IRS Tax Levies

A levy is a legal seizure of property to satisfy a tax debt. An individual's wages, salary and other income can be levied. Wages, salary, and other income include payment for personal services in a work relationship.

Processing the IRS Notice of Levy

The IRS Notice of Levy, Form 668-A(ICS)IRS Notice of Levy, Form 668-A(ICS) is submitted to OBM to place a hold on the supplier record in OAKS FIN. OBM State Accounting receives the "Notice of Levy" form, and completes and mails the appropriate sections to the Supplier. State Accounting will send the forms to supplier@ohio.gov. This topic outlines the steps to process the "Notice of Levy" forms from the OSS Supplier Operations tracker.

Completing the "Notice of Levy"

• Refer to the search instructions in the Reviewing Supplier Information topic to locate the supplier record in OAKS FIN.
• Levies are added to any DBAs associated with the Tax ID, in addition to the parent company.
  

Updating the Supplier Operations Tracker

• Refer to the "Searching the Supplier Operations (SO) Tracker" topic and follow the steps to locate the "Notice of Levy" work item.

• Refer to the "Assigning SO Work Items" topic and follow the steps to assign the "Notice of Levy" work item.  

• Refer to the "Labeling the Supplier Operations Tracker" topic and follow the steps to label the "Notice of Levy" work item.
  

Updating the Supplier Record with a Hold Payment

Place all "CHK" and "EFT" locations for the supplier on hold and update the payment handling to "LI."

1. Click the Identifying Information tab.

1. All supporting documentation must be attached to the supplier's record on the Identifying Information tab.
   • Acceptable form formats include JPEG, PDF and TIF.

2. Click herehere for instructions on attaching supporting documentation to the supplier record.

   1. Click the Attachments link.
      • The Supplier Attachment page displays.

      

    

   1. Click Add Attachment.
   2. Copy the Document URL from the Supplier Operations Tracker.
   3. Click Browse.
   4. Paste the Document URL into the File name.
   5. Click Open.
   6. Click Upload.
      • The Supplier Attachment page displays.

   7. Update Description with <descriptive name of the document> (e.g., "VIF W9 EFT").

      • Repeat steps 2-8 for each document to be uploaded.

   8. Click OK.

      • The Identifying Information tab displays.
3. Click the Location tab.

4. Click the Add a New Row icon in the Details section to add an effective dated row.
5. Click the Payables link.
6. Click on Additional Payables Options to expand the section.
7. In the Payment Control section, click the Hold Payment checkbox.  
8. In the Additional Payment Information section, select "Specify at this level" from the Handling Options dropdown.
9. Update the Handling field to "LI."
10. Click OK.

2. • The Location tab displays.

11. Click on Comments to expand the section.
12. In the Comment section add "IRS NOTICE OF LEVY. PLEASE CONTACT STATE ACCOUNTING-PAYMENT ISSUANCE AT OBM.PAYMENTISSUANCE@OBM.OHIO.GOV" with the date and the associate's initials.
    • Repeat the above steps on all EFT locations, if applicable.
13. Create an additional location called "OBM ONLY" (this location does not have a hold or LI handling code).
    1. Click the Add a New Row icon in the Location section.
    2. Enter Location "OBM ONLY."
    3. Enter Description "OBM ONLY."
14. Click Save.
• The Preview Supplier Audit page displays an audit of the changes made to the suppliers account.

15. Click OK.
16. Click the Summary tab.

Processing the Release of Levy

When the "Levy Release Notice" is received by OBM State Accounting, it will be sent to supplier@ohio.gov to be  uploaded to the Supplier Operations Tracker.

• Refer to the search instructions in the Reviewing Supplier Information topic to locate the supplier record in OAKS FIN.

Updating the Supplier Operations Tracker

1. Refer to the "Searching the Supplier Operations (SO) Tracker" topic and follow the steps to locate the "Levy Release Notice" work item.
2. Refer to the "Assigning SO Work Items" topic and follow the steps to assign the "Levy Release Notice" work item.  
3. Refer to the "Labeling the Supplier Operations Tracker" topic and follow the steps to label the "Levy Release Notice" work item.

Updating the Supplier Record with the Release

Remove the hold and LI from all "CHK" and "EFT" locations on the supplier record.

1. Click the Identifying Information tab.

1. All supporting documentation must be attached to the supplier's record on the Identifying Information tab.
   • Acceptable form formats include JPEG, PDF and TIF.

2. Click herehere for instructions on attaching supporting documentation to the supplier record.

   1. Click the Attachments link.
      • The Supplier Attachment page displays.

      

    

   1. Click Add Attachment.
   2. Copy the Document URL from the Supplier Operations Tracker.
   3. Click Browse.
   4. Paste the Document URL into the File name.
   5. Click Open.
   6. Click Upload.
      • The Supplier Attachment page displays.

   7. Update Description with <descriptive name of the document> (e.g., "VIF W9 EFT").

      • Repeat steps 2-8 for each document to be uploaded.

   8. Click OK.

      • The Identifying Information tab displays.
3. Click the Location tab.

4. Click the Add a New Row icon in the Details section to add an effective dated row.
5. Click the Payables link.
6. Click on Additional Payables Options to expand the section.
7. In the Payment Control section, uncheck the Hold Payment box.
8. In the Additional Payment Information section, select "Default from Higher Level" from the Handling Options dropdown.
9. Remove "LI" from the Handling field.
10. Click OK to return to the Location tab.
11. Click on Comments to expand the section under the "CHK" location.
12. Create a new comment with the date to reflect release of levy.
13. Navigate to the "OBM Only" location
14. Click the Add a New Row icon in the Details section to add an effective dated row.
15. Select Inactive for the "OBM ONLY" location.
16. Click Save.

17. Click the Summary tab.

Next steps - Updating the Supplier Operations Tracker