What is the 10-day notice requirement under IRC 6331(d)?

IRC 6331(d) (verify at IRS.gov and in current IRC text) requires that before the IRS may proceed with a levy, it must provide the taxpayer with written notice of intent to levy at least 30 days before the levy is executed. (The provision is often called the '10-day notice' in older practice materials reflecting an earlier version of the statute; the current statute requires 30 days. Practitioners should verify the current statutory notice period and all applicable notice requirements at IRS.gov and in current IRC text.) The notice must inform the taxpayer of the IRS's intent to levy, identify the amount owed, describe the right to request a Collection Due Process hearing under IRC 6330, and explain available collection alternatives. The notice is typically delivered as IRS Letter 1058 (Final Notice of Intent to Levy) or LT11 for individual balance-due taxpayers. Critically, this 30-day notice also triggers the taxpayer's right to a CDP hearing under IRC 6330. A timely CDP hearing request (filed within 30 days of the notice date using Form 12153) stays the levy while the appeal is pending before the IRS Office of Appeals. Verify all current notice forms, periods, and CDP-request deadlines at IRS.gov.

How does the Federal Payment Levy Program work for Social Security benefits under IRC 6331(h)?

IRC 6331(h) (verify at IRS.gov and in current IRC text) authorizes the IRS to levy on federal payments -- including Social Security benefit payments -- on a continuous basis through the Federal Payment Levy Program (FPLP). For Social Security benefits under Title II of the Social Security Act, the FPLP caps the levy at 15% of each monthly benefit payment. This is a notable and frequently misunderstood exception to the general IRC 6334(a)(9) rule that Social Security benefits are exempt from levy: that exemption applies to manual levies served directly on the Social Security Administration, not to the automated FPLP continuous levy. The FPLP operates automatically once the IRS refers the account to the program, and the 15% withholding continues every month until the liability is satisfied, the account is removed from the FPLP, or the taxpayer obtains a levy release. Practitioners representing Social Security recipients should determine whether the account is in the FPLP and, if collection alternatives are available, pursue removal through an installment agreement, OIC, or CNC determination. Verify all current IRC 6331(h) FPLP procedures, the 15% cap, and Social Security benefit categories covered at IRS.gov.

What is the difference between a jeopardy levy and a jeopardy assessment?

A jeopardy assessment under IRC 6861 (verify at IRS.gov and in current IRC text) allows the IRS to immediately assess a tax liability without waiting for the normal deficiency procedures -- bypassing the notice of deficiency and giving the taxpayer no pre-assessment Tax Court right. A jeopardy levy under IRC 6331(a) allows the IRS to immediately seize property without the 6331(d) advance notice. The two often accompany each other: when the IRS determines collection is in jeopardy, it may simultaneously make a jeopardy assessment and execute a jeopardy levy to secure the asset before the taxpayer can dissipate it. The taxpayer's post-event remedy for both is found in IRC 7429: the taxpayer may request an expedited administrative review within specified timeframes and, if unsatisfied, seek judicial review in the district court or Court of Claims. The judicial review standard for jeopardy actions is whether the making of the assessment or levy was reasonable under the circumstances and whether the amount assessed or levied was appropriate. Verify all current IRC 6861 jeopardy assessment rules and IRC 7429 review procedures at IRS.gov and in current IRC text.

Does a CDP hearing request stop a levy that is already in progress?

A timely CDP hearing request filed under IRC 6330 within 30 days of the 6331(d) levy notice stays the IRS from PROCEEDING with a levy, but it does not automatically RELEASE a levy that has already been served and is in effect. If the IRS served a wage levy on the employer before the taxpayer filed Form 12153, the CDP stay prevents the IRS from serving NEW levies but does not compel the IRS to release the existing wage levy that is already operational. To stop an already-active wage levy, the practitioner must separately request a levy release under IRC 6343 -- typically by entering an installment agreement or demonstrating economic hardship. The CDP hearing then becomes the venue for negotiating the collection alternative that will produce the release. This distinction is critical: the CDP stay and the IRC 6343 release are separate legal instruments with separate procedures. Verify the current IRS policy on CDP stays and existing levy releases at IRS.gov and in current IRM guidance.

Can the IRS levy a taxpayer's retirement account or pension?

Yes. The IRS can levy on distributions from qualified retirement accounts and pensions under IRC 6331, subject to any applicable exemptions under IRC 6334 for certain pension payments. The federal tax levy on a retirement account is generally a one-time levy on distributions payable at the moment of levy service; it does not force an early liquidation of the account unless the plan document permits or requires distribution. The plan administrator is obligated to surrender amounts payable under IRC 6332. Importantly, the 10% early distribution penalty under IRC 72(t) generally does NOT apply to distributions made pursuant to an IRS levy, which provides some relief for taxpayers whose retirement assets are seized before age 59.5. Practitioners should verify the IRC 72(t)(2)(A)(vii) exception and whether the specific retirement plan type is subject to any IRC 6334 exemption before advising clients on levy exposure to retirement assets. Verify all current IRC 6331, 6334, and 72(t) rules and plan-specific procedures at IRS.gov.

How does IRC 6331 interact with the statute of limitations on collection under IRC 6502?

The IRS's authority to collect by levy under IRC 6331 is time-limited by the collection statute of limitations under IRC 6502 (verify at IRS.gov and in current IRC text). Under IRC 6502(a), the IRS generally has 10 years from the date of assessment to collect the tax by levy or court proceeding. Once the Collection Statute Expiration Date (CSED) passes, the IRS loses its legal authority to levy; the tax is no longer enforceable by levy, and the IRC 6321 lien also ceases under IRC 6322. The CSED can be tolled and extended by numerous events listed in IRC 6503, including a pending offer in compromise, a pending CDP hearing, a pending bankruptcy, a taxpayer assistance order, and others. Each tolling event extends the CSED by the duration of the tolling period plus, in some cases, additional time. Practitioners must calculate the precise CSED accounting for all tolling events before advising clients on the remaining collection exposure and the urgency of any levy action. See the companion page on IRC 6503 CSED tolling and collection statute of limitations for a full analysis of tolling triggers.

IRC 6331 IRS Levy Statutory Authority and Jeopardy Guide

Q: What is the legal authority for an IRS levy under IRC 6331?

IRC 6331(a) (verify at IRS.gov and in current IRC text) grants the IRS the statutory authority to collect unpaid federal tax by levy upon all property and rights to property belonging to any person liable for the tax. The levy power extends to property in the possession of third parties, including employers, banks, brokers, and government agencies. The statute also authorizes levy on property in the hands of the taxpayer as a distress warrant -- the direct seizure mechanism. IRC 6331 is the primary enforcement mechanism for the IRS after assessment and demand, and it operates in tandem with the federal tax lien created under IRC 6321. Levy authority under IRC 6331 requires (1) a valid assessment, (2) a demand for payment that went unmet, and (3) (in most cases) the 10-day notice and opportunity for hearing required by IRC 6331(d). Verify all current IRC 6331 levy prerequisites, demand procedures, and administrative requirements at IRS.gov and in current IRC text before advising any client.

Q: What triggers a continuous levy, and why does it matter for wages?

Under IRC 6331(e) (verify at IRS.gov and in current IRC text), a levy on salary or wages -- including any compensation paid or received for personal services -- is a continuous levy. Once a levy on salary or wages is served on the employer or third-party payor, it attaches automatically to each future paycheck or disbursement as it becomes due, without the IRS having to serve a new levy for each pay period. The continuous nature means the employer has no legal authority to stop withholding once the levy is served; only an IRS levy release (Form 668-D) or full satisfaction of the tax debt ends the obligation. For practitioners, this is the critical distinction from a bank levy: a wage levy does not require re-service and will strip the client's paycheck every pay period until action is taken. The practitioner must act before the next pay cycle by pursuing a CDP hearing, an installment agreement, CNC determination, or OIC to obtain a levy release. Verify the current IRC 6331(e) continuous-levy rule and IRS release procedures at IRS.gov.

Q: How is a bank account levy different from a wage levy?

A bank account levy under IRC 6331 (verify at IRS.gov and in current IRC text) is a one-time snapshot levy, not a continuous levy. When the IRS serves a levy on a bank or financial institution, it captures the account balance at the moment of service and obligates the bank to surrender those funds (after any applicable 21-day holding period under IRC 6332(c)) to the IRS. Funds deposited into the account AFTER the levy is served are NOT captured by that levy instrument. To reach post-levy deposits, the IRS must serve a new levy. This contrasts sharply with the continuous wage levy under IRC 6331(e), which attaches to every future paycheck without re-service. Practitioners and clients are sometimes confused when a paycheck deposited the day after a bank levy escapes seizure -- that is the statute working as designed. The one-time nature of the bank levy does not mean clients are safe; the IRS can and does issue successive levies on the same account. Verify all current IRC 6331 and 6332 bank-levy procedures, holding periods, and re-levy practices at IRS.gov.

Q: What are the two jeopardy exceptions that bypass the 6331(d) notice requirement?

IRC 6331(a) and (d) provide two exceptions under which the IRS may levy without the otherwise-required advance notice: (1) the jeopardy levy exception and (2) the state tax refund exception. Under the jeopardy exception (IRC 6331(a)), if the IRS determines that collection of the tax is in jeopardy -- meaning the taxpayer is about to depart the country, conceal assets, dissipate assets, or otherwise take action that would render collection immediately at risk -- the IRS may levy immediately without any advance notice. This is the most aggressive collection tool in the IRS arsenal and can execute the same day as the jeopardy determination. The taxpayer may seek administrative review of the jeopardy levy under IRC 7429 within 30 days of the levy or the making of the jeopardy assessment, and may also seek an expedited judicial review; however, these remedies are post-levy, not pre-levy. The second bypass applies to levy on state tax refunds, where no advance notice is required. Practitioners who receive notice of a jeopardy levy must act immediately. Verify all current jeopardy levy procedures, IRC 7429 review rights, and timeframes at IRS.gov and in current IRC text.

Q: What is the 15% cap on Social Security levies and does it apply to all Social Security payments?

The 15% cap established by IRC 6331(h) (verify at IRS.gov and in current IRC text) applies to FPLP levies on Social Security benefit payments under Title II of the Social Security Act -- retirement, disability, and survivor benefits paid by the Social Security Administration. The cap limits each FPLP levy installment to 15% of the monthly benefit. The cap does NOT mean the IRS can take only 15% total; it means 15% of each monthly payment is levied continuously until the debt is satisfied. For a retiree receiving $2,000 per month in Social Security, for example, the FPLP would withhold $300 per month continuously. There is no corresponding 15% cap for manual (non-FPLP) levies on the same payments, but manual levies on Social Security benefits in the hands of the Social Security Administration are generally barred by the IRC 6334(a)(9) exemption (which applies to benefits before they reach the taxpayer's account). Supplemental Security Income (SSI) payments under Title XVI are not subject to FPLP levy. Verify the current categories of federal payments subject to FPLP, the applicable percentage caps, and SSI exemption status at IRS.gov.

Q: How does IRC 6331 interact with CDP rights under IRC 6330?

The relationship between IRC 6331 and IRC 6330 is direct and statutory: the 6331(d) notice of intent to levy is the triggering event for the taxpayer's right to a Collection Due Process hearing under IRC 6330. When the IRS issues the 6331(d) notice (typically Letter 1058 or LT11), the taxpayer has 30 days from the date of the notice to file Form 12153 requesting a CDP hearing with the IRS Independent Office of Appeals. A timely CDP hearing request automatically stays the levy -- the IRS cannot proceed with the levy while the CDP appeal is pending before Appeals, and if the taxpayer further appeals to Tax Court, the stay continues during Tax Court review. The CDP hearing provides an opportunity to raise collection alternatives (installment agreement, offer in compromise, CNC, or currently-not-collectible status), challenge the appropriateness of the levy, and (in limited circumstances where the taxpayer did not previously have an opportunity to dispute the liability) challenge the underlying tax liability itself. Missing the 30-day CDP window eliminates the right to Tax Court review of the levy action, though the taxpayer may still request an equivalent hearing before Appeals (without the Tax Court right). Verify all current IRC 6330 and 6331(d) deadlines, notice forms, and CDP rights at IRS.gov and in current IRC text.

Q: What property is exempt from IRS levy under IRC 6334?

IRC 6334 (verify at IRS.gov and in current IRC text) enumerates specific categories of property that are exempt from the IRS levy power under IRC 6331. The exemptions include: certain amounts of wages, salary, and other income (calculated based on the standard deduction and personal exemptions); fuel, provisions, furniture, and personal effects of the taxpayer's household up to a statutory dollar limit; books and tools of a trade, business, or profession up to a statutory limit; unemployment benefits; undelivered mail; certain annuity and pension payments from certain sources; workers' compensation; judgments for support of minor children; certain amounts of public assistance; certain military service-connected disability payments; and Social Security benefits paid directly to the taxpayer (subject to the FPLP exception under IRC 6331(h)). The exemptions under IRC 6334 are the statutory floor of property the IRS cannot seize; they are not negotiated. Practitioners should review the current IRC 6334 exemption categories and the annually adjusted dollar limits for wage and income exemptions at IRS.gov before advising clients on the scope of any active levy.

Q: Can a levy be released before the tax is fully paid?

Yes. IRC 6343(a)(1) (verify at IRS.gov and in current IRC text) requires mandatory levy release when any of five conditions are met, and those conditions do NOT require full payment of the tax. The five mandatory release grounds are: (1) the tax liability has been satisfied or has become legally unenforceable; (2) releasing the levy will facilitate collection (for example, allowing the taxpayer to sell the asset and pay the proceeds to the IRS); (3) the taxpayer has entered into an installment agreement, unless the agreement expressly provides that the levy continues; (4) the levy is creating an economic hardship -- that is, it prevents the taxpayer from meeting basic, reasonable living expenses; or (5) the fair market value of the levied property exceeds the tax liability and releasing a portion would not hinder collection. In practice, entering an installment agreement is the most common mechanism for releasing an active wage levy before full payment. An approved OIC also stops levy action while the offer is under consideration and requires levy release as a term of acceptance. Verify all current IRC 6343 release grounds, Form 668-D procedures, and IRS administrative requirements at IRS.gov.

IRC 6331 is the single statutory source of the IRS's power to collect delinquent federal tax by levy. It authorizes the seizure of wages, bank accounts, receivables, federal payments, and real property. Every collection practitioner representing clients in IRS enforcement must command the statute itself, not just the operational procedures built on top of it, because the distinction between a continuous levy and a one-time levy, the notice requirements that precede most levies, and the jeopardy exceptions that bypass those requirements all flow directly from the text of IRC 6331.

This page is the statutory anchor for the levy cluster on AmericasTax.com, focusing on what the code section authorizes, how it varies by property type, where it interacts with CDP rights under IRC 6330, and how the Federal Payment Levy Program operates under IRC 6331(h). For the companion page covering property the IRS cannot reach by levy, see IRC 6334 property exempt from IRS levy.

All statutory citations reference IRC 6331 and related code sections as in effect through July 2026. Verify all levy requirements, notice periods, dollar thresholds, and procedural rules at IRS.gov and in current IRC text before advising any client.

1. Statutory Foundation: What IRC 6331 Actually Authorizes

IRC 6331(a) provides that if any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it is lawful for the Secretary to collect the tax by levy upon all property and rights to property (except those exempted under IRC 6334) belonging to the person or on which there is a lien under IRC 6321. Levy extends to property in the hands of third parties (banks, employers, brokers, and government agencies), not just property in the taxpayer's direct possession.

Three prerequisites must exist before the IRS can levy: (1) a valid assessment of the tax under IRC 6201, (2) a notice and demand for payment under IRC 6303 that went unheeded, and (3) for most levies, the 30-day notice of intent to levy required by IRC 6331(d). The federal tax lien under IRC 6321 and the levy under IRC 6331 are separate instruments: the lien secures the government's claim in priority disputes with third parties; the levy is the collection act that converts the IRS's legal claim into actual cash or property.

IRC 6331(a) -- Core Text (paraphrased; verify at IRS.gov) If any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it is lawful for the Secretary to collect the tax by levy on all property and rights to property belonging to such person or on which there is a lien under IRC 6321 for the payment of such tax. Levy may be made upon any property, real or personal, tangible or intangible, of the delinquent taxpayer. The statute also specifically authorizes distraint by levy in the manner provided by section 6331 itself.

2. Continuous vs. One-Time Levy: The Core Distinction

The most consequential practitioner distinction in the statute is whether a levy instrument, once served, continues to attach to future property as it comes into existence, or whether it captures only a single snapshot of property at the moment of service. IRC 6331(e) draws this line expressly for salary and wages.

Continuous Levy: Wages and Salary (IRC 6331(e))

Under IRC 6331(e), a levy on salary or wages, or other compensation for personal services (including distributions and profits from a business), constitutes a continuous levy. That means a single levy instrument, once served on the employer or third-party payor, attaches to every future paycheck or compensation payment as it becomes due and payable, without any need for the IRS to re-serve or re-issue the levy. The employer has no legal basis to stop withholding once a valid wage levy is served. Only an IRS levy release (Form 668-D) or full satisfaction of the liability ends the obligation.

The continuous wage levy is the IRS's most effective day-to-day collection tool for employed taxpayers precisely because it is self-executing after service. Each pay period, the employer must calculate the exempt amount under IRC 6334 and remit the balance directly to the IRS.

Critical: Continuous Levy on Wages Once a wage levy (IRS Form 668-W) is served on an employer, it is continuous and attaches to every paycheck automatically. The employer has no legal right to stop withholding without a formal IRS levy release (Form 668-D). Practitioners must act before the next pay cycle. A CDP hearing request filed in time stays any new levy action, but it does NOT automatically release a levy already in effect -- a separate release request to the IRS is required. Verify current IRS levy release procedures at IRS.gov.

One-Time Levy: Bank Accounts and Most Other Property

For property types not covered by the IRC 6331(e) continuous levy rule, the general levy is a one-time snapshot instrument. When the IRS serves a levy on a bank or financial institution (Form 668-A), the levy captures the account balance at the moment of service and obligates the institution to hold those funds (subject to the IRC 6332(c) 21-day holding period for bank accounts) and then surrender them to the IRS. Deposits made after the date of the levy are NOT captured. Accounts receivable billed before the levy date are captured; invoices issued after the levy date are not.

The same one-time logic applies to brokerage accounts, state tax refunds, and most other non-wage property: the levy seizes what exists at the moment of service. To reach subsequent property, the IRS must issue a new levy. In practice, the IRS issues successive bank levies on the same account when a single levy does not satisfy the liability.

Practitioner Note: The Bank Levy Snapshot A bank account levy is a one-time snapshot of the account balance at the moment of service, not a continuous levy. Funds deposited after the levy date are not captured by that levy instrument. Many practitioners and clients are confused when a subsequent paycheck or deposit escapes an active bank levy -- that is the statute working as designed. The continuous wage levy under IRC 6331(e) and the one-time bank levy under the general provision of IRC 6331 are legally distinct instruments. The IRS must serve a new levy to capture later deposits.

3. The IRC 6331(d) Notice of Intent to Levy

IRC 6331(d) prohibits the IRS from levying on property (with two jeopardy-based exceptions) until it provides the taxpayer with written notice of intent to levy at least 30 days before the levy is executed. The notice must state the amount of the unpaid tax, describe the right to a CDP hearing under IRC 6330, and identify available collection alternatives. IRS Letter 1058 (Final Notice of Intent to Levy and Notice of Your Right to a Hearing) and LT11 serve as the primary 6331(d) notice vehicles for individual balance-due taxpayers.

The 30-day advance period is not merely procedural. It is the window in which the taxpayer may file Form 12153 to request a CDP hearing, which triggers the statutory levy stay under IRC 6330(e)(1). Missing this window forfeits Tax Court review rights, reducing the taxpayer to an equivalent hearing before Appeals without judicial review of the levy decision.

CDP Rights Triggered by the 6331(d) Notice The 30-day notice under IRC 6331(d) triggers the right to a Collection Due Process hearing under IRC 6330. A timely CDP hearing request (Form 12153, filed within 30 days of the notice date) stays the levy while the appeal is pending. The 30-day clock runs from the date printed on the notice, not from the date the taxpayer receives it. Missing the window means losing Tax Court review rights. Practitioners should calendar the deadline from the notice date, not the received date, and file Form 12153 immediately.

4. Jeopardy Levy: Bypassing the 6331(d) Notice

IRC 6331(a) provides two exceptions under which the 30-day 6331(d) notice is not required before the IRS may levy. The more consequential of the two is the jeopardy levy.

The Jeopardy Levy Standard

If the IRS determines that collection of the tax is in jeopardy, it may levy immediately, without issuing any advance notice. A collection is considered in jeopardy when the IRS determines that the taxpayer is about to: depart from the United States or conceal themselves; assign, dissipate, or conceal assets; or otherwise do something that would place the liability beyond the reach of the government's collection process. Jeopardy levies and jeopardy assessments (under IRC 6861) often accompany each other.

The jeopardy levy is the most aggressive tool in the IRS collection arsenal. It can execute the same day as the jeopardy determination. Post-levy, the taxpayer has two remedies: (1) an expedited administrative review by the IRS within five days of requesting it (under IRC 7429(a)(2)), and (2) judicial review in the district court or Court of Claims within 30 days after the expiration of the five-day administrative review period (under IRC 7429(b)). These are reactive remedies, not pre-levy rights. The taxpayer cannot obtain a pre-levy injunction except in extraordinary circumstances under narrow constitutional theories.

Warning: Jeopardy Levy Bypasses All Advance Notice The 10-day and 30-day notice requirements under IRC 6331(d) do NOT apply when the IRS determines that collection is in jeopardy. A jeopardy levy can execute immediately, with no prior warning to the taxpayer or their representative. Remedies are post-levy (IRC 7429 review). Practitioners who receive word of a jeopardy levy must act same-day on any available emergency relief. The standard for jeopardy determinations is subjective and broadly construed by the IRS; courts review the reasonableness of the determination, not whether jeopardy actually existed.

The Second Exception: State Tax Refunds

IRC 6331(d)(3) provides a second bypass: no advance notice is required before the IRS levies on a state tax refund. State income tax refunds owed to a taxpayer are subject to levy by the IRS without the 30-day notice, and therefore without triggering the CDP hearing right under IRC 6330. Verify current IRS procedures for state tax refund levies at IRS.gov.

5. IRC 6331(h): The Federal Payment Levy Program

IRC 6331(h) authorizes the IRS to continuously levy certain federal payments through the Federal Payment Levy Program (FPLP), an automated matching system that intercepts disbursements from federal agencies before they reach the taxpayer. Two categories are particularly significant for collection practitioners.

Social Security Benefits: The 15% Cap

For Social Security benefit payments under Title II of the Social Security Act (retirement, disability, and survivor benefits), the FPLP caps each continuous levy installment at 15% of the monthly benefit. This is a statutory cap, not a negotiated figure. The FPLP 15% levy is continuous: it applies to every benefit payment until the liability is satisfied, the account is removed from the FPLP, or a levy release is issued.

The 15% FPLP levy represents a specific and important exception to the general Social Security exemption under IRC 6334(a)(9). That exemption bars the IRS from manually levying on Social Security benefits in the hands of the Social Security Administration. It does NOT protect against the automated FPLP. The practical result: a manual levy served on the SSA cannot capture Social Security benefits, but the FPLP can levy 15% of each payment continuously once the account is enrolled. Supplemental Security Income (SSI) under Title XVI is not subject to FPLP levy.

Social Security and the 15% FPLP Exception The IRC 6334(a)(9) exemption for Social Security benefits applies to manual levies only. The Federal Payment Levy Program under IRC 6331(h) can continuously levy Social Security Title II benefit payments at 15% per month despite the IRC 6334 exemption. This is a statutory carve-out, not a loophole. Practitioners representing retirees or disabled taxpayers must check whether the account is enrolled in the FPLP and pursue removal through an installment agreement, OIC, or CNC determination to stop the withholding.

Federal Contractor Payments: IRC 6331(h)(2)(A)

IRC 6331(h)(2)(A) extends the FPLP to federal contractor and vendor payments -- disbursements made by federal agencies to businesses and individuals under government contracts, grants, or other payment instruments. Unlike the Social Security 15% cap, the FPLP levy on contractor payments can operate at higher rates under applicable regulations and program rules (verify current rates at IRS.gov). The continuous levy means each contract disbursement from the agency is intercepted automatically.

Federal contractors with tax debt face an asymmetric risk: the FPLP can disrupt contract performance by intercepting milestone payments or regular disbursements before the contractor ever receives them. Once the IRS refers the account to the FPLP, the levy operates without further IRS action at the collection level. Practitioners should assess FPLP exposure as a priority in any engagement involving a federal contractor client.

6. The IRC 6334 Exemptions: What the Levy Cannot Reach

IRC 6334 is the companion code section that carves out property the IRS cannot reach by levy under IRC 6331. The exemptions include specified amounts of wages and salary calculated using a formula tied to the standard deduction and personal exemptions, fuel and household effects up to a dollar limit, tools and books of a trade up to a statutory cap, unemployment compensation, undelivered mail, certain pension and annuity payments, workers' compensation, support-order judgments for minor children, public assistance payments, certain military disability payments, and Social Security benefits (as discussed above, subject to the FPLP exception).

The IRC 6334 wage exemption is not the same as the wage garnishment exemption under the Consumer Credit Protection Act (CCPA): the IRC 6334 exemption formula typically yields a lower exempt amount than the CCPA floor, which is why IRS wage levies can leave employees with less take-home pay than a state court garnishment. For full analysis of each exemption category, see the companion page: IRC 6334 property exempt from IRS levy.

7. IRC 6331 and CDP Rights Under IRC 6330

The interaction between IRC 6331 and IRC 6330 is one of the most action-forcing relationships in tax collection law. The 6331(d) levy notice is the statutory trigger for the CDP hearing right. Once the IRS issues the notice, the taxpayer has 30 days to file Form 12153. A timely request: (1) stays the levy while the CDP appeal is pending before the IRS Independent Office of Appeals; (2) allows the taxpayer to raise collection alternatives (installment agreement under IRC 6159, offer in compromise under IRC 7122, CNC determination, or innocent spouse relief); (3) in limited circumstances, permits challenge to the underlying tax liability where the taxpayer had no prior opportunity to contest it; and (4) preserves the right to seek Tax Court review of an unfavorable Appeals determination.

The CDP levy stay is not a permanent hold: if the taxpayer does not timely request a CDP hearing, the levy stay does not arise. If the taxpayer files for Tax Court review after an adverse CDP determination, the levy stay continues during Tax Court proceedings. If the taxpayer misses the 30-day CDP window, they may still request an equivalent hearing (which provides Appeals review but no Tax Court right and no automatic levy stay). For comprehensive analysis of CDP rights, see IRC 6330 and 6320 collection due process CDP rights.

Practitioner Strategy: CDP First, Then Collection Alternatives When a client receives a 6331(d) levy notice, the first priority is filing Form 12153 to request the CDP hearing before the 30-day deadline. The timely filing stays the levy and preserves Tax Court rights. While the CDP appeal is pending, pursue the appropriate collection alternative: installment agreement, offer in compromise, or CNC determination. Concurrently, review the client's property inventory against the IRC 6334 exemption list to identify what the IRS cannot reach. For clients already in the FPLP for Social Security or contractor payments, a collection alternative that triggers levy release is the only path to stopping automatic withholding. Contact IRC 6343 levy release and wrongful levy remedies analysis for release grounds.

8. Levy Type Comparison by Property

The table below summarizes key attributes of the IRS levy under IRC 6331 across the primary property types practitioners encounter. Verify all current levy rules, notice requirements, and FPLP procedures at IRS.gov before advising any client.

Property Type	Authority	One-Time vs. Continuous	6331(d) Notice Required	Jeopardy Bypass Available	IRC 6334 Exemption Applies	Key Practitioner Note
Salary and Wages	IRC 6331(a), 6331(e)	Continuous	Yes	Yes	Yes (calculated exemption)	Single serve attaches to every paycheck; employer cannot stop without Form 668-D release
Bank Account Balance	IRC 6331; IRC 6332(c)	One-time snapshot	Yes	Yes	No (no bank-account exemption)	21-day hold before bank must surrender; post-levy deposits not captured
Accounts Receivable	IRC 6331	One-time (invoices existing at levy date)	Yes	Yes	No	Only receivables billed before levy date are captured; future invoices require new levy
Federal Contractor Payments	IRC 6331(h)(2)(A)	Continuous (FPLP)	No (FPLP automated)	Yes	No	FPLP intercepts each agency disbursement; can disrupt contract performance
Social Security Benefits (Title II)	IRC 6331(h)	Continuous (FPLP, 15% cap)	No (FPLP automated)	Yes	6334(a)(9) exempts manual levy; FPLP 15% applies	FPLP bypasses IRC 6334(a)(9) exemption; SSI (Title XVI) not subject to FPLP
Federal Pension Payments (FPLP)	IRC 6331(h)	Continuous (FPLP, 15% cap)	No (FPLP automated)	Yes	Certain pension payments have IRC 6334 exemption; FPLP may override	Verify whether specific pension is covered by 6334 exemption vs. FPLP levy
State Tax Refunds	IRC 6331; 6331(d)(3)	One-time	No (explicit statutory bypass)	Yes	No	No 30-day notice required; no CDP hearing right triggered; IRS levies without advance notice
Brokerage and Investment Accounts	IRC 6331	One-time snapshot	Yes	Yes	No	Securities must be reduced to cash; broker must surrender within levy instrument timeframe
Rental Income	IRC 6331	Periodic (one-time per rent payment due)	Yes	Yes	No	Levy served on tenant captures rent payment due at that date; future rent requires separate levy or series of levies
Retirement Account Distributions	IRC 6331	One-time per distribution	Yes	Yes	Certain pension annuities may be partially exempt under 6334	Levy on plan administrator captures distributions payable at levy date; early distribution penalty under IRC 72(t) may not apply to involuntary levy
Real Property	IRC 6336 distraint (not IRC 6331 levy)	N/A (seizure and sale)	Yes (6330 notice required)	Yes	Principal residence has additional procedural safeguards	Real property is seized and sold under IRC 6335-6336, not the IRC 6331 levy instrument; principal residence requires district court approval
Property in Possession of Third Party	IRC 6331; IRC 6332	One-time (property held at levy date)	Yes	Yes	Depends on property type	Third party (custodian, bailee) must surrender property under IRC 6332 or face personal liability for failure to comply; exceptions for contested property

9. Related Statutes and the Collection Cluster

IRC 6331 does not operate in isolation. The statute works within a network of related collection provisions that practitioners must navigate together:

IRC 6321 (Federal Tax Lien): The lien attaches to all property and rights to property upon assessment and demand; the levy is the enforcement act that converts the lien into collected funds.
IRC 6330 and 6320 (CDP Rights): The 6331(d) levy notice triggers CDP hearing rights. For a full analysis of hearing procedures, Tax Court jurisdiction, and the equivalent hearing option, see IRC 6330 and 6320 collection due process CDP rights.
IRC 6334 (Exempt Property): Enumerates property the IRS cannot reach by levy; see the companion page at IRC 6334 property exempt from IRS levy.
IRC 6343 (Levy Release): Requires mandatory levy release on five grounds, including installment agreements and economic hardship; see IRC 6343 levy release and wrongful levy remedies.
IRC 6503 (CSED Tolling): Events that toll the collection statute -- including pending CDP hearings -- extend the IRS's levy window; see IRC 6503 CSED tolling and collection statute of limitations.
IRC 7122 (Offer in Compromise): An accepted OIC terminates outstanding levy action; see IRC 7122 offer in compromise statutory framework.

10. Frequently Asked Questions: IRC 6331 Levy

What is the legal authority for an IRS levy under IRC 6331?

IRC 6331(a) grants the IRS the statutory authority to collect unpaid federal tax by levy upon all property and rights to property belonging to any person liable for the tax. The levy power extends to property in the possession of third parties, including employers, banks, brokers, and government agencies. Levy authority requires (1) a valid assessment, (2) a demand for payment that went unmet, and (3) in most cases, the 30-day notice required by IRC 6331(d). Verify all current IRC 6331 levy prerequisites and administrative requirements at IRS.gov and in current IRC text before advising any client.

What triggers a continuous levy, and why does it matter for wages?

Under IRC 6331(e), a levy on salary, wages, or other compensation for personal services is a continuous levy. Once served on the employer, it attaches automatically to every future paycheck without re-service. The employer must withhold every pay period until the IRS issues Form 668-D releasing the levy or the debt is fully paid. Practitioners must act before the next pay cycle by filing a CDP hearing request or securing a collection alternative. Verify the current IRC 6331(e) continuous-levy rule and IRS release procedures at IRS.gov.

How is a bank account levy different from a wage levy?

A bank account levy is a one-time snapshot instrument. It captures the account balance at the moment of service and obligates the bank to hold those funds for the IRC 6332(c) 21-day period and then remit them to the IRS. Funds deposited after the levy date are not captured. To reach those deposits, the IRS must issue a new levy. The continuous wage levy under IRC 6331(e) and the one-time bank levy under the general provision of IRC 6331 are legally distinct instruments. Verify current IRC 6331 and 6332 bank-levy procedures and holding periods at IRS.gov.

What is the 30-day notice requirement under IRC 6331(d)?

IRC 6331(d) requires the IRS to provide at least 30 days advance written notice before levying on property. The notice (typically IRS Letter 1058 or LT11) must state the amount owed, describe CDP hearing rights under IRC 6330, and identify available collection alternatives. The 30-day clock runs from the date printed on the notice. A timely CDP hearing request (Form 12153, filed within 30 days) stays the levy. Verify all current notice forms, periods, and CDP-request procedures at IRS.gov.

What are the two jeopardy exceptions that bypass the 6331(d) notice?

IRC 6331 provides two bypass exceptions: (1) the jeopardy levy, where the IRS determines collection is immediately at risk due to asset dissipation, flight, or concealment -- the IRS may levy immediately with no advance notice, and post-levy review is available under IRC 7429 within 30 days; and (2) the state tax refund levy under IRC 6331(d)(3), where no advance notice is required. Jeopardy levy remedies are post-levy, not pre-levy. Practitioners receiving notice of a jeopardy levy must act same-day on any available emergency relief. Verify current IRC 7429 review procedures and timeframes at IRS.gov.

How does the FPLP Social Security levy work under IRC 6331(h)?

IRC 6331(h) authorizes the IRS to continuously levy Social Security Title II benefit payments through the Federal Payment Levy Program at a rate of 15% per monthly payment. The FPLP operates automatically once the account is enrolled, without the IRS having to re-serve the levy monthly. It continues until the liability is satisfied, the account is removed from the FPLP, or a levy release is issued. Supplemental Security Income (SSI) under Title XVI is exempt from the FPLP. Verify current FPLP procedures and Social Security benefit categories subject to the program at IRS.gov.

What is the 15% cap on Social Security levies and does it apply to all Social Security payments?

The 15% cap under IRC 6331(h) applies to FPLP levies on Social Security Title II benefit payments (retirement, disability, survivor). It limits each levy installment to 15% of the monthly benefit. SSI payments under Title XVI are not subject to FPLP levy. The cap applies per payment, not to the total debt; 15% is levied from each monthly benefit continuously until the debt is resolved. Manual levies served directly on the SSA are barred by the IRC 6334(a)(9) Social Security exemption -- the FPLP is the statutory exception. Verify current FPLP rates, procedures, and covered payment types at IRS.gov.

How does IRC 6331 interact with CDP rights under IRC 6330?

The 6331(d) levy notice is the statutory trigger for CDP hearing rights under IRC 6330. The taxpayer has 30 days from the notice date to file Form 12153. A timely filing stays the levy while the CDP appeal is pending before the IRS Office of Appeals and, if appealed, during Tax Court review. At the CDP hearing, the taxpayer may raise collection alternatives (installment agreement, OIC, CNC), contest the appropriateness of the levy, and in limited circumstances challenge the underlying liability. Missing the 30-day window forfeits Tax Court rights. See the companion page on IRC 6330 and 6320 collection due process CDP rights for full analysis.

What property is exempt from IRS levy under IRC 6334?

IRC 6334 exempts: a calculated amount of wages and salary based on the standard deduction and personal exemptions; fuel, provisions, furniture, and personal effects up to a statutory limit; books and tools of a trade up to a statutory cap; unemployment benefits; undelivered mail; certain pension and annuity payments; workers' compensation; support judgments for minor children; certain public assistance; certain military disability payments; and Social Security benefits (subject to the FPLP exception under IRC 6331(h)). The wage exemption is typically lower than the Consumer Credit Protection Act floor, which is why IRS wage levies can leave less take-home pay than a state court garnishment. Verify the current IRC 6334 exemption categories and annually adjusted dollar limits at IRS.gov.

Can a levy be released before the tax is fully paid?

Yes. IRC 6343(a)(1) requires mandatory levy release when any of five conditions exist, none of which require full payment: (1) the tax is satisfied or legally unenforceable; (2) releasing the levy will facilitate collection; (3) the taxpayer has entered an installment agreement (unless the agreement allows continued levy); (4) the levy creates economic hardship preventing basic living expenses; or (5) the fair market value of the levied property exceeds the liability and partial release would not hinder collection. In practice, entering an installment agreement is the most common pre-payment release mechanism for wage levies. Verify current IRC 6343 release procedures and Form 668-D requirements at IRS.gov.

What is the practitioner checklist when a client receives a 6331(d) levy notice?

(1) Identify the notice date and calculate the exact 30-day CDP deadline -- the clock runs from the notice date, not the received date. (2) File Form 12153 before the deadline to trigger the levy stay and preserve Tax Court rights. (3) Determine the appropriate collection alternative (installment agreement, OIC, CNC, innocent spouse). (4) Review the client's property against IRC 6334 exemptions. (5) For employed clients, confirm whether a wage levy has already been served on the employer. (6) For Social Security recipients, check FPLP enrollment and the 15% withholding status. (7) Review the CSED for remaining collection time. (8) Preserve any procedural deficiency arguments for the CDP hearing. Act before the next pay cycle on active wage levies.

What is the federal contractor payment levy under IRC 6331(h)(2)(A)?

IRC 6331(h)(2)(A) authorizes continuous FPLP levies on payments made by federal agencies to contractors and vendors. Unlike the Social Security 15% cap, federal contractor payment levies can operate at higher rates under applicable regulations (verify current rates at IRS.gov). The levy intercepts each disbursement automatically once the account is enrolled in the FPLP, without re-service. Federal contractors with back-tax debt face the risk of having contract payments intercepted before receipt, potentially disrupting operations. Practitioners should assess FPLP contractor exposure as a priority and pursue a collection alternative immediately to obtain removal from the FPLP.

Claims Flagged for Compliance Review

The following statements in this guide involve legal standards or statutory interpretations that practitioners should verify against current IRC text and IRS guidance before relying on them in a client engagement:

The 30-day advance notice requirement under IRC 6331(d) (verify current statutory notice period and any regulatory modifications at IRS.gov).
The 15% cap on FPLP levies against Social Security Title II benefits under IRC 6331(h) (verify current cap and covered benefit types at IRS.gov).
The statement that SSI under Title XVI is not subject to FPLP levy (verify at IRS.gov and in current Treasury regulations).
The IRC 6332(c) 21-day holding period for bank account levies (verify current statutory period at IRS.gov).
The IRC 7429 post-levy review window of 30 days after the five-day administrative review period (verify current deadlines and procedures at IRS.gov).
The statement that the IRC 6334(a)(9) Social Security exemption applies to manual levies but not the FPLP (verify current exemption scope and FPLP program rules at IRS.gov).
The statement that an approved installment agreement triggers mandatory levy release under IRC 6343(a)(1)(C) unless the agreement expressly provides otherwise (verify current IRS installment agreement and levy release policy at IRS.gov).