Skip to content

Does an IRS Tax Levy Apply to Protected Funds?

Answered by: 

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

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 BankersOnline.com 5/14/12

First published on 05/14/2012

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics