Ezel / IRS Rulings / 201021025

Counsel says a continuous levy could reach workers' compensation payments

Number
201021025
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Levy and Distraint
Topics
Procedure, penalties, and administration
Code sections
§ 6331
Ruling dated
April 27, 2010
Publicly released
May 28, 2010
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

This Chief Counsel Advice addresses whether a continuous levy could attach to workers' compensation payments. It states that IRC § 6331(h) authorizes a continuous levy on specified payments, including workers' compensation, and that the levy could reach up to 15 percent of both a one-time payment and a series of payments. The advice also notes that, as a policy matter, the Service had decided not to pursue workers' compensation payments at that time.

Ruling snapshot

  • Question: Could a continuous levy attach to workers' compensation payments?
  • Outcome: Advice given
  • Key authorities: IRC § 6331(h); I.R.M. § 5.11.7.2.1(5)

Full text (IRS public release)

ID: CCA_2010042711251747 Number: 201021025
Release Date: 5/28/2010
Office:
UILC: 6331.00-00

From: -----------------------
Sent: Tuesday, April 27, 2010 11:26:25 AM
To: ---------------------
Cc: -------------------
Subject: RE: Informal GL Advisory Request

Hi ---------

I.R.C. § 6331(h) provides that that the Service may issue a continuous levy upon specified payments. The levy “shall be continuous from the date such levy is first made until such levy is released.” Id. The levy attaches to up to 15 percent of any specified payment due to the taxpayer. Id. For purposes of section 6331(h), specified payments include workmen’s compensation. Id. In this case, a continuous levy could attach to up to 15 percent of both the one-time payment and the series of workmen’s compensation payments due to the taxpayer.

Although the Code authorizes the Service to issue continuous levies on workmen’s compensation payments, the Service has decided, as a policy matter, not to pursue these payments at this time. See I.R.M. 5.11.7.2.1(5).

Please let me know if you have any questions.

Thank you.

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