What is a tax levy and how should employers respond to one?
A tax levy is a legal seizure of property to satisfy a tax debt, including wages. The IRS issues federal tax levies under IRC 6331; state tax agencies issue similar orders. When an employer receives a tax levy notice for an employee, the employer must withhold a portion of wages each pay period and remit to the issuing agency until the debt is satisfied or the levy is released. Tax levies have higher priority than most other garnishments.
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