If you can afford a monthly payment, an installment agreement is usually the most direct route off a wage levy. You stop the IRS from taking whatever it can from each paycheck, and replace it with a payment you set based on your budget.
The law makes the release mandatory once the agreement exists. IRC 6343(a)(1)(C) says the IRS shall release a levy if “the taxpayer has entered into an agreement under section 6159 to satisfy such liability by means of installment payments, unless such agreement provides otherwise.”
The fine print in that rule
Two qualifications. First, the agreement can provide otherwise. IRM 5.11.2.3.1.6 gives the example: if the IRS grants an agreement that expressly says the levy should not be released, it will not be released on this ground. Read the agreement before you sign it.
Second, IRC 6343(a)(1) and Treasury Regulation 301.6343-1(b)(3) say the IRS is not required to release a levy under this ground if release would jeopardize the government’s secured creditor status. The regulation’s example is an intervening judgment lien creditor when no notice of tax lien has been filed. That is uncommon with wages, but it exists.
What you need before the IRS will agree
Filing compliance
IRM 5.14.5.2 is explicit: individual taxpayers must file all required returns and must be current with required withholding or estimated tax payments before an agreement is granted. If you have unfiled years, you are not getting a payment plan until they are filed. See unfiled returns and wage levies.
Current-year payments
If you are a W-2 employee, check your withholding. Many people with old balances are under-withheld for the current year too, which builds next year’s debt while you pay off last year’s. Fix it before you call.
Financial information, depending on the balance
Under the July 2026 revision of IRM 5.14.5, revenue officers can grant a Simple Payment Plan when the aggregate unpaid balance of assessment is $50,000 or less, the payment will full pay by the collection statute expiration date, and filing and payment compliance is in place. No Collection Information Statement is required for that type of agreement, and it does not have to be a direct debit or payroll deduction agreement. Larger balances, or plans that will not full pay, generally require a financial statement and more scrutiny.
IRM 5.14.5.2 also encourages taxpayers with balances above $50,000 to pay down to $50,000 or less when possible, which can eliminate the need for a financial statement.
Guaranteed agreements
For small income tax balances, IRC 6159(c) requires the IRS to accept an installment agreement for an individual if the income tax owed, not counting interest and penalties, is $10,000 or less, you have not failed to file or pay or had an installment agreement in the prior five years, you cannot pay in full now, the agreement full pays within three years, and you agree to stay compliant.
2026 user fees
The IRS charges a setup fee for long-term plans. As listed on the IRS payment plan page as of October 2026:
| Long-term plan type | Online | Phone, mail or in person |
|---|---|---|
| Direct debit | $29 | $107 |
| Other payment methods | $69 | $178 |
Under IRC 6159(f), low-income taxpayers, those with adjusted gross income at or below 250 percent of the applicable poverty level, pay no fee for a direct debit agreement, and are reimbursed fees on completion if they cannot use direct debit. Individuals can apply online for a long-term plan if they owe $50,000 or less in combined tax, penalties and interest and have filed all required returns, according to the same IRS page.
The protections once you are in
An installment agreement does more than release the current levy. IRC 6331(k)(2) bars levy:
- while an installment agreement request is pending,
- for 30 days after a rejection, and while a timely appeal of the rejection is pending,
- while the agreement is in effect, and
- for 30 days after termination, and while a timely appeal of the termination is pending.
IRC 6159(b)(5) generally requires 30 days’ written notice before the IRS terminates or modifies an agreement for a missed payment or similar reason. Compare that to a continuous levy, which has none of these protections. IRM 5.11.5.6 tells revenue officers not to use a continuous levy as an unofficial installment agreement for exactly that reason: taxpayers in a real agreement have additional protections.
How the release happens
- Propose the plan to the IRS office handling your case or the assigned revenue officer.
- Once the IRS approves it, ask for the levy release on Form 668-D. IRM 5.11.2.3.3 allows the release to be faxed to your employer when speed matters.
- Take a copy to payroll yourself.
- Make the first payment on time. Set up direct debit if you can; the fee is lower and you will not forget.
If your next paycheck is days away and the agreement will take longer, ask whether a partial release can bridge the gap.
Partial pay agreements
Not every installment agreement full pays the debt. IRC 6159(a) authorizes agreements that facilitate full or partial collection, and IRC 6159(d) requires the IRS to review partial collection agreements at least once every two years. A partial pay agreement requires a full financial statement and closer review. It still counts as an agreement under IRC 6159 for purposes of the levy release in IRC 6343(a)(1)(C).
Payroll deduction as an alternative
Some people prefer to have the payment taken from their paycheck under a formal agreement. That is a payroll deduction agreement on Form 2159, and it is very different from a levy. See payroll deduction agreement vs. wage levy.
Can you get back what was levied?
Sometimes. IRC 6343(d)(2)(B) lets the IRS return levied property when the taxpayer has entered into an installment agreement for the liability, unless the agreement provides otherwise. IRM 5.11.2.4.1 treats this as discretionary and subject to time limits. Ask. See getting levied wages back.
For a walkthrough of payment plan options from my firm’s main site, see installment agreements at GetIRSHelp.com.
A levy takes what it can. An installment agreement takes what you can afford. The law says pick the second and the first goes away.