State Tax Levy

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What is a state tax levy?

State Tax Levy

The IRS is involved with many states in a program titled ‘State Income Tax Levy Program' (SITLP). Not all states are involved in this program. The purpose of this program is to allow the IRS to levy your state income tax refund to satisfy any delinquent federal tax bills. The program matches the state income tax refund database with the federal unpaid tax liability (delinquent taxes) database. The state will send you a notice of the levy when all the following happens:

  • It is determined that you are receiving a state tax refund,
    you live in a state involved in the SITLP Program
  • You have a delinquent federal tax account
  • Notice of Levy on Your State Tax Refund. You will receive this form from your state.
  • Notice of Your Right to Hearing after the levy.
After you receive the state's levy notice, you will receive information from the IRS. You will be issued an IRS notice offering you the opportunity to appeal the levy. However, if you previously received an IRS levy notice mentioning your right to a hearing, you will not get a second notice.If you have any questions or concerns about the state refund tax levy program, you can call either 1-800-829-7650 or 1-800-829-3903 for help.



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