QB Issue Resolution:

receive the payment on the invoice in full

then in receive payments, on the next line select the levy liability account and enter the amount used as a negative number, the deposit will net to the actual payment, then deposit

Resolution for Issue 'How can I properly account for a tax levy payment against my company?' available: Yes (Solved).
Source: Intuit Community forum.

How can I properly account for a tax levy payment against my company?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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