Understanding Tax Levies
If the IRS requests a levy of your pay, OPA will send a 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. The letter also provides instructions on contacting the IRS to resolve the levy.
Collection Process:
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, any amount that is deducted after the release is received 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.
Deduction Determination
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 based on your pay schedule, and the default filing status of single, and one withholding allowance as provided 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.
IRS Tax Levies 
Understanding Tax Levies
Learn more about tax levies from the IRS Web site
