Federal Payment Levy Program
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In July 2000, the IRS, in conjunction with the Department of the Treasury, Financial Management Services (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, the Department of the Treasury can collect the taxpayer’s 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 taxpayer as a contract/vendor doing business with the government (including Defense contracts)
- Federal employee travel advances or reimbursements
- Certain Social Security benefits paid to taxpayer
- Some federal salaries
- Medicare provider and supplier payments
The levy is continuous until the overdue taxes are paid in full, or other arrangements are made to satisfy the debt.
The IRS can issue a “block” on this FPLP, however, the “block” expires after 12 months (as we recently found out with a client). All IRS Help members should monitor and “block” the IRS has placed on their client’s account to make sure FPLP is not to be reinstated after 12 months.
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West Seneca, NY -
(716) 827-1980 -
sstrachan@irshelp.com
Michael Tamsett
- Title
- Enrolled Agent
- Services
- Income Tax Preparation for all types of businesses, and individuals IRS and State Audit Representation.
- Phone
- 212-941-0829
- mtamsett77@hotmail.com