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The IRS’s reach in collecting unpaid and assessed taxes is broad, pervasive, and aimed “to reach every interest in property that a taxpayer may have” United States v. National Bank of Commerce, 472 U.S. 713, 719–720 (1985) (emphasis supplied). In exercising its expansive collection powers, the IRS often serves levies on banks, financial institutions, and other corporate entities acting as trustees concerning the administration of various trusts. What is a Corporate Trustee supposed to do when served with an IRS levy with respect to its beneficiary? What impact, if any, do spendthrift, forfeiture, and other discretionary provisions within the trust instrument have on the IRS levy? This article explains and analyzes the applicable federal tax law in the context of IRS levies served on trustees of various types of trusts, along with providing some recommended best practices.