TAX 9900 Lecture Notes - Lecture 14: Accrued Interest
Document Summary
On 5/2/17, the irs served a notice of levy upon bank demanding that. Bank turn over to the irs all property and rights to property of d that are in bank"s possession. 5/2/17, d had ,000 on deposit with bank (day of levy). On 5/4/17, a creditor of d automatically deposited ,000 in d"s account with bank. Banks required to hold for 20 days; surrender amount on 21st. On 21st day, bank has to satisfy levy = k + accrued interest on k. Irs gets what d was entitled to on date levy served (may 2) Notice: irs is not entitled to subsequent k deposit. Irs steps into delinquent tp"s shoes on date levy served and can get anything tp can get; irs becomes tp. Whatever tp gets on day of levy, irs can get. Irs gets what d was entitled to on 5/2/17. Date of levy served - 5/2/17 - 15,000 + interest.
