that 

would cause paying the amount due to be unjust.

For more information, see Form 656-B, Offer in Compromise Booklet

or visit www.irs.gov/Individuals/Offer-in-Compromise-1.

➜ If you are unable to pay at this time

Ask that we delay collection and report your account as currently 

not collectable

If you can’t pay any of the amount due because payment would 

prevent you from meeting basic living expenses, you can request 

that we delay collection until you’re able to pay. Prior to approving 

your request, we may ask you to complete a Collection Information 

Statement and provide proof of your financial status. Please remember 

that even if we delay collection, we will still charge applicable penalties 

and interest until you pay the full amount, and we may file a Notice of 

Federal Tax Lien (see page 5). We may also request updated financial 

information during this temporary delay to review your ability to pay.

➜ How long we have to collect taxes

We can attempt to collect your taxes up to 10 years from the date 

they were assessed. However, the running of this time period may be 

suspended for several reasons, including, but not limited to, while: 

• We’re considering your request for an Installment Agreement or 

Offer in Compromise. If your request is rejected, we will suspend 

collection for another 30 days, and during any period Appeals is 

considering your appeal request.
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Publication 594 The IRS Collection Process

• Collection may be suspended for the period you’re outside the U.S. 

if you live outside the U.S. continuously for at least 6 months.

• The tax periods we’re collecting on are included in a bankruptcy 

with an automatic stay. We will suspend collection for the time 

period we can’t collect because of the automatic stay, plus 6 

months.

• You request a Collection Due Process hearing. Collection will 

be suspended from the date of your request until a Notice of 

Determination is issued or the Tax Court’s decision is final.

• We’re considering your request for Innocent Spouse Relief. 

Collection will be suspended from the date of your request until 90 

days after a Notice of Determination is issued, or if you file a timely 

petition to the Tax Court, until 60 days after the Tax Court’s final 

decision. If you appeal the Tax Court’s decision to a U.S. Court of 

Appeals, the collection period will begin 60 days after the appeal is 

filed, unless a bond is posted.

For additional information about statute expiration dates, see https://

www.irs.gov/filing/time-irs-can-collect-tax. 

➜ How to appeal an IRS decision

You have the right to appeal most collection actions to Appeals. 

Appeals is separate from and independent of the IRS Collection 

office that initiates collection actions. Appeals ensures and protects 

its independence by adhering to a strict policy prohibiting certain 

communications with the IRS Collection office or other IRS offices, 

such as discussions regarding the strength or weakness of your case. 

When an IRS office is to be engaged in discussions, you will be invited 

to participate in the conference, or provided any written document to 

give you an opportunity to comment. Your main options for appeals are 

the following: Collection Due Process or Collection Appeals Program.

Collection Due Process

The purpose of a Collection Due Process hearing is to have Appeals 

review collection actions that were taken or have been proposed. 

After Appeals has made their determination and you do not agree, 

you can go to court to appeal the Appeals’ Collection Due Process 

determination. You can request a Collection Due Process hearing if you 

receive any of the following notices:

• Notice of Federal Tax Lien Filing and Your Right to a Hearing

• Final Notice—Notice of Intent to Levy and Notice of Your Right to a 

Hearing

• Notice of Jeopardy Levy and Right of Appeal

• Notice of Levy on Your State Tax Refund—Notice of Your Right to 

a Hearing

• Notice of Levy and of Your Right to a Hearing

To request a Collection Due Process hearing, complete Form 12153, 

Request for a Collection Due Process or Equivalent Hearing or a 

written request containing the same information as contained in Form 

12153, and send it to the address on your notice. You must request 

a Collection Due Process hearing by the date indicated in the notice 

we send you (for proposed levies, that date is 30 days from the date 

of the letter). The request must be filed timely to preserve your right 

to judicial review of the determination issued in your Collection Due 

Process hearing. If your request for a Collection Due Process hearing is 

not timely, you can request an Equivalent Hearing within one year from 

the date of the notice, but you cannot go to court if you disagree with 

Appeals’ decision.

During a Collection Due Process hearing, the 10-year period for 

collecting taxes is suspended and we are generally prohibited from 

seizing (levying) your property, if seizing your property is the subject 

of the hearing. We are permitted to seize your property during an 

Equivalent Hearing or a Collection Due Process hearing about filing of 

a Notice of Federal Tax Lien, but normally we will not seize property 

during these hearings. The 10-year period for collecting taxes is not 

suspended during an Equivalent Hearing.

You are entitled to only one Collection Due Process lien hearing and 

one levy hearing for each tax period or assessment. You are entitled 

to propose collection alternatives, such as entering into an installment 

agreement or an offer-in-compromise, for consideration by Appeals in 

the hearing. It may be necessary for you to submit financial information 

or tax returns to qualify for such collection alternatives.

All issues should be raised and all necessary supporting information 

presented to Appeals at the hearing. You are prevented from 

raising issues during a judicial review that were not properly raised 

with Appeals in the Collection Due Process hearing. Your Appeals 

conference may be held by telephone, correspondence, or, if you 

qualify, in a face-to-face conference at the Appeals office closest to 

your home or place of business. You may be denied a face-to-face 

conference if you raise issues that are deemed frivolous or made with a 

desire solely to delay or impede collection. For a nonexclusive listing of 

issues identified by the IRS as frivolous, see “The Truth About Frivolous 

Tax Arguments” on IRS.gov. For more information about Collection Due 

Process see Publication 1660.

Collection Appeals Program

Under the Collections Appeals Program, if you disagree with an 

IRS employee’s decision regarding any levy, seizure, or Notice of 

Federal Tax Lien filing and want to appeal it, you can ask to have a 

conference with the employee’s manager. If we seize your house, car, 

or other property in order to sell your interest in the property to apply 

the proceeds to your tax debt, you must make the request within 

10 business days after the Notice of Seizure is given to you or left at 

your home or business. There is no deadline to request a manager 

conference when a levy is served for other types of property (such 

as wages or bank accounts) or a levy or seizure or Notice of Federal 

Tax Lien filing is proposed. The collection action may go forward if a 

conference is not requested within a reasonable time period.

If you then disagree with the manager’s decision, you may request 

Appeals review your case under the Collection Appeals Program as 

outlined in Publication 1660. Let the Collection office know within 2 

business days after the conference with the Collection manager that 

you plan to submit a Form 9423. The Form 9423 must be received 

or postmarked within 3 business days of the conference with the 

Collection manager or collection may resume.

If you request a conference and are not contacted by a manager or 

their designee within 2 business days of making the request, you may 

contact Collection again and request Appeals consideration. If you 

submit Form 9423, note the date of your request for a conference in 

Block 15 and indicate that you were not contacted by a manager. The 

Form 9423 should be received or postmarked within 4 business days 

of your request for a conference as collection action may resume. 

Submit Form 9423 to the Revenue Officer involved in the lien, levy or 

seizure action.

If you file a Collection Appeals Request and do not agree with Appeals 

decisions, you cannot proceed to court.

Instances in which you can pursue the Collection Appeals Program 

include, but aren’t limited to:

• Before or after we file a Notice of Federal Tax Lien 

• Before or after we seize (“levy”) your property 

• After we reject, terminate, or propose to terminate your Installment 

Agreement (a conference with the manager is recommended, but 

not required). Submit your written Installment Agreement Appeal 

request, preferably using Form 9423, Collection Appeal Request, 

within the timeframe listed in your notice.

For more information about the Collection Due Process and Collection 

Appeals Program, please see Publication 1660, Collection Appeal 

Rights.

If you don’t pay on time:

Understanding collection actions

There are several words and phrases particular to the collection process. 

Here, we’ve defined some of the most common collection terms:
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Publication 594 The IRS Collection Process

Federal Tax Lien: A legal claim against all your current and future 

property, such as a house or car, and rights to property, such as wages 

and bank accounts. The lien automatically comes into existence if you 

don’t pay your amount due after receiving your first bill.

Notice of Federal Tax Lien: A public notice to creditors. It notifies 

them that there is a federal tax lien that attaches to all your current and 

future property and rights to property.

Levy: A legal seizure of property or rights to property to satisfy a tax 

debt. When property is seized (“levied”), it will be sold to help pay your 

tax debt. If wages or bank accounts are seized, the money will be 

applied to your tax debt.

Seizure: There is no legal difference between a seizure and a levy. 

Throughout this publication, we will use both terms interchangeably.

Notice of Intent to Levy and Notice of Your Right to a Hearing:

Generally, before property is seized, we have to send you this notice. If 

you don’t pay your overdue taxes, make other arrangements to satisfy 

the tax debt, or request a hearing within 30 days of the date of this 

notice, we may seize your property.

Summons: A summons legally compels you or a third party to meet 

with the IRS and provide information, documents or testimony.

Passport Actions: The Department of State will not issue or renew a 

passport to any individual who has been certified by the IRS as having 

a seriously delinquent tax debt, and may revoke a passport previously 

issued to such individual.

Collection actions in detail

➜ Federal Tax Lien: A legal claim against property

A lien is a legal claim against all your current and future property. When 

you don’t pay your first bill for taxes due, a lien is created by law and 

attaches to your property. It applies to property (such as your home 

and car) and to any current and future rights you have to property.

➜ Notice of Federal Tax Lien: Provides public notice to 

creditors that a lien exists

A Notice of Federal Tax Lien gives public notice to creditors. We file the 

Notice of Federal Tax Lien so we can establish the priority of our claim 

versus the claims of other creditors. The Notice of Federal Tax Lien is 

filed with local or state authorities, such as county recorder of deeds or 

the Secretary of State offices.

Employers, landlords and others may also use this information and 

not favorably view the fact that a Notice of Federal Tax Lien has been 

filed against you. However by law, there will be no filing of the Notice 

of Federal Tax Lien and no levies issued to collect an individual shared 

responsibility payment associated with the Affordable Care Act.

What to do if a Notice of Federal Tax Lien is filed against you

You should pay the full amount you owe immediately. The Notice of 

Federal Tax Lien only shows your assessed balance as of the date of 

the notice. It doesn’t show your payoff balance or include our charges 

for filing and releasing the lien. To find out the full amount you must pay 

to have the lien released, call 1-800-913-6050 or 859-320-3526 if you 

are calling from outside of the United States. If you have questions, 

call the number on your lien notice or 1-800-829-1040 (individuals) or 

1-800-829-4933 (businesses) or visit www.irs.gov/Businesses/SmallBusinesses-&-Self-Employed/Understanding-a-Federal-Tax-Lien, or 

view instructional videos at www.irsvideos.gov/Individual/IRSLiens.

How to appeal a Notice of Federal Tax Lien

Within five business days of the first filing of the Notice of Federal Tax 

Lien for a specific debt, we will send you a Notice of Federal Tax Lien 

Filing and Your Right to a Collection Due Process Hearing. You’ll have 

until the date shown on the notice to request a Collection Due Process 

hearing with Appeals. Send your Collection Due Process hearing 

request to the address on the notice. For more information, see Form 

12153, Request for a Collection Due Process or Equivalent Hearing.

After your Collection Due Process hearing, Appeals will issue a 

determination on whether the Notice of Federal Tax Lien should remain 

filed, or whether it should be withdrawn or released. If you disagree 

with the determination, you have 30 days after it’s made to seek a 

review in the U.S. Tax Court.

In addition to any Collection Due Process rights you may have, you 

may also appeal a proposed or actual filing of a Notice of Federal Tax 

Lien under the Collection Appeals Program.

Reasons we will “release” a Federal Tax Lien

A “release” of a Federal Tax Lien means that we have cleared both the 

lien for your debt and the public Notice of Federal Tax Lien. We do this 

by filing a Certificate of Release of Federal Tax Lien with the same state 

and local authorities with whom we filed your Notice of Federal Tax 

Lien. We will release your lien if:

• Your debt is fully paid,

• Payment of your debt is guaranteed by a bond, or

• You have met the payment terms of an Offer in Compromise which 

the IRS has accepted, or

• The period for collection has ended. (In this case, the release is 

automatic.)

For more information, see Publication 1450, Instructions on How to 

Request a Certificate of Release of Federal Tax Lien.

Reasons we may “withdraw” a Notice of Federal Tax Lien

A “withdrawal” removes the Notice of Federal Tax Lien from public 

record. The withdrawal tells other creditors that we’re abandoning our 

lien priority. This doesn’t mean that the Federal Tax Lien is released or 

that you’re no longer liable for the amount due.

We may withdraw a Notice of Federal Tax Lien if:

• You’ve entered into an Installment Agreement to satisfy the tax 

liability, unless the Agreement provides otherwise. For certain types 

of taxes, we routinely grant Notice of Federal Tax Lien withdrawal 

requests if you’ve entered into a direct debit installment agreement 

and meet certain other conditions,

• It will help you pay your taxes more quickly,

• We didn’t follow IRS procedures,

• It was filed during a bankruptcy automatic stay period, or

• It’s in your best interest and in the best interest of the government. 

For example, this could include when your debt has been satisfied 

and you request a withdrawal.

For more information, see Form 12277, Application for Withdrawal 

of Filed Notice of Federal Tax Lien or the instructional video at www.

irsvideos.gov/Individual/IRSLiens/LienNoticeWithdrawal.

How to apply for a “discharge” of a Federal Tax Lien from property

A “discharge” removes specific property from the federal tax lein. 

There are several circumstances under which a discharge may be 

granted. For example, we may issue a Certificate of Discharge if you’re 

selling property and the government receives its interest through the 

sale. For more information on whether you qualify for a discharge, 

see Publication 783, Instructions on How to Apply for a Certificate of 

Discharge of Property from Federal Tax Lien. To watch an instructional 

video about Publication 783, visit www.irsvideos.gov/Individual/

IRSLiens.

How to make the Federal Tax Lien secondary to other creditors 

(“subordination”)

A “subordination” is where a creditor is allowed to move ahead of the 

government’s priority position. For example, if you’re trying to refinance 

a mortgage on your home, but aren’t able to because the federal tax 

lien has priority over the new mortgage, you may request that we 

subordinate our lien to the new mortgage. For more information on 

whether you qualify for a subordination, see Publication 784, How to 

Prepare an Application for a Certificate of Subordination of Federal Tax 

Lien. To watch an instructional video about Publication 784, visit www.

irsvideos.gov/Individual/IRSLiens.

Appeal rights for withdrawal, discharge or subordination

If your application is denied you will receive Form 9423, Collection 

Appeal Request and Publication 1660, Collection Appeal Rights, with 
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an explanation of why your application was denied. If we deny your 

request for a withdrawal, discharge, or subordination, you may appeal 

under the Collections Appeals Program.

➜ Levy: A seizure of property

While a federal tax lien is a legal claim against your property, a levy is 

a legal seizure that actually takes your property (such as your house 

or car) or your rights to property (such as your income, bank account, 

retirement account or Social Security payments) to satisfy your tax debt.

We can’t seize your property if you have a current or pending Installment 

Agreement, Offer in Compromise, or if we agree that you’re unable to 

pay due to economic hardship, meaning seizing your property would 

result in your inability to meet basic, reasonable living expenses.

Reasons we may seize (“levy”) your property or rights to property

If you don’t pay your taxes (or make arrangements to settle your debt), 

we could seize and sell your property. We will not seize your property 

to collect an individual shared responsibility payment. We usually seize 

only after the following things have occurred.

• We assessed the tax and sent you a bill,

• You neglected or refused to pay the tax, and

• We sent you a Final Notice of Intent to Levy and Notice of Your 

Right to a Hearing at least 30 days before the seizure.

However, there are exceptions for when we don’t have to offer you a 

hearing at least 30 days before seizing your property. These include 

situations when:

• The collection of the tax is in jeopardy, 

• A levy is served to collect tax from a state tax refund,

• A levy is served to collect the tax debt of a federal contractor, or

• A Disqualified Employment Tax Levy (DETL) is served. A DETL is 

the seizure of unpaid employment taxes and can be served when a 

taxpayer previously requested a Collection Due Process appeal on 

employment taxes for other periods within the past 2 years.

If we serve a levy under one of these exceptions, we will send you 

a letter explaining the seizure and your appeal rights after the levy is 

issued.

What you should do if your property is seized (“levied”) 

If your property is seized, call the number on your levy notice or 1-800-

829-1040 (individuals) or 1-800-829-4933 (businesses). If you’re 

already working with an IRS employee, call them for assistance.

Examples of property we can seize (“levy”)

• Wages, salary, or commission held by someone else. If we seize 

your rights to wages, salary, commissions, or similar payments that 

are held by someone else, we will serve a levy once, not each time 

you’re paid. The one levy continues until your debt is fully paid, 

other arrangements are made, or the collection period ends, or the 

levy is released. Other payments you receive, such as dividends 

and payments on promissory notes, are also subject to seizure. 

However, the seizure only reaches the payments due or the right to 

future payments as of the date of the levy. 

• Your bank account. Seizure of the funds in your bank account 

will include funds available for withdrawal up to the amount of the 

seizure. After the levy is issued, the bank will hold the available 

funds and give you 21 days to resolve any disputes about who 

owns the account before sending us the money. After 21 days, 

the bank will send us your money, and any interest earned on that 

amount, unless you have resolved the issue in another way.

• Your retirement account, including Qualified Pension, Profit Sharing, 

and Stock Bonus Plans under ERISA; IRAs, Retirement Plans for 

the Self-Employed (such as SEP-IRAs and Keogh Plans) and the 

Thrift Savings Plan. Depending on the terms of the plan a levy may 

attach to the funds in which you have a vested right.

• Your federal payments. As an alternative to the levy procedure 

used for other payments such as dividends and promissory 

notes, certain federal payments may be systemically seized 

through the Federal Payment Levy Program in order to pay 

your tax debt. Under this program, we can generally seize up to 

15% of your federal payments (up to 100% of payments due to 

a vendor for property, goods or services sold or leased to the 

federal government). We will serve the levy once, not each time 

you are paid. The levy continues until your debt is fully paid, other 

arrangements are made, the collection period ends, or the IRS 

releases the levy. The federal payments that can be seized in this 

program include, but aren’t limited to, federal retirement annuity 

income from the Office of Personnel Management, Social Security 

benefits under Title II of the Social Security Act (OASDI), and 

federal contractor/vendor payments.

• Your house, car, or other property. If we seize your house or other 

property, we will sell your interest in the property and apply the 

proceeds (after the costs of the sale) to your tax debt. Prior to 

selling your property, we will calculate a minimum bid price. We 

will also provide you with a copy of the calculation and give you 

an opportunity to challenge the fair market value determination. 

We will then provide you with the notice of sale and announce the 

pending sale to the public, usually through local newspapers or 

flyers posted in public places. After giving public notice, we will 

generally wait 10 days before selling your property. Money from the 

sale pays for the cost of seizing and selling the property and, finally, 

your tax debt. If there’s money left over from the sale after paying 

off your tax debt, we will tell you how to get a refund.

Property that can’t be seized (“levied”)

Certain property is exempt from seizure. For example, we can’t seize 

the following: unemployment benefits, certain annuity and pension 

benefits, certain service-connected disability payments, worker’s 

compensation, certain public assistance payments, minimum weekly 

exempt income, assistance under the Job Training Partnership Act, 

and income for court-ordered child support payments.

We also can’t seize necessary schoolbooks and clothing, undelivered 

mail, certain amounts worth of fuel, provisions, furniture, personal 

effects for a household, and certain amounts worth of books and tools 

for trade, business, or professions. There are also limitations on our 

ability to seize a primary residence and certain business assets.

Lastly, we can’t seize your property unless we expect net proceeds to 

help pay off your tax debt.

How to appeal a proposed seizure (“levy”)

You can request a Collection Due Process hearing within 30 days from 

the date of your Notice of Intent to Levy and Notice of Your Right to a 

Hearing. Send your request to the address on your notice. For more 

information, see Form 12153, Request for a Collection Due Process 

or Equivalent Hearing. At the conclusion of your hearing, the Office 

of Appeals will provide a determination. You’ll have 30 days after the 

determination to challenge it in the U.S. Tax Court. If Collection Due 

Process rights aren’t available for your case, you may have other 

appeal options, such as the Collection Appeals Program.

Reasons we “release” a levy 

The Internal Revenue Code specifically provides that we must release a 

levy if we determine that:

• You paid the amount you owe,

• The period for collection ended prior to the levy being issued,

• It will help you pay your taxes,

• You enter into an Installment Agreement and the terms of the 

agreement don’t allow for the levy to continue,

• The levy creates an economic hardship, meaning we’ve 

determined the levy prevents you from meeting basic, reasonable 

living expenses, or

• The value of the property is more than the amount owed and 

releasing the levy won’t hinder our ability to collect the amount 

owed.

We will also release a levy if it was issued improperly. For example, we 

will release a levy if it was issued:
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Publication 594 The IRS Collection Process

• Against property exempt from seizure,

• Prematurely,

• Before we sent you the required notice,

• While you were in bankruptcy and an automatic stay was in effect,

• When the expenses of seizing and selling the levied property would 

be greater than the fair market value of the property,

• While an Installment Agreement request, Innocent Spouse Relief 

request, or Offer in Compromise was being considered or had 

been accepted and was in effect, or

• While Appeals or Tax Court was considering a collection due 

process case and the levy wasn’t a Disqualified Employment Tax 

Levy to collect employment taxes, a state refund, a jeopardy levy, 

or to collect the tax debt of federal contractor.

• While Appeals or Tax Court is considering an appeal of the denial 

of innocent spouse relief.

Reasons we may return seized (“levied”) property

We may return your property if:

• The seizure was premature,

• The seizure was in violation of the law,

• Returning the seized property will help our collection of your debt,

• You enter into an Installment Agreement to satisfy the liability for 

which the levy was made, unless the Agreement does not allow for 

the return of previously levied upon property.

• We didn’t follow IRS procedures, or

• It’s in your best interest and in the best interest of the government.

We may return property at any time if the property has not been sold. 

If we decided to return your property, but it’s already sold, we will give 

you the money we received from the sale. You can file a request for 

return of seized money or money from the sale of seized property, 

generally up to 9 months after the seizure.

How to recover seized (“levied”) property that’s been sold

To recover your real estate, you (and anyone with interest in the 

property) may recoup it within 180 days of the sale by paying the 

purchaser what they paid, plus interest at 20% annually, compounded 

daily.

If your property has been seized (“levied”) to collect tax owed 

by someone else, you may appeal the seizure under the Collection 

Appeals Program or file a claim under Internal Revenue Code section 

6343(b), generally within 2 years of the seizure, or you may file a 

suit under Internal Revenue Code section 7426 for the return of the 

wrongfully seized property, generally within 2 years of the seizure. 

You may also appeal the denial of the request to return the wrongfully 

seized property under the Collection Appeals Program. For more 

information, see Publication 4528, Making an Administrative Wrongful 

Levy Claim under Internal Revenue Code section 6343(b). 

How to recover economic damages

If we wrongfully seized your property, we lost or misplaced your 

payment, or there was a direct debit installment agreement processing 

error and you incurred bank charges, we may reimburse you for 

charges you paid. For more information, see Form 8546, Claim for 

Reimbursement of Bank Charges. If your claim is denied, you can sue 

the federal government for economic damages.

If we intentionally or negligently didn’t follow Internal Revenue law while 

collecting your taxes, or you’re not the taxpayer and we wrongfully 

seized your property, you may be entitled to recover economic 

damages. Mail your written administrative claim to the attention of 

the Advisory Group Manager for your area at the address listed in 

Publication 4235, Collection Advisory Group Addresses. If you’ve filed 

a claim and your claim is denied, you can sue the federal government, 

but not the IRS employee, for economic damages.

➜ Summons: Used to secure information

If we’re having trouble gathering information to determine or collect 

taxes you owe, we may serve a summons. A summons legally 

compels you or a third party to meet with an officer of the IRS and 

provide information, documents and/or testimony.

If you’re responsible for a tax liability and we serve a summons on 

you, you may be required to:

• Testify,

• Bring books and records, and/or

• Produce documents to prepare a Collection Information Statement, 

Form 433-A or Form 433-B.

If you can’t make your summons appointment, immediately call the 

number listed on your notice. If you don’t call us and don’t attend your 

appointment, we may sue you in federal district court to require you to 

comply with the summons. 

If we serve a third-party summons to determine your tax liability, 

you’ll be notified that the summons has been served and given a 

copy of the summons. Third parties can be financial institutions or 

people with information relevant to your case. We won’t review their 

information or receive testimony until the end of the 23rd day after the 

notice was given. You also have the right to:

• Petition to reject (“quash”) the summons before the end of the 20th 

day after the day notice is given, or 

• Petition to intervene in a suit to enforce a summons to which the 

third party didn’t comply.

If we issue a third-party summons to collect taxes you already 

owe, you won’t receive notice or be able to petition to reject or 

intervene in a suit to enforce the summons.

➜ IRS action affecting passports

The Fixing America’s Service Transportation (FAST) Act of 2015, 

enacted by Congress and signed into law on December 4, 2015, 

requires the Internal Revenue Service to notify the State Department of 

taxpayers certified as owing a seriously delinquent tax debt. Seriously 

delinquent tax debt means an unpaid, legally enforceable federal tax 

debt (including penalties and interest) of an individual totaling more 

than $62,000 as of 2024 (adjusted yearly for inflation) for which a 

Notice of Federal Tax lien has been filed and all administrative remedies 

under IRC § 6320 have lapsed or been exhausted, or a levy has been 

issued. If you are individually liable for tax debt (including penalties and 

interest) totaling more than $62,000 (adjusted yearly for inflation) and 

you do not pay the amount you owe or make alternate arrangements 

to pay, we may notify the State Department that your tax debt is 

seriously delinquent. The State Department generally will not issue 

or renew, and may revoke, your passport after being notified of your 

seriously delinquent tax debt. For additional information on passport 

certification visit www.irs.gov/passports.

Information for Taxpayers assigned to a Private 

Collection Agency

Your delinquent account could be assigned to a Private Collection 

Agency. We will notify you of the assignment before the Private 

Collection Agency contacts you and will send you Publication 

4518, What You Can Expect When the IRS Assigns You to a Private 

Collection Agency. The notice from us will contain the name of the 

Private Collection Agency we assigned your account to, along with 

the Private Collection Agency’s address and phone number. To 

protect your privacy, our notice will also provide you with a unique 

ten-digit Taxpayer Authentication Number. Be sure to save this 

number. The Private Collection Agency will only work with you on 

your delinquent accounts after authenticating your identity using 

your Taxpayer Authentication Number. Our contracts with Private 

Collection Agencies require that they provide you with quality service 

and equitable treatment. For more information about the private debt 

collection program, visit www.irs.gov/businesses/small-businessesself-employed/private-debt-collection.
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Publication 594 The IRS Collection Process

Information for employers:

Collection of employment tax

About employment taxes

Employment taxes are the amount you must withhold from your 

employees for their income tax and Social Security/Medicare tax (trust 

fund taxes) plus the amount of Social Security/Medicare tax you pay 

for each employee. Federal unemployment taxes are also considered 

employment taxes.

Employment taxes are incurred at the time you pay wages and 

generally paid in semi-weekly or monthly deposits. You must use 

electronic funds transfer to make all federal tax deposits, generally 

through the Electronic Federal Tax Payment System (EFTPS). See 

Publication 966, Electronic Federal Tax Payment System: A Guide To 

Getting Started.

What we will do if you don’t pay your employment taxes:

• Assess a failure to deposit penalty, up to 15% of the amount not 

deposited in a timely manner.

• We may file a Notice of Federal Tax Lien and/or take levy action

• We may propose a Trust Fund Recovery Penalty assessment 

against the individuals responsible for failing to pay the trust fund 

taxes.

• We may refer this matter to the Department of Justice for civil 

collection or criminal prosecution for failure to adhere to the 

reporting and payment requirements mandated by the Internal 

Revenue Code.

About trust fund taxes

Trust fund taxes are the income tax, Social Security tax, and Medicare 

tax (trust fund taxes) withheld from the employee’s wages. They are 

called trust fund taxes because the employer holds these funds “in 

trust” for the government until it submits them in a federal tax deposit. 

Certain excise taxes are also considered trust fund taxes because they 

are collected and held in trust for the government until submitted in a 

federal tax deposit. For more information, see Publication 510, Excise 

Taxes.

To encourage prompt payment of withheld employment taxes and 

collected excise taxes, Congress has passed a law that provides for 

the Trust Fund Recovery Penalty.

For more information on employment taxes or trust fund taxes, see 

Publication 15, Circular E, Employer’s Tax Guide.

Trust Fund Recovery Penalty 

The Trust Fund Recovery Penalty is a penalty that is assessed 

personally against the individual or individuals who were responsible for 

paying the trust fund taxes, but who willfully did not do so. The amount 

of the penalty is equal to the amount of the unpaid trust fund taxes. For 

additional information, please see Notice 784, Could You be Personally 

Liable for Certain Unpaid Federal Taxes? or visit www.irs.gov/TFRP.

If the Trust Fund Recovery Penalty is proposed against you, you’ll 

receive a Letter 1153 and Form 2751, Proposed Assessment of Trust 

Fund Recovery Penalty.

If you agree with the penalty, sign and return Form 2751 within 

60 days from the date of the letter. To avoid the assessment of the 

Trust Fund Recovery Penalty, you may also pay the trust fund taxes 

personally.

If you disagree with the penalty, you have 10 days from the date 

of the letter to let us know that you don’t agree with the proposed 

assessment, have additional information to support your case, or 

want to try to resolve the matter informally. If you can’t resolve the 

disagreement with us, you have 60 days from the date of the Letter 

1153 to appeal with Appeals. For more information, see Publication 5, 

Your Appeal Rights and How to Prepare a Protest if You Don’t Agree.

If you don’t respond to the letter, we will assess the penalty amount 

against you personally and begin the collection process to collect it. 

We may assess this penalty against a responsible person regardless of 

whether the company is still in business.

Additional information

Innocent Spouse Relief

Generally, both you and your spouse are responsible, jointly and 

individually, for paying any tax, interest, or penalties on your joint 

return. If you believe your current or former spouse should be solely 

responsible for an incorrect item or an underpayment of tax on your 

joint tax return, you may be eligible for Innocent Spouse Relief. This 

could change the amount you owe, or you may be entitled to a refund. 

You must submit Form 8857, Request for Innocent Spouse Relief, 

no later than two years from the date of our first attempt to collect 

the outstanding debt, except for requests for equitable relief under 

Internal Revenue Code section 6015(f). For additional information, see 

Publication 971, Innocent Spouse Relief

Representation during the collection process

During the collection process, or an appeal before Appeals you can be 

represented by yourself, an attorney, a certified public accountant, an 

enrolled agent, an immediate family member, or any person enrolled 

to practice before the IRS. If you’re a business, full-time employees, 

general partners, or bona fide officers can also represent you.

To have your representative appear before us, contact us on your 

behalf, and/or receive your confidential material, file Form 2848, Power 

of Attorney and Declaration of Representative.

To authorize someone to receive or inspect confidential material, file 

Form 8821, Tax Information Authorization.

Sharing your tax information

During the collection process, we’re authorized to share your tax 

information in some cases with city and state tax agencies, the 

Department of Justice, federal agencies, people you authorize to 

represent you, and certain foreign governments (under tax treaty 

provisions).

We may contact a third party

The law allows us to contact others (such as neighbors, banks, 

employers, or employees) to investigate your case. You have the right 

to request a list of third parties contacted about your case.

Past Due Tax Returns

File all tax returns that are due, regardless of whether or not you can 

pay in full. File a past due return at the same location where you would 

file an on-time return.

If you do not voluntarily file your individual income tax return you risk 

losing your refund and we may file a substitute return for you. This 

return might not give you credit for deductions and exemptions you 

may be entitled to receive. We may send you a Notice of Deficiency 

proposing a tax assessment. Filing a past due return after the Notice 

of Deficiency was sent does not extend the 90 day period for filing a 

petition to the United States Tax Court. However, the past due return 

will be considered in determining whether there will be a reduction 

in the amount of tax increase previously proposed in the Notice of 

Deficiency. If you do not file a petition in Tax Court and a tax increase 

has been determined, we will proceed with our proposed assessment 

as a substitute return. If the IRS files a substitute return, it is still in 

your best interest to file your own tax return to take advantage of any 

exemptions, credits and deductions you are entitled to receive. The 

IRS will generally adjust your account to reflect the correct figures.