Attorney payments may support continuous wage levy

Plain-English summary

Chief Counsel considered a levy on payments to an attorney that might qualify as federal payments. The IRS implements section 6331(h) only through electronic levies served on federal agencies under the Federal Payment Levy Program, not through other levy types. Counsel therefore advised that the levy fell under section 6331(a) or the continuous wage-levy rule in section 6331(e). The regulation's broad definition of wages could support treating the attorney's payments as subject to a continuous wage levy.

Ruling snapshot

• Question: Does section 6331(h) govern a nonelectronic levy on federal payments to an attorney?
• Outcome: No, the levy falls under section 6331(a) or potentially the continuous wage-levy rule in section 6331(e)
• Key authorities: IRC § 6331(a), (e), and (h)

Full text (IRS public release)

ID: CCA-12150342-15
UILC: 6331.00-00

Number: 201602006
Release Date: 1/8/2016
From: ----------------------
Sent: Tuesday, 12/15/15 3:42pm
To: ---------------
Cc: ---------------------
Bcc:
Subject: RE: Levy on Federal government entities?

My two cents. Even though the payments to the attorney may be considered federal payments, the IRS has only implemented section 6331(h) by serving electronic levies on other federal agencies in a program called the “Federal Payment Levy Program.” It does not rely on section 6331(h) to serve any other type of levies. So this is either an (a) or an (e) (wage) levy. I suppose the regulation’s definition of “wages” is broad enough to treat this as a continuous wage levy.