us-tx/regs
34 Tex. Admin. Code § 5.45 — IRS Levy Procedures
(a)
After November 30, 1975, the comptroller's office will no longer receive notice of levy from the IRS. Notices will be mailed directly to the employing/contracting agency pursuant to a written agreement between the comptroller's office and the IRS whereby receipt of levies by mail will be accepted by all state agencies and departments. The following procedures should be adhered to by each agency:
(1) IRS serves notice of levy by mail or in person on the employing or contracting agency against current funds due taxpayers, except on contractual agreements, in which case the levy is against all future sums due on that contract. Levies against wages are to apply only against first regular pay warrant issued after date levy is received.
(2) Upon receipt of notice of levy from the IRS, the employing or contracting state agency should notify the employee or vendor of the levy and the procedures that shall be followed.
(3) If the employee has terminated employment or a vendor is no longer doing business with the agency, the agency will take the following action:
(A) notice of levy for the vendor is returned to IRS with an explanation;
(B) notice of levy for a terminated employee with no accrued retirement with Employees' or Teachers' Retirement System is returned to IRS with an explanation;
(C) notice of levy for a terminated employee with accrued retirement with Employees' or Teachers' Retirement System is returned to IRS with indication of such accrued retirement.
(b)
Any voucher submitted to the comptroller for warrant(s) to be issued to an employee or vendor after notice of levy has been served on the agency should be prepared and handled by the agency as follows:
(1) Payroll or purchase vouchers submitted to the comptroller should include a notation that warrant(s) to be issued are subject to IRS levy.
(2) Warrant(s) will be made payable to the employee or vendor and returned to the agency that submitted the voucher for payment. Note: Delivery of warrant(s) to IRS shall be the responsibility of the agency. Warrants should be mailed to IRS using the preaddressed envelopes enclosed with the original notice of levy.
(3) If the amount due the employee or vendor is more than the amount of the levy, one warrant will be made payable to the employee or vendor for the exact amount of the levy, a second warrant will be made payable to the employee or vendor for the amount in excess of the levy, and these warrants returned to the submitting agency for disposition to IRS and the employee or vendor.
(4) If the amount due the employee or vendor is less than the amount of the levy, one warrant will be made payable to the employee or vendor and returned to the agency for transmittal to IRS.
(5) If the amount due the employee or vendor is equal to the amount of the levy, the warrant will be handled as in paragraph (4) of this subsection.
(c)
At such time the warrant has been mailed, and the warrant number noted on the agency copy of levy, and filed, the requirements of the levy will have been fulfilled unless the levy has been against a contractual amount, in which case to satisfy the levy requirements all payments made on the contractual amount shall be forwarded to IRS until the full amount of the levy is paid or the total contractual amount due the vendor has been paid, whichever occurs first.
Source Note: The provisions of this §5.45 adopted to be effective January 1, 1976.
Source: official text