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Federal/State Tax Levies and New Garnishment Rules

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Question: 
Are Federal and State Tax Levies subject to the new garnishment procedures? Would a Federal Tax Levy be considered to be from the US Government?
Answer: 

The definition of a garnishment order in the procedure is :

Garnishment order or order means a writ, order, notice, summons, judgment, or similar written instruction issued by a court or a State child support enforcement agency, including a lien arising by operation of law for overdue child support, to effect a garnishment against a debtor.

The IRS or State taxing authority would not fall into this definition and as such, tax levies are not covered by the new procedures. On a state levy, make sure that you verify that it is a levy for taxes and not for unpaid child support as that would be covered by the new rules.

First published on BankersOnline.com 8/22/11

First published on 08/22/2011

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