What is a partial release of the Wage Levy?

A Wage Levy is when the IRS actually contacts your employer and says they want a portion of your paycheck in satisfaction of some IRS debt.

If you don’t want a Wage Levy, you need to deal with the IRS and ultimately get a release of levy.

To obtain a release of levy, you need to have a satisfactory alternative to the IRS, either getting yourself set up as currently not collectible, entering into an Installment Agreement, or filing for and receiving an offer in compromise.

So once you satisfy one of those with the IRS, they will release the levy.

Are you going to totally or partially release the levy? Generally speaking, the IRS will totally release the levy if you have an Installment Agreement put in place, if you’re currently not collectible, or if you qualify for and receive an offer in compromise.

But in some instances the IRS will do a partial release of levy. This means the IRS has determined that you qualify for an Installment Agreement amount. Let’s just say that amount is $200. The IRS will release the levy except for the amount of $200 a month. That’s to ensure that you’re going to pay them on the Installment Agreement. Sometimes they do this when they feel the taxpayer has been noncompliant, hasn’t been filing taxes, or hasn’t been responding to IRS notices.

The IRS will do what’s known as a partial release of levy. They won’t release the levy 100%. They will only release it up to the amount you would pay if you had an Installment Agreement on a monthly basis with them.