A tax levy under United States Federal law is an administrative action by the Internal Revenue Service… where without going to court the IRS has the authority to seize property to satisfy a tax liability. Under Internal Revenue Code Section 6331, the IRS can “levy upon all property and rights to property” of a taxpayer who owes Federal tax.
What are your options for having your tax levy released? Of course there is the option of paying the IRS in full for some folks. However one of the most readily available options to remove a tax levy for most taxpayers is a formal monthly installment agreement with the IRS.
If your case constitutes a financial hardship and payment of your taxes will greatly impair your ability to support yourself and/or family, the IRS may lift the levy. In some cases, you may be able to wait out the 10 year statute of limitations placed on the IRS to collect back taxes. However, be aware that certain actions by you and/or the IRS can extend the statute of limitations.