Most of the time, the fastest path to a levy release runs through the collection employee whose name is on the levy, and then that employee's manager. But sometimes the system jams. The employee will not call back. The release never gets faxed. Day 19 arrives and your rent is due.
That is what the Taxpayer Advocate Service is for.
What TAS is
The Taxpayer Advocate Service is headed by the National Taxpayer Advocate under IRC § 7803(c). The IRM describes TAS case criteria as developed by the NTA under § 7803(c)(2)(C)(ii) and based in part on IRC § 7811, the statute that lets the NTA issue Taxpayer Assistance Orders (IRM 13.1.7).
Two features make TAS useful in a bank levy case:
- It takes economic harm cases. A frozen bank account is close to the definition.
- It has a lever no one else outside the courts has. A Taxpayer Assistance Order can require the IRS to release levied property.
Who qualifies
IRM 13.1.7 lists nine TAS case criteria. The first four are "economic burden" cases:
- Criteria 1: You are experiencing economic harm or are about to.
- Criteria 2: You face an immediate threat of adverse action.
- Criteria 3: You will incur significant costs if relief is not granted, including fees for professional representation.
- Criteria 4: You will suffer irreparable injury or long-term adverse impact if relief is not granted.
The next three are "systemic burden" cases: a delay of more than 30 days in resolving an account problem, no response by the date promised, or a system or procedure that failed (Criteria 5 to 7). Criteria 8 covers equity and taxpayer rights, and Criteria 9 is public policy.
A bank levy that took your rent money, your payroll, or your medical funds generally fits Criteria 1 or 2. A levy release the IRS promised and never sent can fit Criteria 6.
The "same day" rule
TAS is not supposed to be a first stop for problems the IRS can fix right away. The IRM tells collection employees to refer taxpayers to TAS when the contact meets TAS criteria and the employee cannot resolve the issue the same day, defined as within 24 hours. "Same day" cases include ones where the employee has taken steps within 24 hours to begin resolving the issue. Employees are told not to refer same-day cases unless the taxpayer asks to be transferred and the case meets TAS criteria (IRM 5.11.4.6; IRM 5.1.9.4.1).
Practically: call the number on the levy first. If you meet the criteria and the problem is not fixed or started within a day, ask for a TAS referral, or go to TAS directly. If you ask, and you meet the criteria, the employee should transfer you.
How to request help
The request form is Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order). The IRM directs employees to use Form 911 or the electronic e911 when they refer a case to TAS (IRM 5.11.4.6). The NTA toll-free number given in IRM 13.1.7 is 1-877-777-4778.
A strong Form 911 for a bank levy includes:
- A copy of the levy and the date it was served on the bank.
- The day 21 surrender date (count it with the 21-day hold calculator).
- What the frozen money was for, with proof: lease, eviction or shutoff notice, payroll register, medical bills.
- A financial statement, or a summary of income and expenses.
- What you asked Collection for, when, and what happened.
- The specific relief you want: release, partial release, or return of funds.
Taxpayer Assistance Orders
IRC § 7811(a) lets the NTA issue a Taxpayer Assistance Order if the taxpayer "is suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws are being administered." Section 7811(a)(2) says significant hardship includes:
- An immediate threat of adverse action.
- A delay of more than 30 days in resolving account problems.
- Significant costs, including professional fees, if relief is not granted.
- Irreparable injury or a long-term adverse impact if relief is not granted.
Under § 7811(b), a TAO may require the IRS, within a specified period, "to release property of the taxpayer levied upon," or to cease, take, or refrain from action under the collection chapter. Under § 7811(c), only the NTA, the Commissioner, or the Deputy Commissioner can modify or rescind a TAO, and only with a written explanation to the NTA.
One more provision favors you. Under § 7811(a)(3), when an IRS employee is not following published administrative guidance, including the Internal Revenue Manual, the NTA must construe the TAO factors "in the manner most favorable to the taxpayer." If the IRS ignored the IRM's own hardship rules, say so in your Form 911.
Applying for a TAO has a side effect. Section 7811(d) suspends the running of limitation periods for the actions covered, from the date of your application until the NTA's decision, and for any period the TAO specifies.
What happens to collection while TAS works
IRM 5.11.1.3.1 tells revenue officers that when TAS asks for a hold, they should allow TAS time to work with the taxpayer, and that collection action such as issuing a levy, "while not prohibited, will generally be suspended." If the revenue officer believes action is necessary, for example because assets are being dissipated, the officer should contact TAS first.
That is a practice, not a statutory bar. But it means a TAS case can stop the pile-on while the underlying problem gets fixed.
TAS and getting money back
TAS also matters after day 21. IRC § 6343(d)(2)(D) lets the IRS return levied property when, with the consent of the taxpayer or the National Taxpayer Advocate, return would be in the best interests of the taxpayer (as determined by the NTA) and the United States. IRM 5.11.2.4.1 lays out how that works: if the IRS decides return is not in the government's interest, it will not return the property regardless of the NTA's view. See getting levied funds returned.
What TAS is not
- It is not your lawyer. TAS is an office within the IRS. It works to fix problems in how the tax laws are being administered; it is not your attorney or your authorized representative.
- It does not replace deadlines. A TAS case does not extend your 30 days to request a CDP hearing. Protect that deadline separately. See CDP hearings.
- It is not a first stop. If the collection employee can fix the problem within a day, the IRM expects that to happen first.
The Taxpayer Advocate is the person you call when the system stops answering. Bring the paper, and bring the clock.
Related reading: economic hardship release and the Collection Appeals Program. For a broader look at IRS collection relief, see getirshelp.com.