IBA Compliance Connection

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We received two IRS levies for business customers and would like to know if Illinois Executive Order 2020-55 (EO-55) would prevent us from freezing their accounts. An individual from the IRS told us that they believe EO-55 only affects state agencies, not federal.

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We do not believe EO-55 would prevent you from complying with the IRS levies.

Illinois Executive Order 2020-25, as amended by EO-55, suspends the provisions of the Illinois Code of Civil Procedure that permit the service of a garnishment summons, wage deduction summons, or a citation to discover assets on a consumer debtor or garnishee. This protection does not extend to commercial debtors or garnishees.

Additionally, the prohibitions in these executive orders pertain only to specified sections of the Illinois Code of Civil Procedure and are not applicable to levies served under the authority of the Internal Revenue Code.

For resources related to our guidance, please see:

  • Illinois Executive Order 2020-25 (April 14, 2020) (“During the duration of the Gubernatorial Disaster Proclamations, Sections 5/12-705, 5/12-805, and 5/2-1402 of the Illinois Code of Civil Procedure, 735 ILCS 5/12-705, 735 ILCS 5/12-805, and 735 ILCS 5/2-1402, that permit the service of a garnishment summons, wage deduction summons, or a citation to discover assets on a consumer debtor or consumer garnishee, are suspended.”)
  • Illinois Executive Order 2020-55 (September 18, 2020) (“Section 1. During the duration of the Gubernatorial Disaster Proclamations, the provisions of Sections 5/12-705, 5/12-805, and 5/2-1402 of the Illinois Code of Civil Procedure, 735 ILCS 5/12-705, 735 ILCS 5/12-805, and 735 ILCS 5/2-1402, that permit the service of a garnishment summons, wage deduction summons, or a citation to discover assets on a consumer debtor or consumer garnishee, are suspended. Section 2. Notwithstanding the foregoing, nothing in this Executive Order shall be construed to apply to domestic support obligations, including child support and spousal maintenance obligations, or to any proceeding pursuant to the Illinois Wage Payment and Collection Act, 820 ILCS 115, Minimum Wage Law, 820 ILCS 105, or the Prevailing Wage Act, 820 ILCS 130.”)
  • Internal Revenue Code, 26 USC 6331(a) (“If any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it shall be lawful for the Secretary to collect such tax (and such further sum as shall be sufficient to cover the expenses of the levy) by levy upon all property and rights to property (except such property as is exempt under section 6334) belonging to such person or on which there is a lien provided in this chapter for the payment of such tax.”)