Understanding Tax Levies
If the IRS requests a levy of your pay, OPA will send a notification letter to the address on the Notice of Levy. The notice advises you to contact OPA within three (3) business days of the date of the notice. It also provides instructions on contacting the IRS to resolve the levy.
Download the OPA IRS Notification Letter Sample in PDF.
- Release of Levy
After you speak to the IRS, you may be issued a Release of Levy. You should ask the IRS to fax or mail the release directly to OPA as soon as possible. The IRS may fax the release to OPA at (212) 669-3464. Upon receipt of a Release of Levy, OPA will release or not implement the existing levy. If a deduction was already in place, OPA will remove the deduction from the payroll system to prevent future withholdings related to the Levy that was released. Under certain circumstances, a deduction will be refunded to you as an addition to pay on a subsequent pay statement. This refund is not taxable.
- Payroll Deduction Agreement
If you make a voluntary agreement with the IRS and complete a Payroll Deduction Agreement (IRS Form 2159), present that document to OPA. The agreed upon deductions will be entered into the payroll system and will remain in effect until the agreement conditions are satisfied or amended.
If you do not obtain a Release of Levy or a Payroll Deduction Agreement you must complete Parts 3 & 4 of the Levy. Return the completed documents to:
NYC Office of Payroll Administration
Payroll Customer Service Division
Ordered Deductions Unit
One Centre Street, Room 200N
New York, NY 10007
If OPA does not receive a Release of Levy, a Payroll Deduction Agreement or the completed Parts 3 & 4 of the IRS Notice of Levy within three business days of OPA’s notification to you, OPA is required to begin withholdings from your wages in accordance with Internal Revenue Code section 6331 until the levy is satisfied. The amount of the deduction each pay day will be determined by an IRS table, IRS Publication 1494, based on your pay schedule, and the default filing status of married filing separately with one withholding allowance as directed by the IRS.
The deductions will remain in effect until the levy or deduction agreement is satisfied or OPA receives a Release of Levy from the IRS.
You must contact the IRS directly at 1-800-829-7650 to obtain assistance with the following issues regarding an IRS Tax Levy Withholding:
- To obtain a Release of Levy that will terminate the deduction from your pay.
- To obtain a Payroll Deduction Agreement or Release of Levy due to financial hardship.
- To check the outstanding balance owed on your levy and request that a Release of Levy be sent to OPA to cease payroll deductions.
- To obtain a Balance Letter that will update the amount of the outstanding balance owed on your levy.
- To request a change in the withholding amount on an IRS initiated Payroll Deduction Agreement.
The IRS must fax documents directly to OPA at (212) 669-3464. OPA will only accept documents received from the IRS.
Learn more about tax levies from the IRS Web site
If you have additional questions related to your IRS Tax Levy Withholding or a Voluntary Payroll Deduction Agreement that you initiated with the IRS, contact the OPA Ordered Deductions Unit via email at email@example.com.