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#50060 - 12/20/02 02:57 PM IRS Levy
SteveG Offline
Joined: Jul 2001
Posts: 58
Question 1. How do you handle an IRS levy when there is, say, $20.00 in the account the day the levy comes in, but there are deposited checks that may or may not clear into the account. Do you need to keep looking and hitting it for the 21 days? Question 2. If the levy comes in with a name of the customer (common name) but no good social # match, do we need to hold for the 21 days while the IRS tries to get us more info or do we leave the account alone? Thanks.

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Operations Compliance
#50061 - 12/20/02 09:59 PM Re: IRS Levy
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,868
Cape Cod
Answer #1: The levy only reaches the good funds in the account on the day the levy is served on the bank. The 21 day "hold" period is only to provide the taxpayer with an appear period before you send the funds to the bottomless pits of the IRS.

Answer #2: IMHO, you don't touch a customer's account for an IRS levy unless you have a firm hit. If the SSN/EIN doesn't match, and the address doesn't match, I believe you respond "no funds." But keep a copy of what you used to make your decision. If you get a match on name and address, but not on TIN, I'd suggest calling the IRS and state your case and await guidance.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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