TaxSOS.com Tax Problems Blog

September 6, 2017

Federal Payment Levy Program: The New IRS Automated Levies on Military Retirement Payments May Be Harming Veterans Experiencing Economic Hardship.

Federal Payment Levy Program: The New IRS Automated Levies on Military Retirement Payments May Be Harming Veterans Experiencing Economic Hardship.

The Taxpayer Advocate has reported on the above in a two part series.

The Taxpayer Advocate expressed concerned about a recent IRS change in its policy regarding adding military retirement payments as a payment stream to the Federal Payment Levy Program. Under this program, an automated system identifies taxpayers with unpaid tax liabilities who receive certain payments from the federal government. A continuous levy for up to 15% of federal payments due these taxpayers can be made for the unpaid federal liabilities.

This IRS policy change has not been widely publicized.

The Taxpayer Advocate states, in part:

“I am deeply concerned that the IRS has decided to target retired service members, not long after recent military engagements in Iraq and Afghanistan have decreased in intensity. Serving in the United States Armed Forces requires years of tremendous sacrifice, challenging and dangerous assignments, frequent moves across the country, long separations from family, and fairly meager pay. Whether viewed as the sole means of income or a reward from the U.S government for serving 20 years in the Armed Forces, a service member’s retirement pay should not be considered another automatic FPLP funding stream.”

The Taxpayer Advocate advises that the IRS’s data provided as justification for its actions are inaccurate and misleading.

The Taxpayer Advocate concludes in stating:

“…I therefore find it baffling that he IRS refuses to apply the LIF [Low Income Filter] to military retirees who may be experiencing economic hardship.

… I am disappointed the IRS has refused to adopt the recommendation to run all military retirees through the LIF [Low Income Filter] and believe its failure to do so will cause the agency to issue a significant number of levies it will be required by law to release because of the taxpayer’s economic hardship.

… military retirees are an easy target for the IRS because retirement benefits are an easily identifiable levy source. By cherry-picking retired service members’ pensions for automated levies without taking into consideration individual taxpayers’ facts and circumstances, the IRS violates these taxpayers’ right to fair and just tax system, right to be informed, and right to quality service. (See Taxpayer Bill of Rights (TBOR)).”

You can read the Taxpayer Advocate two part series HERE.

September 2, 2017

Sample IRS letter to taxpayer when collection case assigned to private debt collector

Filed under: IRS Levy and Tax News, IRS levy and wage garnishment — Administrator @ 3:15 pm

Sample letter to taxpayer when collection case assigned to a private debt collector at IRS
linK: IRS

August 30, 2017

IRS has changed its WEB design

Filed under: IRS levy and wage garnishment — Administrator @ 9:24 am

IRS released their NEW landing page for www.irs.gov

February 5, 2007

Collection Due Process Hearing

Filed under: IRS levy and wage garnishment — Administrator @ 8:25 pm

U.S. 11th Circuit Court of Appeals

Redeker-Barry v. US (01/30/07 – No. 06-13925)
Denial of a Collections Due Process Hearing in connection with a determination of income tax liability is affirmed as the U.S. Tax Court has exclusive jurisdiction over claims relating to income tax liability, and the district court properly determined that it lacked subject-matter jurisdiction over the petition.
[To view the full-text of cases you must sign in to FindLaw.com.] http://caselaw.lp.findlaw.com/data2/circs/11th/0613925p.pdf

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