Hold Special Circumstances
IRS Tax Levies
If the Internal Revenue Service (IRS) imposes a tax levy against a state payee, the paying agency must set up a mail code under the payee’s TIN payable to the IRS and based on the instructions on the levy notice.
Payees with an IRS levy may be on hold with a state debt. Before setting up the IRS levy mail code, agencies should check the Payee Hold Information (PYHOLD) screen using the payee’s TIN. If the payee is ON HOLD, contact Payment Services to determine if the HOLD BYPASS indicator should be updated.
See ACR 31166 regarding the UNMASK TIN and HOLD BYPASS indicators.
See also Mandatory Deductions: Tax Levies in Texas Payroll/Personnel Resource.