Can the funds in a PUTMA account be held for an IRS tax levy?
The levy is against the beneficiary who is no longer a minor.

Technically, the beneficiary does not have access to the funds. Per the contract, he's still waiting on the custodian do make delivery. On the other hand, the beneficiary could demand delivery at any time and the custodian would be compelled to obey.

Rather than debate yourself, attach the levy to the account. The beneficiary has 21 days to convince the IRS that the money isn't really his. Uh-huh.