Federal Payment Levy Program | State / IRS Wage Levy - See more at: http://www.dwktaxgroup.com/irs-wage-levy/federal-payment-levy-program-state-irs-wage-levy/#sthash.BtiR30tF.dpuf

Federal Payment Levy Program

Correctly settle the back tax problem at the “Core” the first time around with an urgency and fervor required. IRS or State tax relief is achievable however, the Taxpayer’s current financial circumstances needs to be heard…

What is the Federal Payment Levy Program?

In the year of 2000, three agencies, the Internal Revenue Service (IRS), the Department of Treasury and the Financial Management Services (FMS) created an automated levy system to collect on delinquent federal tax accounts, the Federal Payment Levy Program (FPLP).The Financial Management Services (FMS) administers the Treasury Offset Program (TOP) to collect “non tax debt” for federal agencies. The Federal Payment Levy Program was created to compliment FMS TOP as an efficient and systemic approach to collect on back taxes owed.

A file of delinquent taxpayers is generated by the IRS and forwarded to FMS on a “weekly” basis. FMS then cross references and identifies the taxpayer against federal payment and non -payment files.

Can the IRS / State Levy or garnish a lump sum payment?

As of August 28, 2012 the IRS/FMS Inter-agency Agreement states the following forms of federal payments can and will be levied at a 15% rate minus allowable expenses such as health insurance premiums, retirement contributions and court ordered child support obligations. The FPLP levies issued are to be continuous until released or removed. In some cases, the Federal Payment Levy Program regarding the Department of Defense federal vendor payments are levied at a 100% by Federal Payment Levy Program .

For the purpose of this article, the burning question to be answered is this; Can the IRS levy / garnish a disability lump sum payment? Social Security Administration (SSA) benefits paid under Title II the Social Security Act, otherwise known as the Federal Old Age, Survivors and Insurance Disability (OASDI) benefits is subject to the Federal Payment Levy Program 15% levy.

Exceptions:

1) Dependent Child benefits / Child Support

2) Lump sum death benefits

2) Payments that have partial withholding to repay an SSA benefit overpayment

3) Claims for Lump sum payments for taxpayers below the poverty guideline

As an additional note Supplemental Security Income (SSI) is not subject to Federal Payment Levy Program. More over, state governments cannot garnish or levy social security or like income.

If you are ready to identify, engage and rectify a seemingly unsolvable tax problem, ring DWK Tax Group at 1 – 8 6 6 – 2 2 6 – 6 1 0 2 for a 20 minute conversation to understand the nuances of your tax account or click on http://dwktaxgroup.com/ for additional information. You are not alone, and yes, there is someone looking out for your best interest.

- See more at: http://www.dwktaxgroup.com/irs-wage-levy/federal-payment-levy-program-state-irs-wage-levy/#sthash.BtiR30tF.dpuf