The agency making the loan repayment is responsible for
transmitting the necessary information to the payroll agency and for
ensuring that the withholding is properly implemented. If the agency
processing the payroll is unable or unwilling to implement withholding,
the agency repaying the loan must use one of the alternative withholding
This answer was provided by the Internal Revenue Service (IRS). For further guidance/clarification on this issue, agency representatives may contact IRS (Federal, State and Local Governments) at (202) 283-9665.
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