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Collect for Processing a Levy Time Frame

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Question: 
Is there a time frame as to when we should collect for processing a levy? Is it best to collect the fee when the bank receives notice of the levy or should the bank collect the fee after the 21 day period?
Answer: 

This can depend on the type of levy involved and whether it is subject to the Treasury Department's regulation on garnishment orders involving accounts containing federal benefits payments. It can also deposit on state law.

Your mention of a 21-day period suggests you are asking about an IRS levy, which is not subject to the Treasury Department regulation. State law, however, may affect your ability to collect a fee from the depositor or the depositor's account.

First published on 12/26/2021

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