State Tax Refund Levy
One of the situations where the IRS can levy first and offer the hearing afterward.
Full Definition
Internal Revenue Code section 6330(f)(2) provides that where the Secretary has served a levy on a State to collect a federal tax liability from a State tax refund, section 6330 does not apply — except that the taxpayer must be given the opportunity for a hearing within a reasonable period of time after the levy. Publication 594 lists a levy served to collect tax from a state tax refund among the exceptions to offering a hearing at least 30 days before seizing property, and states that the IRS will send a letter explaining the action. Publication 1660 describes four exceptions to issuing the pre-levy notice, including when the IRS levies a state tax refund, and states that a hearing may be requested after the levy in those instances. The Internal Revenue Manual refers to this as the State Income Tax Levy Program.
What to do next
If your state refund was taken, the IRS says it will send a letter explaining the action and your appeal rights. Read that letter for the hearing route, since here the opportunity comes after the levy rather than before it.
Sources
- 26 U.S.C. §6330 — Notice and opportunity for hearing before levy — United States Code, retrieved 2026-08-18
- Publication 594, The IRS Collection Process — Internal Revenue Service, retrieved 2026-08-18
- Publication 1660, Collection Appeal Rights — Internal Revenue Service, retrieved 2026-08-18
- Internal Revenue Manual 5.11.1, Background, Pre-Levy Actions and Restrictions on Levy — Internal Revenue Service, retrieved 2026-08-18
Last reviewed 2026-08-20 by Tax Resolution Clarity editorial.
Sourced to primary IRS materials and editorially reviewed. Not reviewed by a tax professional. Not tax advice.
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Where to go next
The IRS publishes the rules this page describes. Your own notice governs your dates.