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
contractor/vendor doing business
with the government (including
Defense contracts),
-
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 Tax Information for
Appeals 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. Defense contract payments,
however, will be reduced by 100 percent,
or the exact amount of tax owed. 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.
Contact
us toll-free at 1-800-829-7650 or
1-800-829-3903 to resolve the issue by
paying the tax bill, entering into an
installment agreement, or proposing an
Offer in Compromise. Please do not
contact the FMS, OPM, SSA, or any other
federal agency. See Topic 202, What to
Do if You Can't Pay Your Tax, and Topic
204, Offers In Compromise, for
additional information. |
