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#1356922 - 03/12/10 06:32 PM Tax Levy
Xenamom Offline
New Poster
Xenamom
Joined: May 2009
Posts: 2
I need some help, we(the bank) received a IL Tax Levy for a customer, they have an account which I placed a hold for the amount of the levy, however, there is not enough funds in the account. Do I take any other funds that are deposited to the account, until the levy is satisfied? or just the amount that was available on the day the hold was placed?

Thanks in advance for any help. blush

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#1358139 - 03/16/10 04:05 PM Re: Tax Levy Xenamom
BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
A levy only attaches to funds the depositer held at the time the levy was served. The State of Illinois requires that you then hold the funds for 20 days prior to remitting them to the Illinois Department of Revenue to give the taxpayer an opportunity to contest with the state.
Also you are prohibited from dedecting a bank fee from the amount held. You may overdraw the customer's account for the fee and require that they pay the amount at a later time.

To levy additional funds, the state would have to send an additional levy to the bank.
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