The IRS Collection Process

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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.irs.gov/newsroom/videos 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 ��5

Federal Tax Lien: A legal claim against property �� 5

Notice of Federal Tax Lien: Provides public notice to creditors that a lien exists �� 5

Levy: A seizure of property �� 5

Summons: Used to secure information �� 7

IRS action affecting passports �� 7

Information for Taxpayers assigned to a Private Collection Agency ��7

Information for employers: Collection of employment tax ��8

About employment taxes �� 8

About trust fund taxes �� 8

Trust Fund Recovery Penalty �� 8

Additional information ��8

Innocent Spouse Relief �� 8

Representation during the collection process �� 8

Sharing your tax information �� 8

We may contact a third party �� 8

Past due tax returns �� 8

Publication 594 (Rev. 1-2026) Catalog Number 46596B Department of the Treasury Internal Revenue Service www.irs.gov

Overview: Filing a tax return, billing, and collection

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 have 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

www.taxpayeradvocate.irs.gov.

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.

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,

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

irs.gov/litcmap

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.

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 our 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. Revenue officers

help resolve taxes owed as part of the collection process. They tell

you about your rights, obligations, options, and consequences.

Unannounced visits are rare. Normally, before a visit the Revenue

Officer mails an appointment letter or calls to set up a visit. See

www.irs.gov/newsroom/how-to-know-if-its-really-the-irs.

www.irs.gov/newsroom/how-to-know-if-its-really-the-irs

Ways to pay your taxes

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

www.irs.gov/payments.

We offer several electronic payment options. To minimize interest

and penalties, we recommend paying your taxes in full. However, if

you’re unable to pay in full, you can request a payment plan or Offer

in Compromise. These payment options 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.

What you should do when you get an IRS bill

Options for paying in full

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 a

payment plan (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 a payment plan.

Online Account

You can make payments from your bank account through Online

Account. Go to www.irs.gov/your-account to sign up today and view

all of the information available.

IRS Direct Pay

IRS Direct Pay is free and available at www.irs.gov/DirectPay

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/pay-your-taxes-by-debit-or-credit-card for

authorized card processors and their phone numbers.

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.

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.

www.irs.gov/irs2go

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

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 1-800-8294933 (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.

Electronic Federal Tax Payment System

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

you a safe and convenient way to pay taxes by phone or online. To enroll

or for more information, visit www.eftps.gov or call 800-555-4477.

Cash

Taxpayers without bank account 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

www.irs.gov/paywithcash.

Partial payment plan (installment agreement)

If you cannot afford to full pay by the collection statute expiration date

(generally 10 years) you may qualify for a Partial Payment Installment Agreement. If you propose a payment amount that will not full

pay your entire balance by the collection statute expiration date, you

will be required to complete a collection information statement and

provide supporting financial information. If approved, your agreement

is subject to reviews every two years to determine if your financial

situation has changed. You may be required to provide a new financial

statement and supporting financial information during these reviews.

The financial information you provide may result in a reduction, an

increase, or no change to your monthly payment plan amount.

Options if you can’t pay in full now

Apply for a Payment Plan (Installment Agreement)

A payment plan 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 may apply to agreements over 180 days. There are

several ways to apply for a payment plan:

• Use the Online Payment Agreement application at www.irs.gov/

OPA. You can apply online for a reduced setup fee if the total

OPA

combined balance of 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 assessed payroll taxes, penalty and

interest for the current and prior calendar year, you can also use the

Online Payment Agreement application to request a payment plan.

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:

• Call the number on your bill or 1-800-829-1040: (individuals)

1-800-829-4933 (businesses).

• Because of your exceptional circumstances, paying the amount due

would cause an economic hardship or would be unjust.

• Complete Form 9465,

9465 Installment Agreement Request. In addition to Form 9465, if you want to make your payments by payroll

deduction, complete Form 2159,

2159 Payroll Deduction Agreement.

Follow form instructions to complete and send to IRS. Electronic

submission options are available.

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,

656-B Offer in Compromise Booklet.

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

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

• Visit a local IRS office. Please visit, www.irs.gov/help/contactyour-local-irs-office.

your-local-irs-office

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:

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 a payment plan, 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

payments

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

by direct debit. Low-income individuals who set up a payment plan 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,

13844 Application for Reduced

User Fee for Installment Agreements. You do not need to submit the

user fee with your payment plan application. The fee can be taken from

the initial payments made once the payment plan is accepted.

• Form 656-L,

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 tax debt under the law.

• Form 656,

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,

656-B Offer in Compromise

Booklet or visit www.irs.gov/payments/offer-in-compromise

www.irs.gov/payments/offer-in-compromise.

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.

To be eligible for a payment plan, 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

Form 433F,

433F

433-A and/or Form 433-B)

433-B and provide proof of your financial status.

For more information, see Publication 1854,

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). For individuals who filed their return

on time, the late payment penalty rate is reduced while an installment

agreement is in effect. The late payment penalty accrues at the rate

of 0.25% per month, instead of up to 1% per month. If we reject your

payment plan request, you may request that the IRS Independent

Office of Appeals (Appeals) review your case. For more information,

see Publication 1660,

1660 Collection Appeal Rights.

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:

If you’re unable to meet the terms of your approved payment plan,

please contact us immediately.

late were extraordinary and beyond your control, your right to request a

Collection Due Process or Equivalent Hearing may still be preserved.

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.

• We’re considering your request for a payment plan 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.

• 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 30 days after a

Notice of Determination is issued or if you file a timely petition to

the Tax Court, until or the Tax Court’s decision is final (including the

exhaustion of all rights of appeal following the Tax Court decision).

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 a payment

plan 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.

• 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.

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

an in-person conference at the Appeals office closest to your home or

place of business. You may be denied an in-person 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.

1660

For additional information about statute expiration dates, see www.

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

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 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.

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:

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.

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.

9423 The Form 9423 must be received or

postmarked within 3 business days of the conference with the Collection manager or collection may resume.

• 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

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.

• Notice of Levy and of Your Right to a Hearing

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

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. If your request is not received timely, and you can

demonstrate that you were diligent and the circumstances for being

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 payment

plan (a conference with the manager is recommended, but not

required). Submit your written Installment Agreement Appeal

request, preferably using Form 9423,

9423 Collection Appeal Request,

within the timeframe listed in your notice.

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,

For more information about the Collection Due Process and Collection Appeals Program, please see Publication 1660,

1660 Collection

Appeal Rights.

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

the IRS has accepted, or

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

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

automatic.)

If you don’t pay on time:

Understanding collection actions

For more information, see Publication 1450,

1450 Instructions for

Requesting a Certificate of Release of Federal Tax Lien.

Federal Tax Lien: A legal claim against property

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.

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 (such as wages and bank accounts).

We may withdraw a Notice of Federal Tax Lien if:

Notice of Federal Tax Lien: Provides public notice to

creditors that a lien exists

• You’ve entered into a payment plan 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 payment plan and meet certain

other conditions,

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.

• It will help you pay your taxes more quickly,

• We didn’t follow IRS procedures,

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.

• 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.

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 859-3203526 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/Small-Businesses-&-Self-Employed/Understanding-aFederal-Tax-Lien.

Federal-Tax-Lien

For more information, see Form 12277,

12277 Application for Withdrawal

of Filed Notice of Federal Tax Lien.

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,

783 How to Apply for a Certificate of

Discharge of Property from Federal Tax Lien.

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,

784

How to Apply for a Certificate of Subordination of Federal Tax Lien.

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. For more information, see Form 12153,

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. The Tax Court may consider a petition

submitted after the 30-day period if you can demonstrate that you

were diligent and that the circumstances for being late were extraordinary and beyond your control.

Appeal rights for withdrawal, discharge or subordination

If your application is denied you will receive Form 9423,

9423 Collection

Appeal Request and Publication 1660,

1660 Collection Appeal Rights,

with 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

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.

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

Throughout this publication, we will use both terms interchangeably.

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

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. For additional information about the Federal Payment

Levy Program, see www.irs.gov/businesses/small-businessesself-employed/federal-payment-levy-program.

self-employed/federal-payment-levy-program

• 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 seizure and sale) to your tax

debt. Prior to selling your property, we will seizure and 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. The IRS may use

additional means of announcing the sale if it believes doing so may

enhance the possibility of obtaining a higher price for the property.

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.

We can’t issue a new levy if you have a current or pending payment

plan, 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.

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.

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 1-800829-1040 (individuals) or 1-800-829-4933 (businesses). If you’re

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

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 principal residence and certain business assets.

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.

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,

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. The Tax

Court may consider a petition submitted after the 30-day period if you

can demonstrate that you were diligent and that the circumstances

for being late were extraordinary and beyond your control. If Collection Due Process rights aren’t available for your case, you may have

other appeal options, such as the Collection Appeals Program.

• 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.

Reasons we “release” a levy

The Internal Revenue Code specifically provides that we must release

a levy if we determine that:

• 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

• It will help you pay your taxes,

• You paid the amount you owe,

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

• You enter into a payment plan 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.

Summons: Used to secure information

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

will release a levy if it was issued:

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.

• 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,

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

on you, you may be required to:

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

be greater than the fair market value of the property,

• Testify,

• While a payment plan request, Innocent Spouse Relief request, or

Offer in Compromise was being considered or had been accepted

and was in effect, or

• Produce documents to prepare a Collection Information Statement,

Form 433-A or Form 433-B.

433-B

• Bring books and records, and/or

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.

• 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.

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:

• 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,

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

day after the day notice is given, or

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

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

third party didn’t comply.

• You enter into a payment plan to satisfy the liability for which the

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

of previously levied upon property.

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.

• We didn’t follow IRS procedures, or

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

IRS action affecting passports

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.

The Fixing America’s Surface 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 $66,000 as of 2026 (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 $66,000 (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

www.irs.gov/passports.

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,

4528 Making an Administrative

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

Information for Taxpayers assigned to a Private

Collection Agency

How to recover economic damages

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

payment, or there was a direct debit payment plan processing error

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

you paid. For more information, see Form 8546,

8546 Claim for Reimbursement of Bank Charges. If your claim is denied, you can sue the

federal government for economic damages.

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 you can review Publication 4518,

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/privatedebtcollection

www.irs.gov/privatedebtcollection.

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,

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.

Information for employers:

Collection of employment tax

Additional information

About employment taxes

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,

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,

971 Innocent Spouse Relief.

Innocent Spouse Relief

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,

966

Electronic Federal Tax Payment System: A Guide To Getting Started.

Representation during the collection process

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.

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.

• 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.

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

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

2848

Power of Attorney and Declaration of Representative.

• 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.

To authorize someone to receive or inspect confidential material, file

Form 8821,

8821 Tax Information Authorization.

About trust fund taxes

Sharing your tax information

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,

510

Excise Taxes.

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. Generally, we will

provide notification to you prior to making third party contacts. You

have the right to request a list of third parties contacted about your

case.

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,

15 Circular E, Employer’s Tax Guide.

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.

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,

784 Could You

be Personally Liable for Certain Unpaid Federal Taxes? or visit

www.irs.gov/TFRP.

www.irs.gov/TFRP

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.

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,

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.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.