403.4 Vendor Tax Levies

On occasion, Portland State University receives a Form 668-W(c), Notice of Levy on Wages, Salary, and Other Income, from the Internal Revenue Service (IRS). This form identifies a vendor/taxpayer that owes money to the IRS. PSU is required to turn over any of this vendor's/taxpayer's wages, salary, or other income earned but not paid, or earned in the future, until the levy is released.

This policy outlines responsibilities for PSU personnel to comply with IRS requirements surrounding vendor levies. (For questions regarding levies on wages, contact PSU’s payroll office.) PSU seeks to ensure that the responsibilities related to compliance with IRS vendor levies are documented, communicated, clearly understood, and consistently applied.

PORTLAND STATE UNIVERSITY RESPONSIBILITIES: Portland State University will do the following:

• Respond thoroughly and in a timely manner to requests from the IRS to ascertain if any recent payments have been made to the vendor/taxpayer.
• In the event that PSU is making payments to the vendor/taxpayer, complete and return to the IRS the IRS paperwork, reducing the payment to the vendor and remitting payment to the IRS as specified.