Levy
What is the 668-A and to whom do we send it?
668-A – Notice of Levy
Sent to banks, credit unions, merchant accounts (defined later) and other types of financial institutions, a bank levy attaches to property held by a third party.
True or False
an NFTL can be filed when the taxpayer is in an open bankruptcy status.?
False
If total accrued balance is less than $100. Which type of WOEA do we have to give?
NO WOEA.
what is the TC that indicates that there's a lien on that module and the reversal TC?
TC 581- LIEN PRESENT
TC 582- LIEN REVERSED
Name the four automated levies?
State Income Tax Levy Program (SITLP)
Federal Payment Levy Program (FPLP)
Alaska Permanent Fund Dividend Levy Program (AKPFD)
Municipal Tax Levy Program (MTLP)
what is the 668-w and to whom do we send it?
• 668-W – Notice of Levy on Wages, Salary or Other Income
is sent to employer
True or False
An NFTL must be filed for any amount due.
False. at least $2,500
when do we have to give the WOEA?
A WOEA is required for ST22 balances due and ST02 / ST03 delinquent returns (including manually created TDIs) whenever the taxpayer is required to take some type of action to resolve the account.
Name 2 things a TP can do to have a levy release?
•An Installment Agreement
• A Short Term Payment Plan Within 180 Days (formerly called “Extension to Pay”)
• A processable OIC has been received; the account will be in Status 71 and a TC 480 will be placed on the module(s)
•CNC
What does the State Income Tax Levy Program (SITLP)?
This program is used to seize a taxpayer’s state income tax refund in order to apply it to their federal tax debt.
What is a levy and which tool we use to issue or release them?
A levy is a seizure by the IRS of the taxpayer’s property and rights to property.
Tool used: ACS Web
name 2 notices that are written warnings of NFTL
LT 11 - 2603C - CP 504 - CP 501 - CP 523 - LT39
The SRP is not subject to enforcement actions such as LEVY or Notice of Federal Tax Lien (NFTL). You must inform the taxpayer of this exception if a SRP is on the account.
What is an erroneous levy?
•levy is a levy issued on the correct taxpayer, but considered incorrectly or prematurely sent due to an administrative error by the IRS.
What is the form used to request an FPLP release?
668-D- Release of Levy/Release of Property from Levy.
what are the income sources not considered on a levy?
¬Unemployment benefits
¬Workers Compensation
¬Stocks and dividends
¬Disability
¬Public assistance
¬Insurance companies
LIENS Once Filed when can an NFTL be release?
The CSED has expired
the entire balance is paid in full.
Give me the WOEA if I owe $8,500 and I just set up an IA with you?
in spanish and english
Good
Taxpayers should apply for a certificate of discharge of a tax lien if they are giving up ownership of the property, such as selling the property, and are willing to pay the value of the lien interest to the Service.
Taxpayers should be encouraged to complete the Form 14135 when applying for a Certificate of Discharge.
Of the following, which account would be subject to a FPLP levy?
a)A taxpayer who receives a federal pension but whose account is currently in Status 53 with a TC 530 Closing Code 30
b)A taxpayer who has several TDAs in ACS Status 22 but is only receiving Social Security disability income
c)A taxpayer receiving monthly Social Security retirement benefits but whose balances have not had any required final notice with appeal rights
d)A taxpayer receiving military retirement who has unpaid balances in ACS and who has not responded to all required notices
Answer: d) A taxpayer receiving military retirement who has unpaid balances in ACS and who has not responded to all required notices
What TC and AC will post on each module to indicate the third-party notice requirement has been met?
A TC 971 611 will post to each module to indicate the third-party notice requirement has been met.
What is a tax lien Subordination
Allows a lender to take priority over the tax lien in order for a taxpayer to access equity in their property
Give me the WOEA if I owe $25,000, i owe the 2020 tax return and you gave me date to file it so I can then set up an IA.
in spanish and english
Good
A taxpayer calls because of a levy on his wages. His payer has not yet started to garnish his paycheck, but the taxpayer states the levy will create a hardship. He is not current in filing and therefore cannot yet enter into an Installment Agreement. What will you do?
the CR will secure financial information over the phone, and if it is determined that an economic hardship exists (especially when considering the amount that the taxpayer’s pay may be reduced to), a Release of Levy will be issued. It should be faxed if possible.
What Designated Payment Code (DPC) indicates a SITLP payment?
DPC 20