The way a judgment creditor levies upon a judgment debtor's state and federal tax refund is to file an application for the levy in the court where the judgment was issued. The court then issues the levy and the local sheriff then serves the levy either upon the nearest Internal Revenue Service branch or state franchise board.The judgment debtor is informed of the levy on the tax return and he or she then has an opportunity to contest the levy. If there is no contest, or if the levy's contest is denied by the court, the tax refund is paid to the sheriff's office who made the levy who in turn send a check from its trust account to the judgment creditor.