Agencies who are notified that a vendor to whom they owe money has an IRS levy on file should contact the vendor and/or the IRS to determine whether the IRS has released the levy. If the IRS has issued a release, a copy should be submitted to the Bureau of Auditing by mail to Cheri Greene, Room 448-M, Fletcher Building, Tallahassee, Florida, 32399-0350 or by facsimile to (850) 410-9337, SUNCOM 210-9337. In those cases where the vendor still has an IRS levy against them, it is important to schedule the payment to the IRS using the vendor's identification number.

The vendor's identification number should be the federal identification number or social security number and it will appear on the levy. To facilitate the payment, a separate vendor record should be established which will contain a different sequence number. It is to be set up using the Internal Revenue Service as the payee name and the vendor's name entered on the first line of the address field. The address of the IRS Revenue Agent and/or tax office should be entered in the remaining address fields.

Preparing the payment in this manner will allow the IRS to negotiate the payment and credit the taxpayer; and the Comptroller's vendor history records and 1099 files will be updated correctly. This will prevent Forms 1099 from being issued to the IRS when the payment is related to an intercept of a vendor payment to satisfy a tax levy.

If you have any questions, please contact Cheri Greene at 410-9313, SUNCOM 210-9313.

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