Letter 3975, Rejection of Request for Return of Levied Property, tells you the IRS denied your request to return money or property it took by levy. It is signed by a collection group manager.
When Levied Property Can Be Returned
IRC Section 6343(d) allows the IRS to return levied property, or the money from its sale, in limited situations: the levy was premature or did not follow IRS procedures, you entered an installment agreement that did not allow levy, returning the property would help collect the tax, or returning it is in the best interests of the taxpayer and the government, which can include a taxpayer advocate's recommendation.
Your Options
Read the reason for the denial. If the IRS misunderstood the facts, you can submit additional information. You can also seek review through the Collection Appeals Program. If the property belonged to someone else, that person's remedy is a wrongful levy claim, not this request.
If the levy was made while you were protected, such as during a pending installment agreement, a pending offer, or a timely CDP hearing, say so specifically. Those facts carry weight.
If you received Letter 3975, call us at (813) 229-7100.