Banks must consent before receiving levies by eFax

Plain-English summary

Chief Counsel addressed notices of levy sent to banks through eFax. A bank's listing in a general IRS levy-source database, even with a fax number, did not establish consent to eFax service. Because the banks at issue were not on the separate list of institutions that had agreed to receive eFax levies, the IRS had to serve the levies again before issuing final demands. The IRS could use personal delivery, regular mail, or traditional fax after confirming and documenting the bank's agreement to receive the levy by fax. Certified mail was not required for the notice of levy, although it was required for a mailed final demand.

Ruling snapshot

• Question: Were levies sent by eFax valid when the banks had not agreed to accept service through that method?
• Outcome: advice given
• Key authorities: Treas. Reg. § 301.6331-1(c); IRM 5.11.2.2.4, 5.11.2.2.5, and 5.11.2.2.9

Full text (IRS public release)

ID: CCA_2017021714073320
UILC: 6323.00-00

Number: 201710025
Release Date: 3/10/2017
From:
Sent: Friday, February 17, 2017 2:07:33 PM
To:
Cc:
Bcc:
Subject: RE: Levy service method

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This is in response to your request for assistance concerning service of notices of levy
(“levies”) by eFax, and whether certain levies served by eFax on and
must be re-served. You have also asked about the protocol for confirming
whether the banks will consent to service by eFax. For the reasons set forth below, it is
our view that the Service must re-serve the levies using non-eFax methods, that is,
service by mail, in person or by (traditional) fax. Regular mail may be used; certified
mail is not required. The only “protocol” required to confirm that banks consent to
service by eFax is to consult the list on the IRS SBSE website, set forth in a link below.

Under the Code, regs, and IRM, the Service can serve a levy in person, by mail, by fax
under certain circumstances, and by eFax under certain circumstances. Before the
Service serves levies by eFax on a bank, the bank must have agreed to accept levies
by that method. The National Levy Source Database mentioned by the Revenue Officer
(https://acsweb.enterprise.irs.gov/nlsweb/pages/mainmenu.xhtml), referred to in IRM
5.11.2.2.5, Addresses for Mailing Notices of Levy, is a general database of levy source
information. The database screenshots provided show bank information, including fax
numbers. The fact that a bank’s name and fax number are listed on that database does
not mean that the bank has consented to service by eFax.

There is, however, a list of banks that have agreed to accept levies by eFax on the
SBSE website. Here is the link to that list:
http://mysbse.web.irs.gov/collection/toolsprocesses/Enforcement/Levy/elevy/resources/
34961.aspx.

I spoke with the National Office levy analyst working on eFax . He said
that the Service is working on adding more banks as participants (with written
confirmation of participation) in accepting service of levies by eFax. He also confirmed
that the sources listed on the eFax website are the only sources accepting eFax levies
at this time. and are not on the eFax list. The fact that
or may have accepted levies by eFax in the past is not adequate
2

confirmation of their agreement to accept all levies by eFax. Their refusal to accept
service by eFax is within their rights, despite the fact that it is administratively
burdensome to the Service. Accordingly, the levies must be re-served using methods
other than eFax before the Service may issue a final demand.

Specifically, the Revenue Officer should serve the levies on those banks in person, by
mail, or by fax. IRM 5.11.2.2.4(2), Serving Notices of Levy by Mail or Fax,
provides: “When a levy must be served quickly, a fax can be used. First, confirm the
person has a fax machine and will accept the levy this way. Document that the levy
source agreed to accept the levy by fax.” This confirmation can be done by telephone,
with written documentation of the call placed in the file.

Finally, we note that was incorrect in stating that a levy by mail must be
sent by certified mail. See Treas. Reg. § 301.6331-1(c). Under IRM 5.11.2.2.9(5),
Refusing to Comply with a Levy, if Form 668-C Final Demand for Payment is mailed, it
must be sent by certified mail. There is no such requirement for the notice of
levy. Accordingly, service by regular mail may be used as an alternative to personal
service or service by fax (if agreed to by the bank).

If you would like to discuss this, please contact me.

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