If individuals don’t pay taxes (or make arrangements to settle the debt), the IRS may levy wages through their employers. But one man who owed back taxes filed a lawsuit against his employer after the corporation complied with an IRS levy on his wages. The man argued that the IRS didn’t have authority to seize his pay and that it was illegal for his employer to levy it. His complaint was dismissed in a U.S. District Court. The court stated that under tax law, an employer has immunity from liability in a lawsuit brought by a delinquent taxpayer when complying with an IRS levy. (Thomas v. Pilgrim Pride Corp., DC GA, 2/27/23)
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