Question 1

What exemptions exist for IRS levies?

Accepted Answer

Wage levies have exemptions based on the standard deduction plus personal exemptions divided by 52 weeks. Bank levies have no automatic federal exemption, but hardship relief is available. Social Security is limited to 15% under the Federal Payment Levy Program.

Question 2

What is the CDP appeal deadline?

Accepted Answer

You must file a Collection Due Process (CDP) appeal using Form 12153 within 30 days of receiving a levy notice. Missing this deadline forfeits your right to a CDP hearing, though an equivalent hearing may be available within one year.

Question 3

How long does the IRS hold bank levy funds?

Accepted Answer

Bank accounts are frozen for 21 days before the funds are sent to the IRS. During this period, you can request hardship release or file a CDP appeal. After 21 days, the bank releases the funds to the IRS.

Question 4

Can the IRS levy Social Security benefits?

Accepted Answer

Yes, but under the automated Federal Payment Levy Program (FPLP), the IRS can only levy 15% of Social Security benefits. Manual levies can exceed this, but hardship exemptions may apply.

Option	Action	Deadline	Effect
Request CDP Hearing	File Form 12153 within 30 days	30 days from levy	Stops collection during appeal
Claim Hardship	Submit Collection Information Statement	Immediately	May release levy if hardship proven
Request Currently Not Collectible	Demonstrate inability to pay	Anytime	Temporarily stops collection
Offer in Compromise	Settle for less than full amount	Before levy	Can prevent future levies
Payment Agreement	Set up installment agreement	Before levy	Can release levy with approved plan
Bank Levy Release	Claim hardship for bank levy	21 days after levy	Bank holds funds 21 days for IRS

IRS Levy Protection Calculator

Exemption Summary

CDP Appeal Deadline

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Levy Protection Key Points