How to Stop a Bank From Paying an IRS Levy

1. Seek a hardship release if the levy poses an economic hardship. You qualify for hardship if you were served notice of eviction or foreclosure or if you have a notice of utility disconnect. The IRS will then release the amount necessary to prevent the loss of your home or utility service. In some cases, this is not a full release, depending on the sum in your account when the levy attached.
2. Ask your bank if it has a specific levy or legal processing department. Get a fax number for the department. Most local branches do not process levy releases, so you can gain faster access to your funds having the IRS fax a release to the proper department.
3. Complete Form 433-F. This requests information regarding your personal income, expenses, household members and assets.
4. Gather documents to support items claimed. You will need to provide support for any items listed on your financial form, including your notices proving hardship.
5. Call the Automated Collection System at 800-829-3903. Enter your Social Security number when prompted and wait to speak to an agent. Hold times will vary. Reserve ample time to make the phone call and have access to a fax machine to send your documents.
6. Request a release of levy based on hardship. Explain to the agent taking your call that the bank levy is causing hardship. The agent will ask for documents indicating hardship and take the financial form information over the phone.
7. Fax documents supporting hardship. The agent will receive your documents and make a decision regarding the levy release. If the levy is released, ask the agent to fax the release to your bank.