TAX LEVY - Do You Have Back Tax? You, the IRS & an IRS Levy.

Flat Fee Tax Service is the leader in having an IRS Levy stopped and we want to share some information with our readers.

An IRS tax levy can have a devastating impact on a taxpayer’s financial situation. It is possible that your entire paycheck will be seized by the IRS. More on that item later.

What Is an IRS Tax Levy?

An IRS tax levy is a legal seizure of your property to satisfy an IRS tax debt. A tax levy is different from a tax lien. A tax lien is a claim used as security for the tax debt, while a tax levy actually takes the property to satisfy the debt.

What Can the IRS seize?

1. Federal Payment Levy Program - In July 2000, the IRS, in conjunction with the Dept. of the Treasury, Financial Management Service (FMS), started the Federal Payment Levy Program (FPLP) which is authorized by IRC Section 6331 (h), as prescribed by the Taxpayer Relief Act of 1997 Section 1024. The IRS can collect your back tax through a continuous IRS tax levy on certain federal payments disbursed by FMS. (Federal payroll, Tax refunds, etc)

2. State Income Tax Levy Program (SITLP) - Under the SITLP, the IRS may levy (take) your state tax refund. SITLP matches federal tax delinquent accounts against a database of state tax refunds for states participating in SITLP.

3. Alaska Permanent Fund Dividend (AKPFD) Levy Program - For residents of the State of Alaska, the IRS may levy (take) your Permanent Fund Dividend. This program matches federal tax delinquent accounts against a database of Alaskan residents eligible to receive the dividend.

Social Security Benefits Eligible for the Federal Payment Levy Program
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, are subject to the 15-percent levy, to pay your delinquent tax debt.

Manual Levy

The IRS is not limited by IRC 6331(h) to taking 15% of your paycheck, your Social Security or your Social Security Disability (SSDI) benefits. The IRS can issue a manual levy that can continuously take ALL of your Social Security / Social Security Disability (SSDI) benefits as well as your paycheck / wage under Internal Revenue Code section 6331(a), which permits an IRS Levy on all your wage, salary or other income. The IRS can chose the manual approach if it deems fit and attempt to collect more than the automated 15%.

Now you are informed that the IRS can seize your paycheck, your commission check, your bank account, your brokerage accounts, your Social Security, Social Security Disablility, cars, paintings and any other asset the IRS can find and convert to cash.

There are only a few requirements that must be met before the IRS Executes a Tax Levy / IRS Levy:
•The IRS must have assessed the tax debt and sent a IRS Levy Notice (Bank Levy, IRS Levy) and Demand for Payment
•The taxpayer must have neglected or refused to pay the tax debt and,
•The IRS must have assessed the tax debt and sent a IRS Levy Notice (Bank Levy IRS Levy) and Demand for Payment.

The IRS can serve the Final Notice to Levy in person, leave it at the taxpayer’s home or usual place of business, or send the Notice of IRS Levy to the last known address by certified or registered mail. It is important to note that the IRS is only required to send the Final IRS Levy Notice to the last address known to it.

The taxpayer does not need to actually receive the Notice for IRS Bank Levy or IRS Wage Garnishment for it to be effective.

As you can see, it doesn't take much for the IRS to Execute a Tax Levy on you. With advances in technology, it is much easier for the IRS, through their Automated Collection System (ACS). In other words, it's harder to hide.

If you have been sent certified mail from the IRS, have received a Notice of Intent to Levy or a Notice to Levy, you should consult with a Tax Professional with a lot of experience handling a Tax Levy.

You can call our "stop the Tax Levy" Hotline at:

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