Part 5. Collecting Process

Chapter 11. Notice of Levy

Section 7. Automated Levy Programs

5.11.7  Automated Levy Programs

5.11.7.1 State Income Tax Levy Program
5.11.7.2 Federal Payment Levy Program
5.11.7.3 Alaska Permanent Fund Dividend Levy Program
Exhibit 5.11.7-1 NFC and NBC Agencies
Exhibit 5.11.7-2 FPLP Exclusion Criteria
Exhibit 5.11.7-3 Document Locator Number (DLN) Format of Federal Payment Type
Exhibit 5.11.7-4 Federal Payment Agency Identifier Code List
Exhibit 5.11.7-5 CP 90 (or 297) Final Notice, Notice of Intent to Levy and Notice of Your Right To A Hearing
Exhibit 5.11.7-6 CP 91 (or 298) Final Notice Before Levy on Social Security Benefits
Exhibit 5.11.7-7 Department of the Treasury, Financial Management Service (FMS) Notice to Taxpayers
5.11.7.1 (01-01-2006)

5.11.7.1  (01-01-2006)
State Income Tax Levy Program

1. The State Income Tax Levy Program (SITLP) is one of three automated levy programs. SITLP matches a Master File database of delinquent taxpayers eligible to be levied, against a database of state tax refunds for each state participating in SITLP.

2. Information pertaining to the SITLP criteria, process and procedures can be found under IRM 5.19.9, Collection, Liability Collection, Automated Levy Programs.

5.11.7.2  (01-01-2006)
Federal Payment Levy Program

1. The Federal Payment Levy Program (FPLP) is an automated levy program the IRS has implemented with the Department of the Treasury, Financial Management Service (FMS).

2. FMS administers the Treasury Offset Program (TOP) to collect delinquent non-tax debts for Federal agencies. The FPLP was developed in order to interface with TOP as a systemic and efficient means for the IRS to collect delinquent taxes by levying Federal payments disbursed or administered through FMS.

5.11.7.2.1  (01-01-2006)
Levy Authority and Background

1. IRC § 6331(h),Continuing levy on certain payments, as prescribed by the Taxpayer Relief Act of 1997 (Public Law 105–34) Section 1024, authorizes the IRS to issue continuous levies on certain Federal payments.

2. The FPLP was developed as the means to administer this law, therefore, no paper levy documents (Form 668-A or Form 668-W) should be served to effectuate a levy under this statute.

3. The law allows up to fifteen percent (15%) of specified payments to be levied. Specified payments include any Federal payment other than a payment for which eligibility is based on the income and/or assets of a payee.

4. The American Jobs Creation Act of 2004 (Public Law 108-257), Section 887,Modification of Continuing Levy on Payments to Federal Vendors, amended IRC 6331(h), and allows a continuous levy of up to one hundred percent (100%) of any specified payment due to a vendor of goods or services sold or leased to the Federal government. Chief Counsel has interpreted that "goods" or "services" does not include the sale or lease of real estate or computer software, for purposes of levying 100% of the payment; those payments may still be levied continuously for 15%. The 100% levy increase was incorporated into the FPLP on April 15, 2005, for certain contractor/vendor payments. See IRM 5.11.7.2.1.1. Interagency Agreement.

5. The FPLP administers a levy, and not a statutory or administrative offset. There are legal distinctions between the two civil collection actions. Contact your local Area Counsel for more information.

6. Although payments described in paragraph (4) (unemployment benefits); (7) (workmen's compensation); and (11) (certain public assistance payments) of IRC § 6334(a), Property exempt from levy, Enumeration ,may be levied under IRC § 6331(h)(2)(B), Continuing levy on certain payments, Specific payments, the Service will not pursue those payments at this time.

7. IRC § 6103(k)(8), Confidentiality and disclosure of returns and return information, Disclosure of certain returns and return information for tax administration purposes and IRC § 6103(n),Certain other persons, authorizes disclosure of taxpayer data to FMS for the search, matching and levying processes.

5.11.7.2.1.1  (01-01-2006)
Interagency Agreement

1. The interagency agreement between the IRS and FMS provides for certain Federal payments disbursed or administered by FMS to be systemically levied. FMS is the levy source for all levies issued through the FPLP — not the Federal payment agencies. Currently, the following payments are included in the FPLP:
   

   TYPE OF FEDERAL PAYMENT AND TYPE OF TIN PAIDMATCHING IRS DEBT ELEMENTSTART DATELEVY PERCENTAGE

   Civil Service retirement annuities administered by the Office of Personnel Management (OPM - Civil Service Retirement System and Federal Employee Retirement System). Paid by SSN	IMF/BMF Primary SSN only	July 2000	15%
   Contractor/vendor (non-military/Defense) payments. Paid by EIN or SSN	BMF Primary EIN only	July 2000	15%
   Employee travel payments (advances and reimbursements). Paid by SSN.	IMF/BMF Primary SSN only	May 2001	15%
   Employee salaries administered by the USDA National Finance Center (NFC); Interior's National Business Center (NBC); See Exhibit 5.11.7-1.NFC and NBC Agencies; United States Postal Service (USPS). Paid by SSN.	IMF/BMF Primary SSN only	January 2002 (Suspended April 2003) (Resumed) April 2004	15%
   Social Security benefit payments under Title II of the Social Security Act, (aka) Federal Old Age, Survivors and Disability Insurance (OASDI) benefits, exceptdependent child benefits; claims for lump sum payments; Prouty recipient benefits for those over 72 years old in 1971. Paid by SSN. (Supplement Security Income (SSI) will not be levied.)	IMF/BMF Primary SSN only	February 2002 (15%)	15%
   Military/Defense Department (DoD) contractor/vendor payments paid through the Defense Finance and Accounting Service (DFAS); DFAS has as many as 20 payment systems/sites and each had been implemented at different times. Paid by EIN or SSN.	BMF Primary EIN only	*December 2002 (phased) **April 2005 (MOCAS) **July 2005 (remaining systems & sites)	*15% **100%
   Miscellaneous Payments, non-means tested, such as discretionary payments and expenditures, etc. Paid by EIN or SSN	BMF Primary EIN only	January 2005	15%

2. The Federal retirement income, Social Security benefit payments, and Federal employee travel will be levied for 15% of the amount that FMS will disburse for the Federal payment agency.

3. Federal employee salaries will be levied for 15% of the gross wages or salary remaining after current taxes, health insurance premiums, retirement contributions, and, if applicable, court ordered child support payments are deducted. There should be no other deductions taken into consideration for the 15% calculation. See Exhibit 5.11.7-1. NFC and NBC Agency Listing, for the listing of Federal agency employers whose payrolls are administered by NFC or NBC.

4. For Defense (military) contractor payments paid through the DFAS' Mechanization of Contract Administration Services (MOCAS), the levy will attach 100% of the payment (or balance due, whichever is less) starting April 15, 2005; and the remaining DFAS vendor payment systems, starting July 18, 2005. Prior to those dates, any Defense contractor/vendor payment levied through the FPLP was for 15%.

5. Non-military contractor/vendor payments paid by FMS for Federal civilian agencies, will continue to be levied for 15%, and the 100% levy change may be incorporated on those sources at later dates.

6. "Miscellaneous payments" are levied at 15% of the Federal payment even though the payments are matched against the BMF tax debts. These are payments made for various Federal program-related expenditures, including interagency transfers, non-means tested loans, grants, medical, emergency and other administrative obligations.

7. If a taxpayer is receiving two or more types of Federal payments that are available for levy through the FPLP, then each of those payments will be levied. The FPLP cannot selectively levy a certain payment separately for a particular taxpayer.

8. Only the primary taxpayer's taxpayer identification number (TIN) Federal payment will be matched and levied at this time, though future enhancements will allow the secondary TIN's ( of IMF joint income tax and BMF sole-proprietor entity liabilities) Federal payment to be matched and levied.

5.11.7.2.1.2  (01-01-2006)
Delegation Authority

1. The delegation authority to issue an IRC § 6331(h) levy, levy release, and return of levied property remains the same as outlined in Delegation Order 191.

2. Certain Taxpayer Advocate Service (TAS) associates are delegated to release systemically generated levies such as the FPLP, but only on modules not assigned to ACS Status 22 or collection field Status 26.

5.11.7.2.1.3  (01-01-2006)
Third Party Notification

1. The FPLP systemic process is not subject to Third Party notification provisions under IRC § 7602 (c),Examination of books and records, Notice of contact of third parties , because contact is made between electronic database(s).

2. Third Party contact provisions must be satisfied prior to any personal contact with FMS (or other Federal agencies and Third Parties) about taxpayers subject to FPLP.

5.11.7.2.2  (01-01-2006)
FPLP Module Selection Criteria

1. The following types of tax and collection status can be selected for levy through the FPLP:

   Taxpayer Identification Number	Valid SSN or EIN (primary only)
   Master File Tax Code (MFT)	01–06, 08–14, 15, 16, 29, 30, 31, 33, 34, 36, 37, 44, 50, 51, 52, 55, 60, 63, 64, 67, 77, 78
   Status of Case	• Master File Status 22, 23, 24, 26 • IDRS Transaction Code (TC) 530, with Closing Codes (CC) 03, 06, 09, 10, 12, 13, 39

5.11.7.2.2.1  (01-01-2006)
Exclusions

1. The selected balance due tax module(s) indicated in IRM 5.11.7.2.2., or its entities, that have certain condition and freeze codes, will be excluded from FPLP selection. See Exhibit 5.11.7-2. FPLP Exclusion Criteria, displaying the list and description of entity and module transaction and freeze codes that are excluded from FPLP.

2. Excluded from the FPLP are modules/entities that, generally, should not, statutorily or operationally, be in levy status, such as unable-to-pay, pending or approved installment agreements (IA) or Offers-in-Compromise (OIC), approved Taxpayer Assistance Orders, open Disaster indicators, Combat Zone, open bankruptcies or litigation, pending claims and adjustments, and imminent Collection Statute Expiration Date (CSED) accounts.

   Note:

   If a module is in the FPLP, and subsequently moves into one of these exclusions, then the module will systemically reverse out of the FPLP.

   Example:

   If a Status 26 module, which is in the FPLP, changes to status 72 with TC 520, the module will systemically reverse out of the FPLP.

   Example:

   If a Status 26 module, which is in the FPLP, is closed as a hardship with a TC 530 CC 32, the module will systemically reverse out of the FPLP.

   Example:

   If a Status 26 module, which is in the FPLP, receives a pending IA request, with TC 971 Action Code (AC) 043, the module will systemically reverse out of the FPLP.

3. Social Security benefit payments that have matched on IMF taxpayers will not be subject to the FPLP levy, if either of the following exists:

   • the taxpayer meets a certain income exclusion criterion (see LEM 5.19.9.3.2.3) and there is no Taxpayer Delinquent Investigation (TDI) for any subsequent year. See IRM 5.11.7.2.3.1.1, SSA No Levy Indicator.

   • the taxpayer enters into a repayment agreement with the Social Security Administration (SSA) on overpayment benefits.

     Note:

     This exclusion does not apply on BMF individual taxpayers, i.e. Form 706 return taxpayer accounts.

5.11.7.2.2.2  (01-01-2006)
Modules Systemically Blocked from FPLP

1. Certain modules that may be selected into the FPLP, as discussed above, are systemically blocked from the program with TC 971 AC 061 (with the DLN displaying a series of 9s) in order to be manually or systemically unblocked based on certain conditions. See See IRM 5.11.7.2.6.4, Removal (Reversal) of the FPLP Block with TC 972 AC 061.

2. Unless the following modules are already selected into the FPLP through another collection status, then,

   • all new Status 22 modules are systemically blocked and, are subsequently and systemically unblocked when they are added into certain ACS inventories. See IRM 5.19.9.3.2.1.(2), FPLP Selection Criteria.

   • prior to June 2004, all new Status 26 modules were systemically blocked and would only get unblocked manually by field collection. After June 2004, all new Status 26 modules were no longer systemically blocked and those that were, were unblocked.

   • state and local government entities with employment code G or T are systemically blocked and may get manually unblocked by collection personnel based on case direction.

5.11.7.2.3  (01-01-2006)
FPLP Systemic Processes and Indicators

1. The FPLP has four (4) sequential systemic processes - the case and module selection process; the match and notice process; the levy process; and the levy payment process - each with its own specific account transaction codes (TC) and/or indicators. Details for each process are outlined in the following subsections.

2. The following TC 97X action codes are associated with the FPLP and are computer/systemically generated only unless otherwise noted as being able to manually input.
   

   TC 971 AC 060	Module selected for FPLP.
   TC 972 AC 060	Module reversed out of FPLP. Reverses TC 971 AC 060.
   TC 971 AC 061(may be manually input)	Module blocked from FPLP. (DLN displays series of 8s or 9s for systemic generation. DLN displays random numerics for manual inputs.)
   TC 972 AC 061 (may be manually input)	Reversal of FPLP Block on module. Manual input of TC 972 AC 061 reverses systemic and/or manual TC 971 AC 061.
   TC 971 AC 062	Federal payment match or levythrough FPLP. DLN indicates type of federal payment and whether a match or levy, or both, exist. See IRM 5.11.7.2.3.4.
   TC 972 AC 062	Federal payment match or levy reversed or not made. Reverses TC 971 AC 062.
   TC 971 AC 069 (may be manually input)	Final Notice (Notice of Intent to Levy & Notice of Your Right to a Hearing)generated and mailed certified with return receipt requested. -CP 90/297: FPLP issued (A series of 9s indicated in DLN) -LT 11 : ACS issued -L1058: Field Collection issued -CP 77: Alaska Permanent Fund Dividend Levy Program (AKPFD) issued -CP 92: State Income Tax Levy Program (SITLP) issued
   TC 972 AC 069 (may be manually input)	Final Notice (Notice of Intent to Levy & Notice of Your Right to a Hearing) not mailed.
   TC 971 AC 169	Final Notice Before Levy on Social Security Benefits (CP 91/298) generated and mailed regular mail.
   TC 972 AC 169	Final Notice Before Levy on Social Security Benefits (CP 91/298) not mailed. Reverses TC 971 AC 169.
   TC 670 DPC 18	FPLP designated payment code.
   TC 672 DPC 18	FPLP payment reversed by FMS due to non-entitlement claim initiated by Federal payment agency source. Reverses TC 670 DPC 18.

5.11.7.2.3.1  (01-01-2006)
Case and Module Selection Process (TC 971 AC 060)

1. All delinquent modules that meet the selection criteria, as discussed in IRM 5.11.7.2.2, FPLP Module Selection Criteria, will be transmitted to FMS to be matched with Federal payments.

   Note:

   Although a taxpayer may never receive a Federal payment, their tax module may still meet the selection criteria and will be transmitted to FMS to search for a possible future match.

   Note:

   If the module is selected, it remains in its original MF status code and its collection status progression may continue.

2. When the module is selected, a TC 971 AC 060 will post. An unreversed TC 971 AC 060 generates the following account indicators:

   1. MF entity screens (IDRS cc IMFOL/BMFOL) will display the indicator FMS CD:1, and IDRS entity screens (cc ENMOD) will display FMS-CD>1, if at least one module is selected with an unreversed TC 971 AC 060. If there are no modules selected, then the indicator will display 0 or no digit.

   2. ICS will display a red literal " FPLP" indicator on the case summary screens. The red " FPLP " is generated from the IDRS entity screen indicator FMS CD>1.

   3. Each MF and IDRS tax module (cc TXMOD, IMFOLT/BMFOLT) and ICS module summary screen will display the following indicators:

      FMS CD (VALUE)DEFINITION

      1	Not selected into the FPLP, but at one time was included. (Do not confuse this module value with the entity value of FMS CD:1 described in the previous paragraph.)
      3	Currently selected into the FPLP and unreversed TC 971 AC 060 present on module.

   4. Other values indicate the module is blocked from FPLP:

      
      FMS CD (VALUE)DEFINITION

      4, 5, 7	MANUAL FPLP block (TC 971 AC 061) present on module
      8, 9, B	SYSTEMIC FPLP block (TC 971 AC 061) (DLN has a series of 8s or 9s) present on module
      C, D, F	Both MANUAL and SYSTEMIC FPLP block (2 or more unreversed TC 971 AC 061) present on module

5.11.7.2.3.1.1  (01-01-2006)
SSA No Levy Indicator

1. As discussed in IRM 5.11.7.2.2.1 (3), the Social Security benefit payments of IMF taxpayers will not be subject to the FPLP levy if the taxpayers meet an income exclusion criterion based on the following Master File indicator. See LEM 5.19.9.3.2.2for the income exclusion threshold dollar amount.

2. CC IMFOLE will display the following indicators:

   SSA NO LEVY: 00

   The latest income tax return filed under a taxpayer's own primary SSN, that is available on the Master File, has a Total Positive Income above a certain dollar amount; or the latest year income tax return filed is an SFR; or the latest year income tax return filed is in retention; or there is an open TDI after the latest year income tax return filed.

   SSA NO LEVY : 01

   The latest income tax return filed under a taxpayer's own primary SSN, that is available on the Master File, has a Total Positive Income below a certain dollar amount and there is no TDI for subsequent year(s). If the latest filed tax return that is used to determine SSA No Levy: 01 , subsequently moves to retention, then SSA No Levy: 01 will not change unless a later return is filed that would result in a change.

3. Total Positive Income (TPI) is defined as the sum of gross positive income that is taxable and is displayed on CC IMFOLR on a return filed by the taxpayer. SFR returns do not display a TPI. TPI is not based on CC IRPTR data.

4. If there is a SSA No Levy: 00, then a Social Security payment may be subject to the FPLP levy.

   Note:

   If a taxpayer's TPI meets the criteria while the Social Security payment is being actively levied, the income exclusion criterion will not be in effect and the levy may only be released through Master File input and/or the FPLP Coordinator. See IRM 5.11.7.2.6, Blocking or Releasing FPLP Levy.

5. If there is a SSA No Levy: 01, then, even though a Social Security payment matched, the payment will not be subject to the FPLP levy.

5.11.7.2.3.2  (01-01-2006)
Matching (TC 971 AC 062) and FPLP Notice (TC 971 AC 069 or AC 169) Process

1. Once a module is selected for the FPLP and is transmitted to FMS, if FMS identifies a Federal payment match, then a TC 971 AC 062 will post.

2. The DLN associated with TC 971 AC 062 will include information about:

   • Federal payment agency source

   • Type of Federal payment matched

   • If the module was matchedor levied

     Note:

     If the TC 971 AC 062 DLN indicates match - the TC will post on all FPLP modules.
     If the TC 971 AC 062 DLN indicates levy- the TC will only post on the module intended for the levy payment.

     See IRM 5.11.7.2.3.4, Levy Payment Process.

   
   See Exhibit 5.11.7-3, DLN Format of Federal Payment Type, for the descriptive format of the TC 971 AC 062 DLN. See Exhibit 5.11.7-4. Federal Payment Agency Identifier Code List, for the type of Federal payment and Federal payment agency source.

   Note:

   The Federal payment agency source for Federal salaries will display the salary paying agency (i.e. USDA's National Finance Center (NFC); Department of the Interior's National Business Center (NBC) ), rather than the actual Federal employer of the taxpayer. See IRM Exhibit 5.19.9-2 , NFC and NBC Agency Listing, for the list of the Federal agencies whose payroll is serviced by USDA NFC or DOI NBC.
   

3. Once a TC 971 AC 062 DLN match is posted, then Master File will systemically verify if a Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing (CDP notice), has been issued by identifying an unreversed TC 971 AC 069 on the module. If there is none, Master File will systemically generate a CDP Final notice, CP 90 (IMF) or 297 (BMF), prior to the levy and post a TC 971 AC 069 on the module. See Exhibit 5.11.7-5 for a copy of CP 90/297. See IRM 5.11.7.2.4for the description of the notice.

4. If the match (TC 971 AC 062 DLN) identifies a Social Security benefit payment, and the TC 971 AC 069 has been posted for a least ten cycles (weeks), then, prior to the levy, the Master File will systemically generate an additional notice to Social Security beneficiaries - Final Notice Before Levy on Social Security Benefits (CP 91 for IMF or 298 for BMF) - and post a TC 971 AC 169 on the module. See Exhibit 5.11.7-6 for a copy of CP 91/298. See IRM 5.11.7.2.4 for the description of the notice.

   Note:

   For SSA levies issued after July 2005, the IMF will systemically generate another TC 971 AC 169 and reissue a CP 91 if 26 cycles or more have passed since a prior TC 971 AC 169.

5.11.7.2.3.3  (01-01-2006)
Levy Process

1. Once the notice process(es) are complete, and if the taxpayer does not appeal or resolve the case within the appropriate time frame, then IRS will transmit a levy to FMS.

2. For Federal payments other than Social Security, a levy will be transmitted to FMS at least ten (10) weeks from when the Final Notice, Notice of Intent to Levy and Your Right to a Hearing was issued (indicated by the unreversed TC 971 AC 069 posting cycle).

   Note:

   The 10 week timeframe allows for internal processing time prior to issuing a levy, should a taxpayer exercise their CDP appeal rights.

3. For social security payments that were matched, the levy will be transmitted to FMS at least eight (8) weeks after the CP 91 or 298 was issued (indicated by the unreversed TC 971 AC 169 posting cycle) and as long as the CP 91/298 is no older than 26 cycles.

   Note:

   The 8 week timeframe also allows for internal processing time prior to issuing a levy, should a taxpayer exercise their appeal rights.

4. MF does not display an account indicator when a levy transmission has occurred. The date of the levy is based on a posting cycle. The FPLP levy for all non-SSA payments has been transmitted, if there is a combination of an unreversed TC 971 AC 060 with an unreversed 10 cycle old TC 971 AC 069. The FPLP levy on SSA payments has been transmitted, if there is a combination of an unreversed TC 971 AC 060 with an unreversed 8 cycle old TC 971 AC 169. There may be two separate levy files on one account transmitted to FMS.

   1. The date of a non-SSA FPLP levy is the later of the cycles of an unreversed TC 971 AC 060 with a 10 cycle old unreversed TC 971 AC069.

   2. The date of a SSA FPLP levy is the later of the cycles of an unreversed TC 971 AC 060 with the latest 8 cycle old unreversed TC 971 AC 169.

5.11.7.2.3.4  (01-01-2006)
Levy Payment Process (TC 670 DPC 18)

1. When a levy payment is processed, then a TC 971 AC 062, with its DLN indicating a levy, will post on the module(s) intended for the levy payment. (The TC 971 AC 062, with its DLN indicating a match, will post on all FPLP modules.) The TC 971 AC 062 may post before the actual payment is transmitted into the account.

   Note:

   Although the TC 971 AC 062 DLN that indicates a levymay post to a module, the Federal payment may still not be received due to programming interface constraints between the time the levy was transmitted by the FMS to the payment agency to hold the payment and when the payment had been processed for disbursement. This may be the case on Defense contractor/vendor payments.

2. FMS has certain processing dates for each type of Federal payment. The levy payment is processed during these timeframes and is transmitted to the IRS at the time of the taxpayer's payment date.

   FEDERAL PAYMENTPAYMENT DATEPROCESSING CUTOFF DATE

   OPM (Federal retirement income)	1st of each month	2 weeks before payment date
   SSA (OASDI) benefits	3rd of each month; 2nd, 3rd & 4th Wednesday of each month	6 business days before the payment date
   Federal employee salaries	Biweekly	7 - 14 days before payment date
   Defense and civilian agency contractor/vendor payments; Federal employee travel payments; "Miscellaneous" payments;	Daily	Cutoff dates vary; payments may be processed up to 30 days prior to payment date

3. FMS will transmit the payment to the IRS through the Electronic Federal Tax Payment System (EFTPS), and a TC 670 DPC 18 will post on the taxpayer's module. Most of the TC 670 DPC 18 payments will be 15% of the Federal payment levied (or balance due, whichever is less). The exception will be on Defense contractor payments, which, as of certain dates, will be levied for 100%. See IRM 5.11.7.2.1.1, Interagency Agreement.

   Note:

   The TC 670 DPC 18 is a systemic action and does not allow for manual input.

4. FMS will send the remaining disbursement to the taxpayer along with a notice indicating the Federal payment has been levied. See Exhibit 5.11.7-7., Department of the Treasury, Financial Management Service Notice to Taxpayers. The FMS notice outlines:

   1. The type of Federal debt and the agency due the Federal debt; the type, date and amount of the Federal payment disbursement before levy and the paying Federal agency; and then the amount levied. The notice also displays an Account Number, that consists of the TIN type (0 for SSN; 2 for EIN), TIN, MFT,and the tax period,,where levied payment posted. The FMS notice also displays a TIN Number , but it does not contain the hyphens between the digits and the TIN will need to be verified if it is an SSN or EIN with the TIN type indicator.

   2. The FMS notice informs taxpayers to contact the following ACS addresses and phone numbers to resolve their account. (If a taxpayer calls the ACS phone number and the taxpayer is assigned to a local field collection office, the taxpayer will be referred to that appropriate office.)
      
      (SBSE, Tax Exempt and Government Entities (TEGE), Large and Midsize Businesses (LMSB), or International taxpayers)
      Post Office Box 57 Stop 686
      Bensalem PA 19020
      1-800-829-3903 or 215-516-2004 (International)
      
      
      
      (W&I taxpayers)
      Post Office Box 21936 Stop 5050 Annex 5
      Kansas City MO 64121–9236
      1-800-829-7650
      Correspondence received at these addresses should be handled according to IRM 5.19.9.3,Liability Collection, Automated Levy Programs, FPLP, or forwarded to the appropriate office for resolution.

   3. FMS mails the notice to the taxpayer either to the address provided by the IRS (if the Federal payment disbursed electronically) or to the address provided by the Federal payment agency source (if the Federal payment is disbursed through a paper check).

5. FMS may systemically reverse a TC 670 DPC 18 payment with TC 672 DPC 18 when the Federal payment agency determines the taxpayer was not entitled to the payment.

5.11.7.2.4  (01-01-2006)
FPLP Generated Notice(s) and Appeal

1. Prior to electronically levying a Federal disbursement, the FPLP will systemically issue a Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing (CP 90 or CP 297) if one has not already been sent.

   1. The notice CP 90/297 will be generated by the MF and mailed certified with a return receipt (Postal Service (PS) Form 3811) through the Collection Due Process Certified Mail System (CDP-CMS). TC 971 AC 069 will systemically post on each module where the CP 90/297 was generated. A cross reference (XREF) TC 971 AC 069 will also post on joint income tax liabilities if both notices are systemically generated during the same cycle.

   2. The return receipt card (PS Form 3811) is addressed for return to the campus that generates the notice. Upon receipt, a TC 971 AC 066, 067, or 068 will be electronically scanned, as appropriate, and input through CDP-CMS.

   3. CP 90/297 will display the balance due amounts and the appropriate ACS contact phone number for taxpayers to resolve the case or exercise their appeal rights.

   4. The notice will inform taxpayers of their right to appeal. Taxpayers may exercise their appeal rights through the:
      Collection Appeals Program (CAP)
      Collection Due Process (CDP)
      Equivalent Hearing (Appeals request madeafter the 30 day CDP period)

   Note:

   If a Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing (CP 90/297, Letter 1058, ACS LT 11) was issued prior to the last 180 days, a new warning of enforcement action does not have to be issued for this is a computer matching levy program. See IRM 5.11.1.2.2.6.

2. If the match is a Social Security benefit payment, a CP 91 IMF or CP 298 BMF, Final Notice Before Levy on Social Security Benefits will also be issued at least 10 weeks after a CDP notice (unreversed TC 971 AC 069).

   1. CP 91/298 displays the balance due amounts and provides an additional 30 days after the CDP notice timeframe to resolve the tax liability.

   2. CP 91/298 specifically identifies the Social Security benefit payment that may be levied for 15% by indicating the taxpayer's Claimant's Account Number (CAN) and the Beneficiary's Own Account Number (BOAN). The BOAN is always the taxpayer's TIN. These numbers are systemically provided by FMS and SSA during the FPLP matching process to identify the taxpayer's Social Security benefit information.

   3. The FPLP currently identifies and levies the primary taxpayer's benefit payment only.

   4. CP 91/298 is generated by the Master File; mailed regular mail to the taxpayer's last known address; and a TC 971 AC 169 will systemically post on each affected module. These notices will also have the appropriate 1-800 ACS contact phone number listed.

   5. Starting July 2005, the CP 91 will be considered aged and will be reissued if it is more than 26 cycles old prior to levies transmitted after July 2005. There is no CP 298 aging criterion for the BMF modules.

   6. The notice will inform taxpayers of their right to appeal. Taxpayers may exercise their appeal rights through the following:
      Collection Appeals Program (CAP)
      Equivalent Hearing Request — if no prior CDP or Equivalent hearing on the FPLP periods.

   7. CP 91/298 is systemically generated for the FPLP only. It should not be issued manually and is not required prior to issuing duly authorized paper levies pursuant to IRC 6331(a), Levy and distraint, Authority of Secretary, on Social Security benefit payments.

3. Service personnel are to process any appeals requests according to procedures in IRM 5.1.9,General Collection Procedure, Collection Appeal Rights or IRM 5.19.8, Collection Appeal Rights.

4. During any time of the FPLP notice and levy process, taxpayers should be referred to the Taxpayer Advocate Service for assistance if the respective Operating Division or Functional Unit is unable to provide immediate relief through standard operating procedures, particularly taxpayers that have matched with a social security benefit payment. Service personnel should refer to IRM 13.1.7,Taxpayer Advocate Case Processing, for guidance before referring taxpayers or potential problems to the TAS for assistance. Although taxpayer problems may meet TAS criteria, it is not necessary to refer the cases to the TAS if the problems can be resolved immediately.

5. It may be necessary to block or release the case from the FPLP ( See IRM 5.11.7.2.6, Blocking or Releasing FPLP Levy) if a resolution is pending through the Appeals or TAS process and no other FPLP exclusionary criteria exist. See Exhibit 5.11.7-2. FPLP Exclusion Criteria.

5.11.7.2.5  (01-01-2006)
Recognizing and Handling a FPLP Case

1. Revenue officers must recognize modules that have been placed in the FPLP and determine if this process will be part of their strategy to resolve the case.

2. If revenue officers decide that modules should not be part of FPLP, then they will need to block or release the modules from the FPLP. See IRM 5.11.7.2.6.

5.11.7.2.5.1  (01-01-2006)
FPLP or Paper Levy (Form 668-A/668-W)

1. Whenever the FPLP indicator is present on a module, revenue officers may decide to levy the Federal payment source through the FPLP — attaching the applicable 15% or 100% of the disbursement continuously; or the levy may be converted to effectuate the general levy statute, IRC 6331(a),Levy and distraint, or IRC 6331(e),Continuing levy on salary and wages, using the Notice of Levy, Form 668-A or Form 668-W, respectively, in order to levy the Federal payment source directly and attach the maximum amount allowed under those statutes. Form 668-A or Form 668-W may not be used as a means to levy under the FPLP statute, IRC 6331(h).

2. Form 668-A or Form 668-W will have to be served or issued on the Federal agency directly, not FMS. Prior to levying the Federal agency with Form 668-A or Form 668-W on either the primary or secondary taxpayer, the revenue officer must release or block the module from FPLP . See IRM 5.11.7.2.6,Blocking or Releasing FPLP Levy .

   Caution:

   Electronic levies through the FPLP and paper levies issued under IRC 6331(a) or 6331(e) should not be issued or attach to the same Federal payment source. If a paper levy is issued to a Federal agency while the taxpayer is being levied through the FPLP for the same payment, the Federal agency will return the paper levy to the originator. Allow at least thirty (30) days after the module is removed from the FPLP (or thirty days after the TC 972 AC 060 posting date) to (re)issue a paper levy on the same Federal payment source in order to ensure that FMS' or the Federal agency source's records no longer have the FPLP in effect. If this does occur, where the same Federal payment source had been levied under the FPLP and paper levy statutes, then see IRM5.11.7.2.7.(3).

3. Form 668-A or Form 668-W may be used as a levy tool on a case, in addition to the FPLP, as long as the Form 668A/W is not served on a Federal payment source, i.e. bank account, private sector wages. If the levy source is a Federal payment source, and is served with a Form 668-A or Form 668-W, then there may be a chance the FPLP may also levy the same payment source - which is prohibited based on the previous paragraph.

4. Revenue officers cannot close a case module as a continuous FPLP levy using a Status 60 input, normally used for continuous levies. FPLP systemically excludes Status 60 modules because they are also classified as approved installment agreement modules. FPLP excludes approved installment agreement modules.

5. Continuous levies under IRC 6331(e) on the Federal payment agency may still be issued using Form 668-W, and placed in Status 60. See IRM 5.11.5, Notice of Levy, Levy on Wages, Salary and Other Income.

5.11.7.2.6  (01-01-2006)
Blocking or Releasing FPLP Levy

1. The criteria and delegation authority for release of levy will not change for the FPLP. See IRM 5.11.2, Serving Levies, Releasing Levies and Returning Property.

   Note:

   There will be instances where the FPLP may be released on certain cases based on reasons not defined in IRM 5.11.2. See IRM 5.11.7.2.6.1 , Emergency Release of FPLP Levy and FPLP Coordinator.

2. The FPLP levy can only be released electronically. Do not use the Form 668–D, Release of Levy/Release of Property from Levy, as the means to release the levy from FMS or the Federal payment agency source.

   Caution:

   FMS and other Federal agencies will not process the Form 668–D on a FPLP levy, and will return it to its originator.

3. FPLP levies can only be released by posting a transaction code (TC) that would exclude the taxpayer from the FPLP as discussed in IRM 5.11.7.2.2.1. See Exhibit 5.11.7-2. FPLP Exclusion Criteria. Posting a FPLP exclusion TC will generate a TC 972 AC 060, which reverses the existing TC 971 AC 060.

   Example:

   Taxpayer Henry is being levied through the FPLP. Revenue Officer Teresa determined that Taxpayer Henry's case will be resolved as a financial hardship and inputs a TC 530 CC 24. The TC 530 cc 24 will generate a TC 972 AC 060 indicating the module is released from the FPLP.

4. If a FPLP exclusion TC is not yet warranted on a taxpayer's case, then input the automated levy block, TC 971 AC 061, on each appropriate module. Posting the TC 971 AC 061, will either generate a TC 972 AC 060 which reverses the existing TC 971 AC 060, or block the module from the FPLP and not allow a TC 971 AC 060. Do not input both a FPLP exclusion TC and TC 971 AC 061 during the same cycle. TC 971 AC 061 may be input via ICS or Form 4844. See IRM 5.11.7.2.3.1,Case and Module Selection Process, for block indicators that should display on the module.

   Example:

   Revenue Officer John has a FPLP case module on Taxpayer Jane. Revenue Officer John is going to resolve the case as a financial hardship but needs Taxpayer Jane to file delinquent returns. While waiting for the returns, Revenue Officer John inputs a TC 971 AC 061 on each affected module releasing the FPLP levy. The TC 971 AC 061 generates a TC 972 AC 060 to indicate the module is released from the FPLP.

   Example:

   Taxpayer Tom, who has modules in the FPLP with TC 971 AC 060, requests an installment agreement. Revenue Officer Casey inputs a pending IA (TC 971 AC 043) on all the modules. Since TC 971 AC 043 is a FPLP exclusion TC, it will generate a TC 972 AC 060; therefore, TC 971 AC 061 is not necessary and must not be posted.

5. Any manually input TC 971 AC 061 will expire after 52 cycles (for BMF accounts, it will expire after 15 cycles, and after January 2006, 52 cycles). In order to keep the module blocked , then another TC 971 AC 061 will need to be reinput and posted prior to the expiration of the previous TC.

   Example:

   Revenue Officer Bill does not want his taxpayer's new Status 21 balance due module going into the FPLP when it changes to Status 26. He will input TC 971 AC 061 on the Status 21 module.

6. The exclusion TC or TC 971 AC 061 will generate the TC 972 AC 060 one cycle later. The TC 972 AC 060 must post before the next payment is processed by FMS in order to not levy the next payment. FMS has different cutoff dates before they process the federal payments to the taxpayer.

   FEDERAL PAYMENTPAYMENT DATEPROCESSING CUTOFF DATE

   OPM (Federal retirement income)	1st of each month	2 weeks before payment date
   SSA (OASDI) benefits	3rd of each month; 2nd, 3rd & 4th Wednesday of each month	6 business days before the payment date
   Federal employee salaries	Biweekly	7 - 14 days before payment date
   Defense and civilian agency contractor/vendor payments; Federal employee travel payments; "Miscellaneous" payments;	Daily	Cutoff dates vary; payments may be processed up to 30 days prior to payment date

7. If the TC is not posted by the processing cutoff date, then the FPLP levy may need to be released by the FPLP coordinator as discussed in the next section.

   Note:

   If the processing cutoff date is missed, then the levy release will be effective for the payments thereafter. See IRM 5.11.7.2.7, Returning FPLP Levy Proceeds, to determine if the levied payment may be returned via the manual refund process due to these timing issues.

5.11.7.2.6.1  (01-01-2006)
Emergency Release of FPLP Levy and FPLP Coordinator

1. Each SBSE Collection Area/Technical Services office has a locally designated FPLP coordinator who will have on-line and real-time access to the FMS database system in order to temporarily release or "rescind" a levy during certain situations discussed below.

2. In addition to inputting the appropriate FPLP exclusion TC or TC 971 AC 061 releasing the FPLP levy from the MF, as discussed above, if the levy on the taxpayer's next Federal payment is imminent based on the timing and payment processing cutoff chart discussed above, then a request to the local FPLP coordinator may be necessary in order to rescind the levy through the FMS database system. This may include, but is not limited to, the following situations:

   1. Open bankruptcy situations: Insolvency personnel should refer to IRM 5.9.4.4.4Common Bankruptcy Issues, Federal Payment Levy Program. Under certain conditions, the FPLP coordinator may facilitate the release from the FMS database system. Insolvency units will also input the TC 520, which will systemically generate a TC 972 AC 060 and reverse the module out of the FPLP.

   2. wrongful or erroneous levies

3. Another situation is based on a Treasury and Defense Department agencies' interagency agreement regarding the 100% FPLP levy on Defense contractor payments. Those levies will be considered for emergency release based on national security concerns due to the contractor’s inability to perform their contract, OR that the levy will jeopardize contract performance and impose significant additional costs to the Federal government. If a taxpayer claims either of these situations, and if their request for FPLP levy release is not warranted under IRM 5.11.2.2, Serving Levies, Releasing Levies and Returning Property, then collection field function employees should take the following actions:

   1. Inform the taxpayer to contact their DoD contracting officer (CO). The DoD CO should have established communication channels within the DoD and DFAS about these issues. If necessary, DoD may inform the IRS/FPLP headquarters, in writing, of the necessity of a particular contract to be performed and not levied due to national security interest or the significant additional financial cost to the Federal government, and formally request the levy release and/or return of levy proceeds of that particular contractor/taxpayer.

   2. When DoD informs FPLP headquarters, FPLP headquarters will, then, contact the FPLP coordinator, based on the taxpayer location, to initiate expedited handling of the case and direct contact from IRS to that particular contractor/taxpayer. Disagreements over these decisions or the need for additional financial information from the taxpayer as part of negotiating for these decisions will be handled on a case by case situation. See IRM 5.11.7.2.6.3, FPLP Coordinator Duties for Expedited Case Handling.

   3. While the taxpayer pursues this action to get the levy released, Collection should continue with standard operating procedures for collection, which may include allowing the levy to continue. Collection or the FPLP coordinator should not release or block the levy solely dueto the taxpayer’s claim for these reasons. The levy release determination will be based on DoD communication through IRS/FPLP headquarters, and the case will be handled accordingly.

4. To release a FPLP levy through the FPLP coordinator's rescind input, prepare Form 4844 and fax it to the FPLP coordinator. Call the FPLP coordinator to ensure receipt of Form 4844, and keep a copy of the form. Indicate on Form 4844:

   1. Under "Remarks" — FPLP Levy Release

   2. Taxpayer's TIN, name and address

   3. Signature of delegated official authorized to release levies

   Reminder:

   Do not prepare a Form 668–D, Release of Levy/Release of Property from Levy, for FMS or any federal payment agency to release a FPLP levy.

5. The levy "rescind" on the FMS database is temporary only, and effective at the time of the input until the next time the FMS database is updated with taxpayer information from the Master File, which is usually every week. The FPLP coordinator's "rescind" input in the FMS database will not upload to IDRS or MF. The " rescind" input must also be completed before the payment cutoff date as discussed above in IRM 5.11.7.2.6 (6).

   Caution:

   Since the FMS database is updated weekly with the current taxpayer information from the Master File, then the "rescind" action by the FPLP coordinator, will only last until the database is updated again, which is usually the following week. It may take up to 3 cycles before the FMS database receives the FPLP reversal TC 972 AC 060, and it may be necessary to request the rescind as often as necessary until the TC 972 AC 060 posts. It will be the responsibility of the employee requesting the "rescind" to monitor the exclusion TC and FPLP reversal TC 972 AC 060.

5.11.7.2.6.2  (01-01-2006)
FPLP Coordinator Duties

1. FPLP coordinators will have and should maintain their computer access to the FMS intranet system, known as FMS In Touch - Client Server and the Treasury Offset Program (TOP) taxpayer database, in order to input (aka "rescind" ) an emergency or stop-gap FPLP levy release.

2. The coordinators are not required to input the TC 971 AC 061 block/release or any other necessary FPLP exclusion TC. It is the responsibility of the operational/functional (i.e. ACS, Collection Field, TAS, TAC) employee resolving the case.

3. Form 4844 (or Form 668–D from those following IRM 5.19.9, ACS Liability Collection) will serve as the input document for the FPLP coordinator. The coordinator will sign onto the FMS system and rescind all the modules from the levy. Coordinators should follow IRM 1.15.28.1, Records Control Schedule for Collection, for document retention guidelines.

4. Requests for FPLP levy rescinds must be input within 24 hours of receipt.

5. The FPLP coordinator is not responsible for authorizing the levy release.

6. Coordinators should also provide subject matter support for the operating and functional divisions, and should also contact the FPLP headquarters staff for clarity and guidance.

7. In rare instances and under the guidance of FPLP headquarters staff, the coordinators may be delegated to coordinate FPLP case-related recovery efforts of systemic erroneous levy situations or expedited case handling. See IRM 5.11.7.2.6.3, FPLP Coordinator Duties for Expedited Case Handling.

5.11.7.2.6.3  (01-01-2006)
FPLP Coordinator Duties for Expedited Case Handling

1. FPLP headquarters will initiate the necessary steps with the local FPLP coordinator, in order to facilitate expedited case handling of certain FPLP cases.

2. The local FPLP coordinator will open a 193 Lien/Levy module and note the case history and initiate a mandatory outgoing Special Procedures Branch Courtesy (or Other) Investigation (SPBOI) to the collection field function, or if the case is already assigned, to the revenue officer, in order to make contact with the taxpayer. The group manager assigning the OI should advise the revenue officer that because of the sensitive nature of the investigation, contact with the taxpayer will generally be made within three (3) work days from receipt.

3. Currently, expedited FPLP case handling has been established for certain levy relief claims requested by the DoD. See IRM 5.11.7.2.6.1, Emergency Release of FPLP Levy and FPLP Coordinator. The issuance of the mandatory OI should only be the case when standard operating procedures do not apply for levy relief outlined in IRM 5.11.2.2. The mandatory OI must include the following three objectives for this expedited case handling:

   • the levy release determination and/or processing based on DoD's mitigating reasons;

   • the return of levied proceeds determination and/or processing, if applicable;

   • and resolving the collection case.

   For national security reasons:

   1. FPLP headquarters will contact the local FPLP coordinator to release the FPLP levy and/or block the FPLP with TC 971 AC 061 or the appropriate exclusion TC through the appropriate Case Processing campus site, or assigned revenue officer. There may be situations where the levy will not be fully released, but where it is agreed that only a partial amount (less than 100%) may still be levied. There will be no OI levy release determination necessary from the collection field function; the local FPLP coordinator will open a 193 Lien/Levy module and note the case history. The levy release, as determined by IRS FPLP headquarters, should be completed within 48 hours of DoD's request.

   2. For the return of levied proceeds, if applicable, IRS FPLP headquarters will request FMS to electronically return the proceeds (full or partial) to the taxpayer directly. (Standard IRS manual refund procedures of these levied proceeds will not be initiated in these situations.) There will be no OI determination necessary from the collection field function; the local FPLP coordinator will open a 193 Lien/Levy module and note the case history. The return of levied proceeds will be indicated with a TC 672 DPC 18 and will be electronically refunded by FMS back to the taxpayer’s financial account to which it would have originally been deposited - usually within 48 hours from the time FMS receives the request from the IRS.

   3. The case will still need to be resolved through the ICS mandatory OI by the collection field function or assigned revenue officer. This mandatory OI will require expedited handling to ensure resolution of the case in order to satisfy any outstanding national security and interagency concerns.

   For significant additional cost to the Federal government reasons:

   1. FPLP headquarters will contact the local FPLP coordinator to facilitate the issuance of an outgoing SPBOI mandatory OI to the collection field function. The collection field function should make contact with the taxpayer generally within 48 hours of receipt of the OI, make a levy release determination and notify FPLP headquarters. The levy release determination should take into consideration the mitigating circumstances presented by the DoD due to the potential loss to the Federal government. If the levy release is warranted, then process the release. See IRM 5.11.7.2.6. Blocking or Releasing FPLP Levy. There may be situations where the levy will not need to be fully released when it is agreed that only a partial amount (less than 100%) may still be levied. To receive only a partial amount of the FPLP levy payment under these reasons, the 100% FPLP payment will need to be posted, and then a partial return of levy proceeds should be processed.

   2. The return of levy proceeds, if warranted, will also be considered on a case by case basis by the collection field function and if returning the (partial or full) proceeds are warranted, then process through the standard manual refund procedures within IRS. See IRM 5.11.7.2.7, Returning FPLP Levy Proceeds.

   3. The case will still need to be resolved through the mandatory OI by the collection field function. This mandatory OI will require expedited handling to ensure resolution of the case in order satisfy any outstanding interagency concerns.

   Note:

   In these situations, it is the IRS contacting the taxpayer regarding the levy relief, and not the taxpayer contacting the IRS. Therefore, during the course of resolving the case in either situation, if the taxpayer does not make the concerted effort to contact and/or resolve the case with the revenue officer, it may be necessary to contact FPLP headquarters through the FPLP coordinator to determine if the FPLP should continue and to consider its impact with the DoD. Contact may be made with DoD as long as Third Party contact provisions are satisfied.

5.11.7.2.6.4  (01-01-2006)
Removal (Reversal) of the FPLP Block with TC 972 AC 061

1. There are systemic and manual criteria that determine when the FPLP block transaction code (TC 971 AC 061) is reversed with TC 972 AC 061.

2. The following conditions systemicallygenerate a TC 972 AC 061 to remove or reverse an existing FPLP block. (The DLN of the TC 972 AC 061 will display a series of 8s or 9s, with the exception of the Status 22 condition described below.):

   • Status 22: Status 22 modules assigned into in certain ACS inventories. See IRM 5.19.9.3.2.1 (2), FPLP Selection Criteria. (The DLN of these TC 972 AC 061s will display a random series of numbers.)

   • Status 26: After July 2004, all status 26 modules with a systemic block.

   • Expiration: Any manual input of TC 971 AC 061 after January 2005 on an IMF module expires 52 cycles later (on BMF modules, the TC expires after 15 cycles; after January 2006, for BMF modules, the TC will expire after 52 cycles), and is systemically reversed with TC 972 AC 061.

   • Non-FPLP status: When an FPLP module, i.e. Status 24, that has either a systemic or manual TC 971 AC 061, moves into a non-FPLP status, i.e. Status 58, it is systemically reversed with TC 972 AC 061.

   .

3. Revenue officers may manually reverse any (systemic and/or manual) TC 971 AC 061 with a TC 972 AC 061, at anytime during their collection case strategy in order to place the module into the FPLP. (The DLN on TC 972 AC 061 manually input will display a random series of numbers.) The module should then be systemically selected into the FPLP, as along as the FPLP selection criteria is met. See IRM 5.11.7.2.2, FPLP Module Selection Criteria.

5.11.7.2.7  (01-01-2006)
Returning FPLP Levy Proceeds

1. FPLP payments are systemically identified with a TC 670 DPC 18.

2. Due to timing issues,where a levy has been released and the levied payment has already been processed by FMS, but not yet transmitted to the Service by the pay date, the levied payment may be returned to the taxpayer in accordance with IRM 5.11.2.3,Authority for Returning Levied Property to the Taxpayer. There may be other situations, as discussed in IRM 5.11.2.3, where the levied proceeds that had already been received prior to the levy releasemay be returned to the taxpayer and a manual refund processed.

   Note:

   The TC 670 DPC 18 payment will need to post on the account prior to taking these actions.

3. In situations where a paper levy and FPLP levy attached the same Federal payment simultaneously, the paper levy proceeds will need to be returned in accordance with IRM 5.11.2.3. Chief Counsel has opined that the FPLP statute did not intend for both levies to be in effect on the same payment, where 15% of the payment was attached by the FPLP, and the paper levy attaches the remaining amount, or vice-versa. Since the paper levy should not have been issued nor honored, because the FPLP is indicated on the account, then the paper levy proceeds need to be refunded, as the administrative procedures were not followed to prevent simultaneous levies.

   Example:

   Taxpayer Vickie's Social Security payment for October 2004 was levied for 15% through the FPLP and a paper levy attached the remaining amount. The revenue officer did not block the FPLP prior to issuing a paper levy or did not put the paper levy in continuous levy (Status 60) status to prevent the FPLP. SSA did not stop the paper levy disbursement, and remitted proceeds for the paper levy while the FPLP systemically levied also. The paper levy proceeds should be returned and refunded.

4. Returning the levied proceeds must only be approved by the delegating official authorized to return levy proceeds as directed under Delegation Order 191. Process the return of FPLP levy proceeds using the manual refund procedures found in IRM 5.1.15.7,General Handbook, Account Transfers, Adjustments, Payment Tracers, Credit Transfer, and Refunds, Requests for Manual Refunds.

5.11.7.3  (01-01-2006)
Alaska Permanent Fund Dividend Levy Program

1. The Alaska Permanent Fund Dividend (AKPFD) Levy Program is an automated levy program, which operates in conjunction with the State of Alaska, Department of Revenue, Permanent Fund Dividend Division (PFDD).

2. Information pertaining to the AKPFD criteria, process and procedures can be found under IRM 5.19.9, Collection, Liability Collection, Automated Levy Programs.

Exhibit 5.11.7-1  (01-01-2006)
NFC and NBC Agencies

Exhibit 5.11.7-2  (01-01-2006)
FPLP Exclusion Criteria

An entity that has one or more of the following codes in any balance due module, will either be systemically reversed out of or not selected for the FPLP:

A balance due module that has one of the following, will be systemically reversed out of or not selected for the FPLP:

Any IMF entity with the following is not subject to a FPLP levy on Social Security payment(s):

The following entity or module will be systemically blocked from the FPLP and may be manually unblocked to be included into the FPLP:

Exhibit 5.11.7-3  (01-01-2006)
Document Locator Number (DLN) Format of Federal Payment Type

FPLP Document Locator Number Positions

The values for positions 7, 8, 9, & 10 identify the Federal Payment Agency.

Note:

See Exhibit 5.11.7-4. for a complete list of the Federal Payment Agency Identifier codes.

Example:

Office of Personnel Management: 0108

The values for positions 11 & 12 identify the Type of Federal Payment:

• 01 – Social Security benefit payment

• 02 – Federal retirement income

• 03 – Federal contractor or vendor payment (limited to BMF only)

• 03—Federal employee travel advance/reimbursement payment (limited to IMF only)

• 04 – Federal salary payment

The value for position 13 identifies whether FMS matches a record for the taxpayer or if funds were levied:

• 0 — Federal disbursement matched

• 1 — Federal disbursement levied

The DLN listed above would indicate that FMS matched (position 13 = 0) records with OPM (positions 7, 8, 9 & 10) on an OPM payment (positions 11, 12 & 13).

Other examples:

Example:

TC 971 AC 062 DLN 28277–901–08020–0
Match — OPM (Federal source) on federal retirement payment.

Example:

TC 971 AC 062 DLN 28277–902–07011–0
Levy — SSA (Federal source) on Social Security benefit payment.

Example:

TC 971 AC 062 DLN 28277–904–07041–0
Levy — National Finance Center (Federal source) on federal salary payment.

Exhibit 5.11.7-4  (01-01-2006)
Federal Payment Agency Identifier Code List

Exhibit 5.11.7-5  (01-01-2006)
CP 90 (or 297) Final Notice, Notice of Intent to Levy and Notice of Your Right To A Hearing

Exhibit 5.11.7-6  (01-01-2006)
CP 91 (or 298) Final Notice Before Levy on Social Security Benefits

Exhibit 5.11.7-7  (01-01-2006)
Department of the Treasury, Financial Management Service (FMS) Notice to Taxpayers