QB Issue Resolution:

I would create a parent and sub account structure (expense accounts)

EDD levy
>> taxes owed
>> penalty
>> interest


split your payment across the three sub accounts per the levy notice, and at tax time get the tax accountant to look at that set of accounts.  The tax deductiblity of each sub account may be different for state and federal taxes.

Resolution for Issue 'Notice of Levy' available: Yes (Solved).
Source: Intuit Community forum.

Notice of Levy: 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.

Support for account structure
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