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Federal Payment Levy Program
In July 2000, the Internal Revenue Service (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, the IRS can collect your back 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 you
- 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 (please see Offer in Compromise, Installment Agreement, or Full Pay Service, or the IRS has determined you are in a hardship situation (please see Currently Not Collectible).
Related Links
- IRS Tax Levy
- State Income Tax Levy Program (SITLP)
- Alaska Permanent Fund Divident (AKPFD) Levy Program
- Social Security Benefits Eligible for the Federal Payment Levy Program
Source: IRS.gov
