Legal Question in Tax Law in District of Columbia

Levies and service-connected disability

26 USC 6334(a)(10) says that service-connected disability is not subject to levy. So is it true that once it is deposited in a bank account, its character changes? If a veteran owes the IRS, they cannot levy his check with the VA or dept of treasury, but they can levy his bank account?

I am getting ready to make the IRS an offer. What is my only recourse? That my VA check cannot be levied, and I can keep all my money in a coffee can?

Please advise. [email protected]


Asked on 4/11/02, 9:55 pm

1 Answer from Attorneys
Thomas DeCaro DeCaro & Howell PC

Re: Levies and service-connected disability

Generally speaking, once funds are deposited into

a bank account they may be levied by the IRS.

Since you have the opportunity to protest when

your funds are levied, you may be able to convince

them that the funds are all proceeds of a VA

disability and they may release the levy at that

time but there are no guarantees and you would be

inconvenienced.

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Answered on 4/12/02, 5:08 pm


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