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#1999819 - 03/04/15 08:35 PM Garnishments and 21 day hold
ineedhelp Offline
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Joined: Mar 2014
Posts: 169
I was just looking over garnishments and the procedures written by a former employee states a 21 day hold should be placed and you don't count federal holidays in calculating the 21 days. Well, where do I find what type of days it is referring to? Is this business days or calendar days? Do we really exclude federal holidays? Please help me! Examiners are coming next month!!!

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Audit
#1999853 - 03/04/15 10:20 PM Re: Garnishments and 21 day hold ineedhelp
SonjaB Offline
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Joined: Sep 2010
Posts: 16
Wisconsin
Use calendar days. I have never heard the "exclude Federal Holidays" line. We've done Levies for years and years using a straight 21 calendar days and never had an issue.
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#1999906 - 03/05/15 02:30 PM Re: Garnishments and 21 day hold ineedhelp
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Forget about what your predecessor wrote down and read the instructions to IRS Form 668A(c):

Money in banks, credit unions, savings and loans, and similar institutions described in section 408(n) of the Internal Revenue Code must be held for 21 calendar days from the day you receive this levy before you send us the money. (Emphasis in the original)

Regulation CC excludes federal holidays because they are not "business" days. There is no regulation that suggests they are not calendar days.

P.S. Examiners do not review compliance with IRS levies. They know absolutely nothing about the subject.
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#2000329 - 03/06/15 07:06 PM Re: Garnishments and 21 day hold ineedhelp
Just Jean Offline
Platinum Poster
Joined: Feb 2002
Posts: 582
USA
Garnishments, IRS Levies or State Tax Warrants?

Garnishments are a state issue. Look to state law to answer that question.

IRS says on the face of the levy in bold print: "21 calendar days". It's underlined as well.

State Tax Warrants: State law again.

Just because something was written down as a procedure does not mean it is right. Times change, rules change, personnel change but some people do not change with the above. Good luck.

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#2001209 - 03/12/15 03:41 PM Re: Garnishments and 21 day hold ineedhelp
ineedhelp Offline
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Joined: Mar 2014
Posts: 169
Thanks for your responses! Sorry I'm slow about replying, it's been wild around here. The reason I started looking at garnishments is because it is in the FDIC request list under the category Garnishments on accounts with federal benefits. I had to provide them our procedures and I didn't know how to state the 21 days. So, even if the garnishment is not a tax levy, I still use the 21 calendar days and don't have to worry whether there is a federal holiday in there or not? Please confirm. I am a bit confused based on whether it matters if it a tax levy or just a garnishment for some type of debt.

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#2001355 - 03/12/15 09:51 PM Re: Garnishments and 21 day hold ineedhelp
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Don't panic. they don't care a wits end about that portion of the process. They only want to know how you determine the amount held, not how long you hold it and when you send it.
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#2006670 - 04/07/15 08:51 PM Re: Garnishments and 21 day hold ineedhelp
ineedhelp Offline
100 Club
Joined: Mar 2014
Posts: 169
Thanks! I will try to calm down.

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