Thursday, March 31, 2011

IRS Levy -- Federal Payment Levy Program (FPLP) -- Your Social Security Check and the IRS


Social Security / Social Security Disability (SSDI)

Levies


Federal Payment Levy Program

(FPLP)


YOU CANNOT AFFORD TO LOSE 15% 

OF YOUR SOCIAL SECURITY CHECK







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, the IRS 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 Federal Payment Levy Program (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 [Social Security / Social Security Disability (SSDI)] ,
  • some federal salaries, and
  • Medicare provider and supplier payments.
In the future, the Federal Payment Levy Program (FPLP) 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 Federal Payment Levy Program (FPLP) 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. Hardship status can be Currently not Collectible and/or filing an Offer in Compromise.

YOU MAY BE CURRENT not COLLECTIBLE 


YOU MAY BE ELIGIBLE FOR AN OFFER in COMPROMISE


Being on Social Security Means You Have Limited Income

Computer Match: As part of the Federal Payment Levy Program (FPLP), a file of delinquent accounts is transmitted to FMS to be matched against pending federal payments you are due. When a match is found, the IRS will 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.



If you do not contact the IRS within 30 days from the date of the Final Notice, the IRS will transmit the levy electronically to FMS. This applies to all federal payments that can be levied except for certain Social Security benefits. Your Social Security benefit or Social Security Disability check (SSDI) will be levied.

IF YOU ARE ON SOCIAL SECURITY, 

SOCIAL SECURITY DISABILITY (SSDI), or

VETERAN'S PENSION

YOU ARE VERY EASY TO LEVY

A levy may be transmitted to FMS without issuing a Final Notice if you previously requested a Collection Due Process (CDP) hearing on employment taxes. The Small Business and Work Opportunity Tax Act of 2007 amended I.R.C. Section 6330(f) and permits such a tax levy. If you requested a CDP hearing on previous employment taxes NO MORE THAN 2 years prior to the employment taxes being levied, the IRS will send you a Notice of Levy and Notice of Your Right to a Hearing (CP 297A).

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.  Some contract/vendor 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.

Through the Federal Payment Levy Program (FPLP), Social Security benefit payments outlined in Title II of the Social Security Act, Federal Old-Age, Survivors, and Disability Insurance Benefits (SSDI), are subject to the 15-percent IRS wage levy, to pay your delinquent IRS tax debt.

However, Social Security benefit payments, such as lump sum death benefits and benefits paid to children will not be included in the FPLP. Additionally, Supplemental Security Income (SSI) payments, under Title XVI, and payments with partial withholding to repay a debt owed to Social Security will not be levied through the Federal Payment Levy Program ( FPLP).

IF YOU HAVE A LIMITED INCOME & LIMITED ASSETS YOU MAY BE 

CURRENTLY not COLLECTIBLE


YOU DO NOT HAVE TO SUFFER






If you are unable to pay anything because of financial hardship, the IRS may temporarily suspend collection action, such as issuing a levy, until your financial condition improves. This status is called being Currently not Collectible. Being in Currently not Collectible status is a complicated procedure that will suspend all collection activity for 18 to 24 months. The Statute of Limitations continues to run.

The IRS may, however, file a Notice of Federal Tax Lien while your account is suspended. The IRS is the worlds largest and most powerful collection agency. The IRS has not become "warm & fuzzy". The IRS uses the Tax Lien authority as an "insurance policy" just in case you sell some property. If you are a member of the Armed Forces, you may be able to defer payment.

If you are on Social Security or Social Security Disability (SSDI) and have no real property or equity in any real property, you should look at an IRS Settlement through the Offer in Compromise program

The IRS may accept an Offer in Compromise (OIC) based on three grounds. 
  • First, acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed. 
  • Second, acceptance is permitted if there is doubt that the amount owed is collectible. This means that doubt exists in any case where the taxpayer's assets and income are less than the full amount of the tax liability. 
  • Third, acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.
Flat Fee Tax Relief is the nationwide leader in having an IRS Levy stopped and released.




FLAT FEE TAX SERVICE WILL STOP AN IRS WAGE LEVY IN 

1 DAY / 24 HOURS

If your Social Security or Social Security Disability benefit (SSDI) is being levied by the IRS, the levy may be released but you may lose a portion of 1 more check because the IRS will send your release to the Social Security Administration. The processing time between the IRS and Social Security Administration may cause you to lose your money to one more levy.  


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Are you looking for IRS Tax Relief Help with an IRS Tax Levy or IRS Garnishment? If so, you have come to the right place. An IRS Garnishment / IRS Wage Levy can have a devastating impact on a taxpayer’s financial situation. The IRS commonly uses an IRS Wage Levy / IRS Garnishment as a way to collect back taxes. The IRS can seize funds from any institution, business or individual that has funds belonging to the taxpayer. 

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Federal Payment Levy Help - Line: 

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When the IRS Has You Feeling Like You Have No Place To Turn, 


When the IRS Has Used an IRS Wage Levy to Take Your Check, You Have: 

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1 comment:

  1. If you are on Social Security or Social Security Disability (SSDI) and owe the IRS a back tax debt, you can be sure that you will be levied through the Federal Payment Levy Program (FPLP). You do not have to suffer. You have Rights. Stop the Levy today.

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