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171
CO - Contractual ObligationPayment Adjustment
Denial Code CO-171: Tax Levy Payment Reduction
What Does Code 171 Mean?
Payment is reduced due to a tax levy against the provider. The IRS or state tax authority has placed a levy on the provider's payments.
Group Code CO (Contractual Obligation): The provider has agreed to accept the payer's determination. The patient is generally not responsible for this amount.
Why Does This Happen?
Federal or state tax levy applied to provider reimbursement.
How to Resolve It
- 1Contact the IRS or state tax authority to resolve the levy
- 2No payer appeal available -- this is a government action
- 3Consult with a tax professional
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