Yes, we believe that unemployment benefits are subject to a tax levy and should be frozen as required by the tax levy. Unemployment benefits do not receive the same protections that federal benefit payments receive against state tax levies.

For resources related to our guidance, please see:

• Illinois Income Tax Act, 35 ILCS 5/1109 (“Any officer or employee of the Department designated in writing by the Director is authorized to serve process under this Section to levy upon accounts or other intangible assets of a taxpayer held by a financial organization . . . .”)

• 31 CFR 212.3 (“Garnishment order or order means a writ, order, notice, summons, judgment, levy or similar written instruction issued by a court, a State or State agency, a municipality or municipal corporation, or a State child support enforcement agency, including a lien arising by operation of law for overdue child support or an order to freeze the assets in an account, to effect a garnishment against a debtor.”)

• 31 CFR 212.3 (“Benefit payment means a Federal benefit payment referred to in § 212.2(b) paid by direct deposit to an account with the character ‘XX’ encoded in positions 54 and 55 of the Company Entry Description field and the number ‘2’ encoded in the Originator Status Code field of the Batch Header Record of the direct deposit entry.”)