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Does an IRS Tax Levy Apply to Protected Funds?

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Does an IRS tax levy apply to protected funds? Our depositor receives SSI into their dda account.

An IRS levy does not fit the definition of "garnishment order" under the Treasury garnishment regulation. The account gets no special consideration when handling the levy. The customer has a right to contest the grab of SSI funds, but he deals directly with the IRS. The bank doesn't intercede.

First published on 5/14/12

First published on 05/14/2012

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