Federal Payment Levy Program
This information is intended as technical
information of use to consultants
and individuals doing research. For information on tax assistance,
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In July 2000, the IRS, in conjunction with the Department of the
Treasury, Financial Management Service (FMS), started the Federal
Payment Levy Program (FPLP) which is authorized by Internal Revenue
Code Section 6331 (h), as prescribed by the Taxpayer Relief Act
of 1997 Section 1024. Through this program, we can collect your
overdue taxes through a continuous levy on certain federal payments
disbursed by FMS. The following is a list of federal payments
that can be levied through the FPLP:
federal employee retirement annuities,
federal payments made to you as a vendor doing business with the
government,
federal employee travel advances or reimbursements,
certain Social Security benefits paid to you, and
some federal salaries.
In the future, the program will expand to include additional federal
employee salaries and other types of federal payments.
Federal payments to a delinquent taxpayer will
not be included in the program in certain circumstances. These
circumstances include, when you are in bankruptcy, have applied
for relief as an innocent or injured spouse, made alternative
arrangements to pay, or the IRS has determined you are in a hardship
situation.
As part of this program, a file of delinquent
accounts is transmitted to FMS to be matched against pending federal
payments you are due. When a match is found, we send you a Final
Notice - Notice of Intent to Levy and Notice of Your Right to
a Hearing, CP 90 or CP 297, if another Final Notice has not already
been issued. See IRS Appeals and Dispute Resolution for additional
information about your right to a hearing.
If we don't hear from you within 30 days from
the date of the Final Notice, we will transmit the levy electronically
to FMS. This applies to all federal payments that can be levied
except for certain Social Security benefits. See Topic 201, The
Collection Process, Publication 594, Understanding the Collection
Process, and Publication 1, Your Rights as a Taxpayer, for additional
information.
From that point on, FMS may reduce any federal
payments subject to the levy by 15 percent, or the exact amount
of tax owed if it is less than 15 percent of the payment. The
levy is continuous until your overdue taxes are paid in full,
or other arrangements are made to satisfy the debt. Each time
your federal payment is levied, FMS will send you a letter of
explanation, including information on which federal payment was
levied, and advise you to contact us for resolution.
Phone: (888) 712-7690
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Fax: (703) 425-1567
E-Mail: info@irstaxattorney.com
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