IRM 5.11.7 — Automated Levy Programs

October 22, 2024

(1) This transmits revised IRM 5.11.7, Notice of Levy, Automated Levy Programs.

This IRM information pertains to the Collection automated levy programs' criteria and procedures. These programs are the State Income Tax Levy Program, Federal Payment Levy Program, Alaska Permanent Fund Dividend Levy Program, and Municipal Tax Levy Program.

(1) Revised text throughout for editorial changes, updated broken links, changed W&I to Taxpayer Services, changed FMS to BFS, and updated signature name.

IRM 5.11.7, Automated Levy Programs, dated July 1, 2022, is superseded.

SBSE Collection Employees (except Campus Compliance), Appeals, and Taxpayer Services

(10-22-2024)

Information intended for Campus Compliance and other personnel can be found in IRM 5.19.9, Liability Collection, Automated Levy Programs.

Erick Martinez
Director, Collection Inventory, Delivery & Selection
Small Business/Self-Employed Division

5.11.7.1

(07-01-2022)

1. Purpose:This IRM contains guidance for working Automated Levy Programs (ALPs). The ALPs include the Federal Payment Levy Program (FPLP), the State Income Tax Levy Program (SITLP), the Alaska Permanent Fund Dividend Levy Program (AKPFD), and the Municipal Tax Levy Program (MTLP).

2. Audience:This IRM is designed for use by revenue officers, collection advisors, specialty collection insolvency advisors and their managers.

3. Policy Owner:Director, Collection Inventory, Delivery & Selection (CIDS), Small Business/Self-Employed Division (SBSE).

4. Program Owner:Automated Programs (an organization within CIDS).

5. Primary Stakeholders:SB/SE revenue officers, collection advisors, specialty collection insolvency advisors

6. Program Goals:Enforcement is a necessary component of a voluntary assessment system, see IRM 1.2.14.1.1 Policy Statement 5-1. While we will actively assist taxpayers to comply, we will also take appropriate enforcement actions when warranted to resolve the delinquency. Levies are an important enforcement tool. This IRM section provides the fundamental knowledge and procedural guidance for revenue officers in making levy determinations. This IRM section provides the fundamental knowledge and procedural guidance for blocking and unblocking, the ALPs. By following the procedures in this IRM employees will be able to block and unblock levies that are procedurally and legally correct to promote long-term voluntary compliance.

5.11.7.1.1

(07-01-2022)

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 payments referred to as "specified payments." This Internal Revenue Manual (IRM) section provides revenue officers, collection advisors and specialty collection insolvency advisors directions for this levy process.

5.11.7.1.2

(07-01-2022)

1. Authorities relating to this section include:

   Authority	Title
   IRC 6103	Confidentiality and Disclosure of returns and return information
   IRC 6330	Notice and opportunity for hearing before levy
   IRC 6331	Levy and distraint
   IRC 6332	Surrender of property subject to levy
   IRC 6334	Property exempt from levy
   26 CFR 301.6331-1	Levy and distraint
   26 CFR 301.6332-1	Surrender of property subject to levy
   26 CFR 301.6334-1	Property exempt from levy
   26 CFR 301.6343-1	Requirement to release levy and notice of release
   26 CFR 301.6343-3	Return of property in certain cases
   Rev. Proc. 2010-16	Definition of Last Known Address

5.11.7.1.3

(07-01-2022)

1. The Director, Collection Inventory, Delivery & Selection is responsible for all policies within the automated levy programs.

2. Managers are responsible for ensuring these procedures are followed and employee actions are timely and accurate

3. Revenue officers, collection advisors and specialty collection insolvency advisors are responsible for following the procedures in this IRM.

5.11.7.1.4

(07-01-2022)

1. Targeted program reviews are periodically performed by Automated Programs to determine whether IRM guidance requires clarification or revision.

2. Management will ensure program effectiveness through program and operational reviews conducted by Automated Programs.

3. The IRS adopted the Taxpayer Bill of Rights (TBOR) in June 2014. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Publication 5170, Taxpayer Bill of Rights.

5.11.7.1.5

(07-01-2022)

1. Accounts subject to the Federal Payment Levy Program are identified by various IDRS transaction codes and the BFS indicator.

5.11.7.1.6

(07-01-2022)

1. Automated Levy Programs issue automated levies. Levies are transmitted electronically and levy proceeds are also received electronically.

2. The most commonly used acronyms used in this IRM are shown below.

   Acronym	Definition
   AKPFD	Alaska Permanent Fund Dividend Levy Program
   ALP	Automated Levy Programs
   BFS	Bureau of the Fiscal Service
   CDP	Collection Due Process
   CMS	Centers for Medicare and Medicaid Services
   DETL	Disqualified Employment Tax Levy
   DFAS	Defense Finance and Accounting Service
   FEDCON	Federal Contractor
   FERDI	Federal Employee/Retiree Delinquency Initiative
   FPLP	Federal Payment Levy Program
   LIF	Low Income Filter
   MTLP	Municipal Tax Levy Program
   OPM	U.S. Office of Personnel Management
   SITLP	State Income Tax Levy Program
   SSA	Social Security Administration
   TAS	Taxpayer Advocate Service
   USPS	U.S. Postal Service

5.11.7.1.7

(07-01-2022)

1. Employees will refer to related sections of IRM 5.11, Notice of Levy, as directed in this IRM.

2. Additional helpful information can be found on the Servicewide Electronic Research Program (SERP) website.

5.11.7.2

(09-23-2016)

1. The State Income Tax Levy Program (SITLP) is one of four 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, Liability Collection, Automated Levy Programs.

5.11.7.3

(09-23-2016)

1. The Federal Payment Levy Program (FPLP) is an automated levy program the IRS has implemented with the Department of the Treasury, Bureau of the Fiscal Service (BFS) since 2000.

2. BFS administers the Treasury Offset Program (TOP) to collect delinquent non-tax debts for federal agencies. The FPLP was developed to interface with BFS TOP as a systemic and efficient means for the IRS to collect delinquent taxes.

3. IRS provides a weekly file of delinquent taxpayers to BFS. BFS matches the delinquent taxpayer file against federal payment files.

5.11.7.3.1

(07-01-2022)

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 payments referred to as "specified payments."

2. The FPLP was developed as the automated means intended 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. The federal agencies participating in this automated levy program process understand how this levy statute is administered and that the service of a paper levy document is the means of levy intended under IRC 6331(a) and/or (e).

3. The law allows up to fifteen percent (15%) of specified payments to be levied. specified payments under IRC 6331(h)(2)(A) include any federal payment other than a payment for which eligibility is based on the income and/or assets of a payee. Specified payments, under IRC 6331(h)(2)(C), includes any annuity or pension under the Railroad Retirement Act, or benefit under the Railroad Unemployment Insurance Act. The payments subject to 15% in the FPLP are discussed in the next section. See IRM 5.11.7.3.1.1, IRS/BFS Interagency Agreement - Federal Payments Subject to the FPLP.

4. IRC 6331(h)(3) allows an increase of this continuous levy for up to one hundred percent (100%) of any specified payment due to a vendor of property, goods or services sold or leased to the Federal government. The 100% levy increase is incorporated into the FPLP for federal contractor/vendor payments. See IRM 5.11.7.3.1.1, IRS/BFS Interagency Agreement - Federal Payments Subject to the FPLP.

5. AlthoughSpecified payments may include unemployment benefits, workmen's compensation, certain public assistance payments, and the minimum exemption (from the levy of) wages, salary and other income, the IRS will not pursue these payments at this time.

6. The FPLP administers a levy. It is not a statutory or administrative offset. There are legal distinctions between the two civil collection actions. One distinction is that a levy is often subject to IRC 6330, Notice and opportunity for hearing before levy (Collection Due Process). Contact your local Area Counsel for more information.

7. Under IRC 6330(f), the IRS can serve a levy to collect employment taxes prior to notifying the taxpayer of their right to a Collection Due Process (CDP) hearing if the levy qualifies as a "disqualified employment tax levy" (DETL), and it can serve a levy on a "federal contractor (FEDCON)" prior to notifying the taxpayer of their right to a CDP hearing. If these levies are served under IRC 6331(h) as FPLP levies, the post-levy CDP rights are granted under IRC 6330(f). Additional information on DETL levies can be found in IRM 5.1.9.3.14, Disqualified Employment Tax Levy. Further information on the FPLP DETL and FEDCON levies is in the subsections below.

8. In serving a notice of levy, or release of such levy, with respect to any applicable government payment, IRC 6103(k)(6) authorizes BFS to send levy information to non-Treasury disbursed offices such as the Defense Finance and Accounting Service (DFAS), the US Postal Service (USPS), and Centers for Medicare and Medicaid Services (CMS), to the extent that such disclosures are necessary to obtain information, which is not otherwise reasonably available, for investigatory and tax administration purposes. Furthermore, IRC 6103(n) permits the disclosure of returns and return information to any person to the extent necessary in connection with the processing, storage, transmission and reproduction of such returns and return information, the programming, maintenance, repair, testing, and procurement of equipment, and the provisions of other services, for tax administration purposes.

5.11.7.3.1.1

(07-01-2022)

1. The interagency agreement between the IRS and BFS provides for certain federal payments disbursed or administered by BFS to be systemically and continuously levied. BFS is the levy source for all levies issued through the FPLP — not the federal payment agencies.

2. The following federal payments are subject to the FPLP:

   Federal Payment Type	Explanation
   Civil Service or Federal employee retirement pension annuities	Are administered through the Office of Personnel Management (OPM) Civil Service Retirement System (CSRS) and Federal Employee Retirement System (FERS). The FPLP will levy 15% of the payment.
   Treasury disbursed Federal civilian agency (non-Defense) contractor/vendor payments	The FPLP will levy 100% of the payment.
   Federal employee travel payments	Advances and reimbursements. The FPLP will levy 15% of the payment.
   Federal (civilian) employee salaries	Are administered by the salary paying agencies (SPA): United States Department of Agriculture (USDA) National Finance Center (NFC) Department of the Interior (DoI) National Business Center (NBC), USPS, General Services Administration (GSA), and Defense Finance and Accounting Service (DFAS).
   Social Security Administration (SSA) benefit payments under Title II of the Social Security Act	AKA Federal Old Age, Survivors and Disability Insurance (OASDI) benefits. (The exceptions are disability insurance payments, dependent child benefits, claims for lump sum payments, and payments that have partial withholding to repay an SSA benefit overpayment.) The FPLP will levy 15% of the payment.
   Department of Defense (DoD) contractor/vendor payments	Are paid through the Defense Finance and Accounting Service's (DFAS) payment systems. The FPLP will levy 100% of the payment.
   Army Corp of Engineers (ACOE) and the United States Postal Service (USPS) contractor/vendor/supplier payments.	The ACOE payments are levied at 100% of the payment. The USPS vendor/supplier payments are levied at 100%.
   Centers for Medicare and Medicaid Services (CMS) - Medicare Parts A (hospital), B (doctor), C (managed care) and D (prescription) provider and supplier payments	Medicare Parts A and B payments are disbursed through the CMS Healthcare Integrated Government Ledger Accounting System (HIGLAS) are in the FPLP. Medicare Parts C and D payments are disbursed by the Treasury Department and are in the FPLP. Medicare provider/supplier payments are levied at 100% of the payment, per the Medicare Access and CHIP Reauthorization Act of 2015.
   Miscellaneous Payments	Non-means tested, such as discretionary one-time payments and expenditures paid out by different Federal agencies' specialty programs. These are payments made for various federal program-related expenditures, including: interagency transfers non-means tested loans grants medical, and emergency and other administrative obligations Also, included are payments from the Commodity Credit Corporation, also known as farm subsidy payments. The FPLP will levy 15% of the payment.
   Railroad Retirement Board (RRB) Benefit Payments	Are monthly annuity or pension payments under the Railroad Retirement Act (RRA), except the RRA Tier 2 benefit portion. The FPLP will levy 15% of the payment.
   Military Retirement Payments	Are administered by the Defense Finance and Accounting Service (DFAS). FPLP will levy 15% of the payment.

3. Prior to 2006, on delinquent IMF joint income tax and BMF sole proprietor tax liabilities, the FPLP only levied federal payments that matched to the primary TIN. Starting January 2006, FPLP also began matching and levying federal payments identified for valid secondary or cross-reference (XREF) SSNs on those IMF and BMF accounts.

4. See Exhibit 5.11.7-2, Table of Federal Payments Subject to the FPLP, for the payment types that are levied through the FPLP; the type of Master File accounts that match with a certain federal payment type; and the levy percentage, i.e. 15% or 100%.

5. 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. Likewise, if both spouses on joint income tax liabilities are receiving federal payments subject to the FPLP, then both will be levied. The FPLP cannot levy only a certain spouse separately for their joint delinquent tax module.

5.11.7.3.1.2

(08-12-2011)

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 5-3. See IRM 1.2.44.4, Levy on Property in the Hands of a Third Party.

2. Certain Taxpayer Advocate Service (TAS) employees are delegated to release systemically generated levies such as the FPLP, but only under the procedures contained in IRM 5.11.7.3.6 (or successor provisions). See Delegation Order No. 13-2 (Rev 1.), IRM 1.2.50.3. TAS employees cannot, however, take action on a case that is open in another function. TAS employees may only generate levy releases on collection modules not assigned to Automated Collection System (ACS) Status 22 with an open control base only or collection field Status 26. See IRM 13.1.4.2.3.15, Levy Release Authority and Return of Levy Proceeds, or refer to TAS Delegation Order authorities and successor revisions.

5.11.7.3.1.3

(09-23-2016)

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 BFS (or other federal agencies and third parties) about taxpayers subject to FPLP.

5.11.7.3.2

(07-01-2022)

1. The FPLP is a systemic process where all modules are first selected under certain collection statuses, but then may be excluded if certain freeze codes exist while in the status. This subsection and its exhibits describe the selection and exclusion process.

2. The following Individual and Business Master File (IMF and BMF) balance due tax accounts with the collection module status can be selected into the FPLP:

   1. Taxpayer Identification Number (TIN)is a valid Social Security Number (SSN) or Employer Identification Number (EIN);

   2. Master File Tax Code (MFT) is 01 through 06, 08 through 17, 29 through 31, 33, 34, 36, 37, 43, 44, 50, 51, 55, 60, 63, 64, 67, 77, 78, 82, 83;

   3. Collection Module Status is Master File Status 22, 23, 24, 26 or Integrated Data Retrieval System (IDRS) Transaction Code (TC) 530, with Closing Code (CC) 03, 06, 09, 10, 12, 37, 38 or 39.

5.11.7.3.2.1

(08-12-2011)

1. For a BMF employment tax module (MFT 01, 10, 11, 14 and 16) to qualify for a DETL, there must have been a CDP hearing previously requested on another BMF employment tax module no more than two years prior to that DETL-qualified module's period end date.

2. BMF employment tax modules that are selected into the FPLP, may also be subject to the DETL process. In order to select FPLP DETL periods, a new FPLP BMF entity indicator "AC 630 (YYYYMMDD) DATE" has been created. This new indicator is displayed in the BMF entity CC BMFOLE. A taxpayer's employment tax module may be selected for a FPLP DETL, if the entity indicator's action code (AC) 630 date is within the "two-year look back" period of that DETL-qualifying module's period end date.

3. The FPLP BMF entity indicator "AC 630 (YYYYMMDD) DATE" is defined as the following:

   1. The FPLP BMF entity indicator "AC 630 YYYYMMDD" will display a date which is the tax period end date of the latest BMF employment tax module containing a posted TC 971 AC 630 (levy or levy/lien combo for CDP appeal hearing request.)

   2. "AC 630 YYYYMMDD" can only post one employment tax module's period end date at a time. For entities that have multiple employment tax modules with a TC 971 AC 630, the FPLP and BMF will post the period end date of the latest module with a TC 971 AC 630. The DETL would be issued on balance due modules where the indicator date is within two years of the modules' period end date - which will likely be later periods. The rationale is to issue the DETL on later pyramiding tax periods/quarters.

   3. Even if the latest employment tax period with a TC 971 AC 630 is reversed by a Withdrawal - that period's end date will still be displayed.

   4. "AC 630 YYYYMMDD" period end date can be overlaid when a later period employment tax module posts a TC 971 AC 630. This is regardless of the TC 971 AC 630 posting date. Again, as stated, the indicator will always post from the latest period employment tax module with a TC 971 AC 630. Therefore, be aware that a DETL-qualified module may have been selected based on an earlier posted "AC 630" period end date.

4. All federal payments available in the FPLP, except SSA and RRB payments, may be subject to a FPLP DETL. (The CDP notice will be issued prior to issuing the FPLP levy on SSA payments.)

5. See IRM 5.11.7.3.3, FPLP Systemic Processes and Indicators, and IRM 5.11.7.3.3.4, Levy Service Process, for the specific transaction codes on how to recognize when an employment tax module is selected into the FPLP DETL process.

5.11.7.3.2.2

(08-12-2011)

1. Tax modules or the taxpayer entities that qualify for the FPLP but have certain condition and freeze codes under the primary Taxpayer Identification Number (TIN) will be excluded from FPLP selection.

2. Accounts that are generally excluded from the FPLP are those that, statutorily or operationally, should not be in levy status and are coded that way in the Master File or Taxpayer Information File. Those accounts include unable-to-pay; pending installment agreements (IA) posted prior to a FPLP levy; approved installment agreements; pending or approved Offers-in-Compromise (OIC); open Disaster Zone indicators; Combat Zone; open bankruptcies or litigation; certain pending claims and adjustments; innocent spouse modules; and certain imminent Collection Statute Expiration Date (CSED) modules. See Exhibit 5.11.7-3, FPLP Exclusion Criteria, which displays the list and description of entity and module transaction and freeze codes that are excluded from FPLP.

3. Social Security benefit payments will not be subject to the FPLP levy if either of the following exists:

   • the taxpayer enters into a repayment agreement with the Social Security Administration (SSA) because of overpaid benefits.

   • if SSA has an active IRS paper levy (Form 668-W) it is honoring. By interagency agreement, SSA may honor the paper levy instead of the FPLP levy if a taxpayer is erroneously levied with both the paper and FPLP attaching their benefits, known as a "double levy" situation. Instead of returning the paper levy, SSA will honor it in lieu of the FPLP. The FPLP will need to be removed from the account. See IRM 5.11.7.3.5.1, FPLP or Paper Levy.

5.11.7.3.2.3

(07-01-2022)

1. Delinquent Individual Master File (IMF) taxpayers who qualify for the FPLP and are reported to receive SSA benefit, military retirement payments or Railroad Retirement Board (RRB) benefit payments, will be excluded from the program if their estimated total income falls below 250% of the Department of Health and Human Services (HHS) Poverty Level Guidelines (PLG). These taxpayers are processed through the FPLP Low Income Filter (LIF).

2. Taxpayers who have any of the following conditions are not processed through the FPLP LIF analysis and are selected into the FPLP:

   • there is a delinquent unfiled return coded as a Tax Delinquency Investigation (TDI) status 03 under the entity’s primary SSN;

   • the current entity name line does not match with the balance due module name line;

   • the entity spouse SSN is invalid;

   • certain asset documents under the entity's SSN(s) are reported in IRP:

   • the SSA or RRB income under the entity SSN(s) is not reported to the Information Returns Processing (IRP) Master File.

3. In the LIF process, the total income source examined on these taxpayers will be either the total positive income (TPI) from their current year income tax return, if any, orfrom certain income documents reported on the current year IRP Master File, whichever is later. See Exhibit 5.11.7-4, Low Income Filter Estimated Income - Information Returns Processing Master File. If both current year documents are available, then the source with the greater amount is examined.

4. Taxpayer accounts that are processed through the FPLP LIF are identified with TC 971 AC 543 posted in their entity. The TC 971 AC 543 indicates that the FPLP LIF analysis processing has taken place to determine if the balance due modules should be selected or excluded from the FPLP.

5. The TC 971 AC 543 will display:

   • date and cycle of the LIF analysis

   • total income amount

   • income source identified - either 'IR' or 'TP', followed by a 1 (income below) or a 2 (income at or above 250% of the PLG amount)

   • income source year

6. If the TC 971 AC 543 total income amount is below 250% of the HHS PLG amount, then the taxpayer’s balance due modules will be excluded or removed from the FPLP. If the income amount is at or above 250% of the PLG amount, then the taxpayer’s balance due modules will be selected into the FPLP.

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5.11.7.3.2.4

(09-23-2016)

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 Document Locator Number (DLN) displaying a series of 8s or 9s). Under certain conditions, these accounts may be manually or systemically unblocked. See IRM 5.11.7.3.6.4, Removal (Reversal) of the FPLP Block with TC 972 AC 061.

   1. All modules moving into Status 22 (ACS) are systemically blocked.

   2. State and local government entities with employment code "G" and/or "T" , and Indian Tribal Governments (ITG) and Alaska Native Villages with Master File indicator "I" are systemically blocked from the FPLP with TC 971 AC 061. If it is necessary to collect the accounts through the FPLP, then collection employees may manually unblock (TC 972 AC 061) these entities' balance due modules.

5.11.7.3.3

(09-23-2016)

1. The FPLP has five (5) systemic processes. Each process has its own specific transaction code (TC) and/or indicators and are outlined in the following subsections.

   1. Case and Module Selection Process (TC 971 AC 060)

   2. Matching Process (TC 971 AC 062)

   3. FPLP Notice Process (TC 971 AC 069 or AC 169)

   4. Levy Service Process (TC 971 AC 662, AC 762, AC 677)

   5. Levy Payment Process (TC 670 DPC 18 or 19)

2. The table below describes, in general, the FPLP transaction codes on a module. The subsections provide more detail. These TCs are systemically generatedonly (unless otherwise noted as being able to manually input).

   FPLP TC 97X Codes

   FPLP GENERATED TRANSACTION (TC 971) ACTION CODES (AC)	FPLP ACTION	POSTED DEFINITION (TC 971)	REVERSAL DEFINITION (TC 972)	REFERENCE
   AC 060	SELECTION	Module selected for FPLP.	Module reversed out of FPLP. Reverses TC 971 AC 060. Also reverses TC 971 AC 662, 762, 677.	IRM 5.11.7.3.3.1
   AC 061(may be manually input)	BLOCK OR RELEASE	Module blocked from FPLP.	Reversal of FPLP Block on module. Reverses TC 971 AC 061 - systemic or manual.	IRM 5.11.7.3.2.4IRM 5.11.7.3.6.4
   AC 062	MATCH	FPLP account matched with a federal payment, or FPLP account will be posting a levied federal payment. The DLN displays the federal agency source; the type of federal payment and that a match is found. The "XREF TIN" field may display the primary or secondary/XREF TIN that matched with the federal payment. The "Miscellaneous" field may display more federal agency source codes.	Federal payment match posted in error. Reverses TC 971 AC 062.	IRM 5.11.7.3.3.2Exhibit 5.11.7-5Exhibit 5.11.7-6
   AC 069 (may be manually input)	CDP NOTICE	FPLP generated the collection due process, Intent to seize your assets and notice of your right to a hearing(CP 90 or 297) from the TC 971 AC 062 match. Or, the FPLP generated the DETL or FEDCON post-levy collection due process, Notice of seizure and notice of your right to a hearing(CP 297A, 90C or 297C) (see below). For IMF joint returns, the spouse SSN will be displayed on the XREF TIN field, including each of the SSNs on joint income tax liabilities. For BMF, no XREF TIN will display. Other CDP notices may display the TC 971 AC 069: -LT 11 : ACS issued -L1058: Field Collection issued -CP 77 or 177: Alaska Permanent Fund Dividend Levy Program (AKPFD) issued -CP 92: State Income Tax Levy Program (SITLP) issued	CDP notice not mailed. Reverses TC 971 AC 069.	IRM 5.11.7.3.3.3IRM 5.11.7.3.4
   AC 169	SSA NOTICE	FPLP generatedIntent to seize up to 15% of your Social Security benefits (CP 91/298). The XREF TIN field will display the matched SSN of either the primary or secondary/XREF SSN from the TC 971 AC 062.	CP 91/298 not mailed. Reverses TC 971 AC 169.	IRM 5.11.7.3.3.3IRM 5.11.7.3.4
   AC 662	SERVICE OF LEVY	A FPLP levy is served to BFS whether or not a federal payment source is found. The account will have a FPLP federal payment source only if a TC 971 AC 062 or a TC 670 DPC 18 or 19 also posts. The "Miscellaneous" field will display the literal "SAL-OTH-RRB" (which is a levy for all federal payment types except SSA) or "SSA " . For current levies issued prior to January 2009, the "Miscellaneous" field will also display the literal "PREEXISTING" .	TC 972 AC 662 does not display. Reversal of this AC is known when a subsequent TC 972 AC 060 is systemically posted. FPLP levy is released. Module is removed from the FPLP.	IRM 5.11.7.3.3.4
   AC 762	SERVICE OF DETL	A FPLP Disqualified Employment Tax Levy (DETL) is served to BFS whether or not a federal payment source is found. The 971 AC 762 levy will generate the DETL post-levy CDP notice (CP 297A) and posts a TC 971 AC 069. The account will have a FPLP federal payment source only if a TC 971 AC 062 or TC 670 DPC 18 or 19 posts.	TC 972 AC 762 does not display. FPLP DETL levy is released and module is removed from the FPLP when a subsequent TC 972 AC 060 is systemically posted.	IRM 5.11.7.3.3.4
   AC 677	SERVICE OF FEDCON LEVY	A federal contractor (FEDCON) levy is served to BFS if there is a federal contractor indicator (TC 971 AC 647) on the entity. The 971 AC 677 generates a FEDCON post-levy CDP notice (CP 90C or 297C) and posts a TC 971 AC 069. The "Miscellaneous" field will display the literal "SAL-OTH" (which is a levy for all federal payment types except SSA or RRB.) The account will have a FPLP federal payment source only if a TC 971 AC 062 or TC 670 DPC 18 or 19 posts.	Reversal TC 972 AC 677 does not display. FPLP FEDCON levy is released and module is removed from the FPLP when a subsequent TC 972 AC 060 is systemically posted.	IRM 5.11.7.3.3.4
   AC 062	LEVY HIT	FPLP account will be posting a levied federal payment. (Subsequent TC 670 to follow.) The DLN displays the federal agency source; the type of federal payment and that a levy hit was found. The "XREF TIN" field may display the primary or secondary/XREF TIN that receives the federal payment. The "Miscellaneous" field may display more federal agency source codes.	Federal payment levy hit posted in error. Reverses TC 971 AC 062.	IRM 5.11.7.3.3.2Exhibit 5.11.7-5Exhibit 5.11.7-6

   Other FPLP codes

   OTHER FPLP TC'S	FPLP ACTION	POSTED DEFINITION	REVERSAL DEFINITION	REFERENCE
   TC 670 DPC 18 or 19	FPLP LEVY PAYMENT POSTED	FPLP designated payment code. DPC 18 is from the primary TIN; DPC 19 is from the secondary or XREF SSN.	TC 672 - systemic reversal of TC 670 DPC 18 or 19. FPLP payment reversed by BFS due to non-entitlement claim initiated by federal payment agency source.	IRM 5.11.7.3.3.5

5.11.7.3.3.1

(10-22-2024)

1. All delinquent modules that meet the selection criteria will be transmitted to BFS to be matched with federal payments. See IRM 5.11.7.3.2, FPLP Selection Criteria.

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 BFS CD:1, and IDRS entity screens (cc ENMOD) will display BFS-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. Integrated Collection System (ICS) will display a red literal" FPLP"indicator on the case summary screens. The red "FPLP" is generated from the IDRS entity screen indicator BFS CD>1.

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

      BFS CD (VALUE) ON MODULE	DEFINITION
      1	Not selected into the FPLP, but at one time was included. (Do not confuse this module value with the entity value of BFS 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:

      BFS CD (VALUE) ON MODULE	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

3. The FPLP cases that are sent to BFS become part of the BFS National Interactive Delinquent Debtor Database (NIDDD) of U.S. Federal debtors, which includes non-tax debtors. This BFS federal debtor database is shared with the GSA System for Award Management (SAM) database. SAM (https://www.sam.gov) is the Federal government's centralized registrar database of taxpayer entities who register to bid for a federal contract or grant. The SAM flags federal registrants who have federal debt in the BFS NIDDD, including FPLP tax debt. The SAM record will indicate 'yes' or 'no' for a federal debt. No other debt information is provided. If a registrant inquires about their debt flag, then BFS or GSA will refer them to the IRS to resolve their accounts. For IRS tax debts, a taxpayer's debt flag will be removed when they are removed from the FPLP.

5.11.7.3.3.2

(09-23-2016)

1. Once a tax module is selected for the FPLP, it is transmitted to BFS. If BFS identifies a Federal payment or source match, then a TC 971 AC 062 will post on the module.

2. The matched TIN will be displayed under the TC 971 AC 062 XREF field for IMF accounts and BMF accounts.

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

   • Federal payment agency source codes

   • Type of federal payment matched

   • If the module identified a match and/or an impending levy payment. See Exhibit 5.11.7-5, TC 971 AC 062 Document Locator Number (DLN) Format of Federal Payment Type, for the descriptive format of the TC 971 AC 062 DLN, and Exhibit 5.11.7-6, Federal Payment Agency Identifier Code List, for the type of federal payment and federal payment agency source.

4. If the TC 971 AC 062 DLN indicates match - the TC will post on all FPLP modules. The "match" TC 971 AC 062 will generate the FPLP notice process discussed below.

5. If the TC 971 AC 062 DLN indicates levy- then the TC will only post on the module intended for the levy payment. See IRM 5.11.7.3.3.5, Levy Payment Process.

5.11.7.3.3.3

(09-23-2016)

1. The FPLP notice process generates four notices by the IRS - a pre-levy Collection Due Process (CDP) notice, a FPLP final notice for Social Security beneficiaries, a FPLP (DETL) post-levy CDP notice, and a FPLP (FEDCON Levy) post-levy CDP notice. This subsection describes their systemic processes and IRM 5.11.7.3.4, FPLP Generated Notices and Appeal Rights, describes the notices in detail.

2. If a TC 971 AC 062 DLN match is posted, then Master File will systemically verify if aIntent to seize your assets and notice of your right to a hearing (CDP notice) had been issued by identifying an unreversed TC 971 AC 069 on the module. If a CDP notice was not issued, then Master File will systemically generate a FPLP CDP final notice, either the Computer Paragraph notice (CP) 90 (IMF) or 297 (BMF), prior to the levy and post a TC 971 AC 069 on the module. On the IMF, the appropriate SSN(s) will be displayed on the TC 971 AC 069 XREF field.

3. If the match identifies a Social Security benefit payment, and an unreversed TC 971 AC 069 had been posted for at least ten cycles (weeks), then prior to the levy, Master File will systemically generate an additional final notice to the Social Security beneficiaries, either CP 91 (IMF) or 298 (BMF), Intent to seize up to 15% of your Social Security benefits and post a TC 971 AC 169 on the module. The TC 971 AC 169 will display the TIN of the individual that matched with the Social Security payment.

4. The FPLP may issue systemic CDP notices after a DETL or FEDCON levy - known as post-levy CDP notices:

   • CP 297A, Notice of seizure and notice of your right to a hearing, is issued after a FPLP DETL.

   • CP 90C (or 297C),Notice of seizure and notice of your right to a hearing, is issued after a FPLP FEDCON levy.

5. Another taxpayer notice is issued by BFS when a Federal payment is levied. See IRM 5.11.7.3.3.5, Levy Payment Process, below.

5.11.7.3.3.4

(09-23-2016)

1. The FPLP will transmit (or "serve" ) a levy to BFS in the following situations.

2. FPLP Levy (Pre-levy CDP notice issued) - TC 971 AC 662

   • For federal payments other than Social Security, a levy will be transmitted to BFS at least ten (10) weeks from when Collection Due Process (CDP) CP 90 or 297,Intent to seize your assets and notice of your right to a hearing, or after any other CDP notice, such as the ACS LT 11 or field collection L1058 was issued (indicated by the unreversed TC 971 AC 069 posting cycle) and a CDP hearing was not requested. A FPLP levy TC 971 AC 662 will post on the module with either of the literals SAL, OTH, RRB displayed in the Miscellaneous Field and TIN in the XREF TIN field. (See Exhibit 5.11.7-2, Table of Federal Payments Subject to FPLP, for the levy code literal meanings.)

   • For Social Security payments matched, a FPLP levy will be transmitted to BFS at least eight (8) weeks but no more than twenty-six (26) weeks from when the CP 91 or 298, Intent to seize up to 15% of your Social Security benefits, was issued (indicated by the unreversed TC 971 AC 169 posting cycle). A FPLP levy TC 971 AC 662 will post on the module with the literal SSA displayed in the Miscellaneous Field and TIN in the XREF TIN field.

3. FPLP Disqualified Employment Tax Levy (DETL) (Post-levy CDP issued) - TC 971 AC 762:For federal payments other than Social Security or RRB benefit payments, a FPLP DETL levy may also be transmitted to BFS on qualified BMF employment tax modules with MFT 01, 10, 11, 14 and 16. A TC 971 AC 762 will post on the module, which will generate a post-levy CDP notice CP 297A and post a TC 971 AC 069. The taxpayer is provided their CDP appeal rights after the levy. See IRM 5.11.7.3.3.3, FPLP Notice Process (TC 971 AC 069 or AC 169).

4. FPLP Federal Contractor Levy (FEDCON) (Post-levy CDP issued) - TC 971 AC 677:For federal payments other than Social Security or RRB benefit payments, a FPLP FEDCON levy may be issued to BFS on all BMF tax modules and IMF tax modules (excluding filing status 2, married filing joint modules) if the entity is identified as a Federal contractor with an unreversed TC 971 AC 647 posted on the entity. A TC 971 AC 677 will post on the module with the literals "SAL, OTH" displayed in the Miscellaneous Field. This will generate a post-levy CDP notice CP 90C (or 297C) and post a TC 971 AC 069. The taxpayer is provided their CDP appeal rights after the levy. See IRM 5.11.7.3.3.3, FPLP Notice Process (TC 971 AC 069 or AC 169).

5. Depending on a tax module’s levy qualifications, a single tax module could have any of the levy action codes at various times, particularly if the module goes in and out of the FPLP; or a taxpayer’s multiple modules may each have different levy codes occurring at the same time.

6. The FPLP DETL (TC 971 AC 762) and FEDCON (TC 971 AC 677) levy processes occur after the issuance of a CP 504 on DETL modules. The issuance of the CP 504 meets the 30-day pre-levy requirement of IRC 6331(d). Also, if a tax module qualifies for both a DETL and FEDCON levy during the same cycle, then the DETL (TC 971 AC 762) will be selected first.

7. For joint income tax and sole proprietor tax liabilities, the FPLP levy cannot be issued only on one TIN of these modules. All TINs in the tax modules or entity will be levied for their appropriate matched payments. The same process will occur when releasing a FPLP levy on these particular modules. See IRM 5.11.7.3.6, Blocking or Releasing FPLP Levy.

8. For taxpayers who have multiple tax periods in either the IMF and/or BMF, the levy should only subject their federal payment against one tax module at a time. That taxpayer's payment will not be levied more than the appropriate FPLP levy percentage to pay more than one tax module at a time, regardless if the taxpayer's TIN is the primary, secondary and/or XREF TIN on any tax module.

9. If the FPLP levy is released, a TC 972 AC 060 will display to indicate the account is removed from the FPLP. A TC 972 AC 662/762/677 will not display.

5.11.7.3.3.5

(07-01-2022)

1. BFS has to process the various types of federal payment files within its processing cycles in order to meet the various payment or disbursement dates. The levy must be processed by the cutoff date for it to attach the payment by the payment date. The levy payment is then transmitted to the IRS and posted on the account on the taxpayer's payment date.

   FEDERAL PAYMENT	PAYMENT DATE	PROCESSING CYCLE CUTOFF DATE
   OPM (federal retirement income)	1st business date of each month	2 weeks before payment date
   SSA (OASDI) benefits	3rd business date of each month; 2nd, 3rd & 4th Wednesday of each month	6 business days before the payment date
   RRB benefits (retirement annuity except Tier 2)	1st business date of each month	5 business days before the payment date
   Federal employee salaries	Biweekly	2 weeks before payment date
   Military retirement payments	1st business date of each month	2 weeks before the payment date
   Defense and civilian agency contractor/vendor/supplier payments; Federal employee travel payments; "Miscellaneous" payments; CMS Medicare provider payments;	Daily	Cutoff dates vary; payments may be processed up to 30 days prior to payment date depending on invoice terms

2. BFS lets IRS know that the levy is being processed against a federal payment by a TC 971 AC 062, with its DLN indicating a levy payment processed (or "1" in the 13th DLN position) for that module. See Exhibit 5.11.7-5, TC 971 AC 062 (DLN) and Miscellaneous Field Format, for additional specific payment agency information .

3. The payment will post on the payment date with a TC 670 DPC 18 (payment from the primary TIN) and/or DPC 19 (payment from the secondary or XREF TIN) when BFS transmits the payment to the IRS through the Electronic Federal Tax Payment System (EFTPS).

4. Most of the FPLP levy payments will be 15% of the federal payment (or balance due, whichever is less). The exception will be on federal contractor or vendor payments, i.e. account receivables, invoice payments, from taxpayers doing business with the government, which will be 100% of the payment. See IRM 5.11.7.3.1.1, IRS/BFS Interagency Agreement - Federal Payments Subject to the FPLP.

5. BFS will then send a notice to the taxpayer indicating the federal payment has been reduced because of the IRS FPLP levy. See IRM 5.11.7.3.4.1, BFS Notice to Taxpayers, and Exhibit 5.11.7-7, Department of the Treasury, Bureau of the Fiscal Service Notice.

6. Inter-agency processing and timing constraints may delay some actions in this levy payment process:

   1. The TC 971 AC 062 may post before or after the TC 670. This is due to timing issues, because the TC 971 AC 062 is posted on a weekly basis and the TC 670s are posted on a daily basis.

   2. Although the TC 971 AC 062 DLN indicated that a levy payment was processed for the module, the federal payment may still not be received from BFS due to programming interface constraints between the time the levy was transmitted by the BFS 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.

7. BFS may systemically reverse a TC 670 DPC 18 or DPC 19 payment with TC 672 DPC 18 or DPC 19 when the federal payment agency determines the taxpayer was not entitled to the payment. See IRM 5.11.7.3.7, Returning FPLP Levy Proceeds.

5.11.7.3.4

(09-23-2016)

1. As discussed in the FPLP Notice Process section, there are four types of FPLP notices. Each notice is described in this subsection.

2. CP 90 (IMF) or 297 (BMF) -Intent to seize your assets and notice of your right to a hearing

   1. The CP 90/297 will be generated by the MF (displayed with TC 971 AC 069) and mailed certified with a return receipt (Postal Service (PS) Form 3811) through the IRS National Print Sites.

   2. The USPS return receipt will be systemically processed and the appropriate notice response TC 971 AC 066, 067, or 068 will be posted on the account.

   3. The 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 appropriate appeal process:

3. CP 91 (IMF) or 298 (BMF), Intent to seize up to 15% of your Social Security benefits

   1. CP 91/298 is generated by the MF (displayed with TC 971 AC 169) and mailed regular mail. CP 91/298 displays the balance due amounts and provides an additional 30 days after the CDP notice time frame to resolve the tax liability. These notices will also have the appropriate toll-free ACS contact phone number listed.

   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 SSN. These numbers are systemically provided by BFS from SSA during the FPLP matching process to identify the taxpayer's Social Security benefit information.

   3. The IMF CP 91 will be considered aged and a new one will be reissued again prior to the levy if the previous one is more than 26 cycles old. There is no CP 298 aging criterion for the BMF modules.

   4. The notice will inform taxpayers of their right to appeal. Taxpayers may exercise their appeal rights through the appropriate process:

   5. 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) on Social Security benefit payments.

4. CP 297A (BMF), Notice of seizure and notice of your right to a hearing

   1. The FPLP DETL process sends the CDP notice after the levy.

   2. These notices inform the taxpayer that a levy has already been issued, and they may still exercise their appeal right as discussed for the pre-levy CDP notice CP 90 (297).

   3. These notices are mailed certified, and display the ACS contact information.

5. CP 90C (IMF) or 297C (BMF),Notice of seizure and notice of your right to a hearing

   1. The FPLP FEDCON levy process sends the CDP notice after the levy.

   2. These notices inform the taxpayer that a levy has already been issued, and they may still exercise their appeal right as discussed for the pre-levy CDP notice CP 90 (297).

   3. These notices are mailed certified, and display the ACS contact information.

6. IRS employees are to process any appeals requests according to procedures in IRM 5.1.9, Field Collecting Procedures, Collection Appeal Rights or IRM 5.19.8, Liability Collection, Collection Appeal Rights.

7. Any time during the FPLP notice and levy process, taxpayers should be referred to the Taxpayer Advocate Service (TAS) for assistance if the taxpayer's issue cannot be resolved the same day and it meets TAS case criteria (See IRM 13.1.7 , Taxpayer Advocate Case Processing, TAS Case Criteria). The definition of ‘same day’ is within 24 hours. "Same day" cases include cases that can be completely resolved in 24 hours, as well as cases in which steps have been taken within 24 hours to begin resolving the taxpayer’s issue. Do not refer "same day" cases to TAS unless the taxpayer asks to be transferred to TAS and the case meets TAS criteria. Refer to IRM 13.1.7.6, Taxpayer Advocate Case Processing, TAS Case Criteria, Same Day Resolution by Operations. Use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS.

8. It may be necessary to block or release the case from the FPLP if a resolution is pending through the Appeals if no other FPLP exclusionary criteria exist. (IRM 5.11.7.3.6 Blocking or Releasing FPLP Levy)

5.11.7.3.4.1

(09-23-2016)

1. Once BFS processes the IRS database against its payment disbursement files, then BFS will transmit the proceeds to IRS and send the remaining disbursement to the taxpayer along with a notice indicating the federal payment has been levied. Exhibit 5.11.7-7, Department of the Treasury, Bureau of the Fiscal Service Notice, displays the following information on the notice:

   1. At the bottom of the notice: the type of Federal debt and the agency due the Federal debt; the type, date and amount of the Federal payment disbursement and the paying Federal agency; and then the amount levied.

   2. In the middle of the notice: an 18 digit Account Number, which consists of the TIN type (0 for SSN; 2 for EIN), TIN (the primary TIN of the tax period),MFT, and the tax period where the levied payment posted. The BFS notice also displays a TIN Number. Due to BFS programming, the TIN Number is displayed only in SSN format (NNN-NN-NNNN), but the TIN Number can either be an SSN or EIN. (Verify the TIN by researching the TIN found under Account Number.)

   3. The BFS 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 case is assigned to a local field collection office, then ACS should refer the taxpayer to the appropriate office. Taxpayer correspondence received at these addresses should be handled according to IRM 5.19.9.4, Liability Collection, Automated Levy programs, FPLP or forwarded to the appropriate office for resolution.

      SBSE, Tax Exempt and Government Entities (TEGE), Large Business and International (LB&I) taxpayers	Taxpayer Services taxpayers
      Internal Revenue Service Post Office Box 8208 Bensalem PA 19020–8208	Internal Revenue Service Post Office Box 219236 Stop 5050 P-4 Kansas City MO 64121–9236
      800-829-3903 or 267–941–1004 (International)	800-829-7650

   4. BFS 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).

5.11.7.3.5

(07-01-2022)

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. Revenue officers must seek managerial approval to block modules from being included in the FPLP. The approval request will be forwarded for managerial approval through ICS. In the event the approval request is made on a paper document, the paper document should reflect the manager's approval. See IRM 5.11.7.3.6, Blocking or Releasing FPLP Levy.

5.11.7.3.5.1

(09-23-2016)

1. Whenever the FPLP indicator is present on a module, revenue officers may decide to levy the federal payment source through the FPLP under IRC 6331(h) or through the traditional paper levy method using Form 668A or Form 668W under IRC 6331(a) or 6331(e). The FPLP will attach the applicable 15% or 100% of the payment continuously through BFS as the central or disbursing agent for the federal payment source. The paper levy method under 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, will levy the federal payment source directly and attach the maximum amount allowed under those statutes. The maximum amount of levy proceeds received from either levy method will depend on the type of federal payment expected. 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 BFS. 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 5.11.7.3.6, Blocking or Releasing FPLP Levy.

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. For example, a Form 668-A may be sent to a bank account, even if the taxpayer's federal payment is subject to the FPLP. If the Form 668-A or Form 668-W is served on a federal payment source, and the taxpayer is also in the FPLP, then there is a chance the FPLP may also levy the same federal 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. Status 60 is normally used for continuous levies or installment agreements. The FPLP excludes Status 60 modules. In order to close a case that has an active FPLP levy module, then consider the following:

   1. If a case has an active FPLP levy, and there is no cooperation or contact from the taxpayer, then determine if a paper levy under IRC 6331(a) or (e) is necessary and convert the FPLP levy to the paper levy, as discussed above, in order to close out the case through the continuous paper levy process.

   2. If a case has an active FPLP levy, with no further case action to be taken, and, if the taxpayer has agreed to the amount of the FPLP continuous levy, then determine if an approved installment agreement can be established on the case.

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.

5.11.7.3.6

(07-01-2022)

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.

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 BFS or the federal payment agency source.

3. As discussed in IRM 5.11.7.3.3.4 , both spouses' SSNs on joint income tax liabilities will be part of the FPLP, and both may be receiving federal payments that are being levied simultaneously. If a levy release is warranted on either of the spouses, then the FPLP will be released on both. The FPLP cannot levy only one or the other spouse's federal payment. Another levy tool, i.e. Form 668-W or Form 668-A, may need to be issued to attach the leviable spouse's federal payment. See IRM 5.11.7.3.5.1.

4. FPLP Exclusion Transaction Code: FPLP levies can only be released by posting a transaction code (TC) that would exclude the taxpayer from the FPLP as discussed in IRM 5.11.7.3.2.2. See Exhibit 5.11.7-3, FPLP Exclusion Criteria. Posting a FPLP exclusion TC will generate a TC 972 AC 060, which reverses the existing TC 971 AC 060, and releases the levy.

5. FPLP Block Transaction Code TC 971 AC 061: 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 that should not be levied. Posting the TC 971 AC 061 will either generate a TC 972 AC 060 (which reverses the existing TC 971 AC 060) or blocks the module from the FPLP and not allow a TC 971 AC 060 to post. There is no need to input both a FPLP exclusion TC and TC 971 AC 061. TC 971 AC 061 can be input via ICS or Form 4844. See IRM 5.11.7.3.3.1, Case and Module Selection Process (TC 971 AC 060), for block indicators that should display on the module.

6. Any manually input TC 971 AC 061 will expire after 52 cycles. To keep the module blocked, another TC 971 AC 061 will need to be re-input and posted prior to the expiration of the previous TC 971 AC 061.

7. 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 on the account before the next payment is processed by BFS to prevent the levy on the next payment. BFS has different processing cutoff dates for each payment type:

   FEDERAL PAYMENT	PAYMENT DATE	PROCESSING CUT OFF DATE
   OPM (Federal retirement income) and Military Retirement Payments	1st business date of each month	2 weeks before payment date
   SSA (OASDI) benefits	3rd business date of each month; 2nd, 3rd & 4th Wednesday of each month	6 business days before the payment date
   RRB benefits (retirement annuity except Tier 2)	1st business date of each month	5 business days before the payment date
   Federal employee salaries	Biweekly	14 days before payment date
   Defense and civilian agency contractor/vendor/supplier payments; Federal employee travel payments; "Miscellaneous" payments; CMS Medicare provider payments	Daily	Cutoff dates vary; payments may be processed up to 30 days prior to payment date

8. The following eight (8) examples in the next few sections describe when the automated levy release will take effect based on the payment processing cutoff chart described above; when it may be necessary to request a FPLP coordinator to 'rescind' the levy (as discussed in the next subsection) so that the next scheduled payment for the taxpayer is not levied; and when it may be necessary to determine if the levy payment should be returned, based on timing.

9. If the processing cutoff date is missed, then the automated levy release will be effective for the payments thereafter. See IRM 5.11.7.3.7, Returning FPLP Levy Proceeds, to determine if the levied payment may be returned via the manual refund process due to these timing issues.

10. If the TC is not posted by the processing cutoff date or cannot be posted because of the Master File 'dead cycles' during the first two or three cycles of each year, and to avoid the next scheduled federal payment from being levied, then the FPLP levy may need to be released by the FPLP coordinator as discussed in the next section.

5.11.7.3.6.1

(09-23-2016)

1. For cases in Status 26, selected Collection Advisory office will have a designated FPLP coordinator who will have real-time secured web access to the BFS database system in order to temporarily release or "rescind" a levy during certain situations discussed below. On the IRS intranet Servicewide Electronic Research Program (SERP) page, under "Who/Where" , the FPLP coordinators can be identified based on taxpayer’s geographical location.

2. As discussed in the previous subsection, a FPLP levy is released by posting a FPLP exclusion TC (i.e. Status 60) or FPLP block (TC 971 AC 061) on the account. Those TCs will generate the TC 972 AC 060 indicating the FPLP levy is released. If the TC 972 AC 060 has not yet posted to release the levy and the taxpayer's next payment is imminent, then to avoid that payment from being levied, a levy release request to the FPLP coordinator may be necessary. (See IRM 5.11.7.3.6.2, FPLP Coordinator Duties.) The FPLP coordinator may be able to 'rescind' the levy through the BFS database system in time to save the next payment from being levied but only if there is still time to input the 'rescind' action prior to the payment processing cutoff chart discussed above.The "rescind" input must be completed before the payment cutoff date as discussed above in IRM 5.11.7.3.6 (7). Most of the time, the FPLP coordinator 'rescind' action can be done only on payments paid 'monthly', such as the OPM retirement payments or SSA benefit payments. Since federal salaries and contractor/vendor payments are paid more often and their processing cutoff dates shortened or unknown, then the systemic levy release will usually not be effective until after 2 cycled pay dates.

3. The levy "rescind" on the BFS database is temporary only, and effective at the time of the input until the next time the BFS database is updated with taxpayer information from the Master File, which is usually every week. The FPLP coordinator's "rescind" input in the BFS database will not upload to IDRS or MF.

4. To release a FPLP levy through the FPLP coordinator'srescind input in the above situations, prepare Form 4844 and send 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

5. Certain case situations that may warrant a FPLP coordinator release are, but not limited to:

   • open bankruptcy situations: Insolvency personnel should refer to IRM 5.9.4.5.4, Common Bankruptcy Issues, Federal Payment Levy Program. Under certain conditions, the FPLP coordinator may facilitate the release from the BFS 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,

   • wrongful or erroneous levies,

   • economic hardship determinations as defined under 26 CFR 301.6343-1(b)(4),

   • Another situation is based on a Treasury and Defense Department (DoD) 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, inform the taxpayer to contact their DoD contracting officer (CO).The DoD CO should have pre-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. When DoD informs FPLP headquarters, FPLP headquarters will then contact the FPLP coordinator, based on the taxpayer location. The coordinator will initiate expedited handling of the case and direct contact from IRS to that particular contractor/taxpayer. See IRM 5.11.7.3.6.3, Additional FPLP Coordinator Duties for Certain Expedited Case Handling. 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. 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 due to 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.

5.11.7.3.6.2

(09-23-2016)

1. As indicated above, selected Collection Advisory offices have a designated FPLP coordinator who will have on-line and real-time access to the BFS database system in order to temporarily release or "rescind" a levy during certain situations.

2. FPLP coordinators will have and should maintain their computer web access to the BFS website, known as the Treasury Offset Program (TOP) taxpayer database, in order to input (aka "rescind" ) emergency or stop-gap FPLP levy release requests. On the IRS intranet Servicewide Electronic Research Program (SERP) page, under "Who/Where" , the appropriate FPLP coordinator can be identified for each case.

3. The FPLP coordinators are not required to input the TC 971 AC 061 block/release or any other TC excluding the account from the FPLP. It is the responsibility of the operational/functional (i.e. Collection Field, TAS, TAC) employee resolving the case to input or forward it to the appropriate unit, i.e. Case Processing.

4. Form 4844 will serve as the input document for the FPLP coordinator. The coordinator will sign onto the BFS system and rescind all the modules from the levy.

5. Requests for FPLP levy rescinds must be input within one (1) workday from receipt.

6. The original Form 4844 will be annotated with the date and time that the release was input into the BFS database and maintained in a file for 30 days.

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

8. 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.

9. 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 5.11.7.3.6.3, Additional FPLP Coordinator Duties for Certain Expedited Case Handling.

5.11.7.3.6.3

(08-12-2011)

1. FPLP headquarters will initiate these 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 NFOI 148, Lien Priority Other, note the case history and initiate a mandatory outgoing Advisory Courtesy Investigation to the collection field function (or to the assigned revenue officer of the case), in order to make contact with the taxpayer. The group manager assigning the investigation 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. The following subsections outline the rare situations and procedures that require expedited case handling through the FPLP coordinator.

5.11.7.3.6.3.1

(09-23-2016)

1. Currently, expedited FPLP case handling has been established for national security reasons requested by the Department of Defense (DoD). See IRM 5.11.7.3.6.1, Requesting Assistance from the FPLP Coordinator on Certain Emergency Levy Release Situations. The issuance of the mandatory NFOI should only be the case when standard operating procedures do not apply for levy relief outlined in IRM 5.11.2.3. The mandatory NFOI 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.

2. 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 NFOI 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.

3. For the return of levied proceeds, if applicable, IRS FPLP headquarters will request BFS 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 NFOI 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 BFS back to the taxpayer’s financial account to which it would have originally been deposited - usually within 48 hours from the time BFS receives the request from the IRS.

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

5.11.7.3.6.3.2

(08-12-2011)

1. Besides national security, the IRS has also agreed to review case situations requested by the DoD where the FPLP levy would jeopardize the performance of a Defense contract and produce a significant additional cost to the Federal government.

2. FPLP headquarters will contact the local FPLP coordinator to facilitate the issuance of an outgoing 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 5.11.7.3.6, 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. In order 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

3. 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 is warranted, then process through the standard manual refund procedures within IRS. See IRM 5.11.7.3.7, Returning FPLP Levy Proceeds.

4. 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.

5.11.7.3.6.4

(09-23-2016)

1. Revenue officers may manually reverse any 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 in the TC 972 AC 061 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 5.11.7.3.2, FPLP Selection Criteria. See IRM 5.11.1.3.1, Pre-Levy Considerations, if appropriate.

2. There are also systemic criteria that determine when the FPLP TC 971 AC 061 block is reversed with TC 972 AC 061:

   1. Expiration of manually input TC 971 AC 061 block: Any manual input of TC 971 AC 061 will systemically expire 52 cycles later. The DLN in TC 972 AC 061 will display a series of "8" s.

   2. Status update change: When a FPLP module that has either a systemic or manual TC 971 AC 061, moves into a non-FPLP status, i.e. Status 58 or Status 72, it is systemically reversed with TC 972 AC 061. The DLN in the TC 972 AC 061 will display a series of 9s.

   3. Certain Status 22 (ACS) inventories, including most FERDI cases. See IRM 5.19.9.4.2.4. The DLN in the TC 972 AC 061 will display a random series of numbers.

5.11.7.3.7

(07-01-2022)

1. FPLP payments are systemically identified with a TC 670 DPC 18 or DPC 19.

2. There may be situations where a levied payment may be returned. Returning the levied proceeds must be approved by the delegating official authorized to return levy proceeds as directed under Delegation Order 5-3 and in accordance with IRM 5.11.2.4, Returning Levied Property to the Taxpayer. A taxpayer must request the return of the proceeds within a statutory time period. If the date of levy payment was on or before March 22, 2017, the request must be made before the expiration of 9 months starting from the date of such levy payment. If the date of levy payment was on or after March 23, 2017, the request must be made before the expiration of 2 years starting from the date of such levy payment. The IRS can return levy proceeds without a request from the taxpayer if the statutory time period for requesting return of the levy proceeds has not expired. FPLP levy payment dates should be verified before returning the payment. Process the return of FPLP levy proceeds using the manual refund procedures found in IRM 5.1.12.20, Cases Requiring Special Handling, Manual Refund. For cases involving Identity Theft, refer to IRM 5.1.28.4.1.1 , Returning Levied Property in Cases of Identity Theft.

3. In situations due to timing issues,where a levy has been released and the levied payment has already been processed by BFS, but not yet transmitted to the IRS by the pay date, the levied payment may be returned to the taxpayer in accordance with IRM 5.11.2.4. There may be other situations, as discussed in IRM 5.11.2.4, where the levied proceeds that had already been received prior to the levy release may be returned to the taxpayer and a manual refund processed.

4. In situations where a paper levy and FPLP levy attached to the same federal payment (known as a ‘double levy’) and proceeds from both levies are paid to the IRS, the proceeds from the improper levy may be returned in accordance with IRM 5.11.2.4 because the incorrect levy was not issued in accordance with administrative procedures. The incorrect levy should also be released.

5. In the above situations, if the tax module is or will be full paid or satisfied from the delayed posting of the payment and/or from other credits regardless if the federal payment is subsequently returned, then it is necessary to ensure the applicable Notice of Federal Tax Lien is manually released even while the account adjustments are pending. See IRM 5.12.3.2 regarding the necessity of a manual lien release. Employees of functions with access to the Automated Lien System (ALS) will input lien release requests in these situations. For those functions that do not have access to ALS, determine the Centralized Case Processing Lien Units (CCP-LU) contact on the IRS intranet by going to:

   • IRS Intranet Homepage

   • SERP

   • Who/Where

   • Case Processing Lien Units

5.11.7.4

(08-24-2007)

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.

5.11.7.5

(09-23-2016)

1. The Municipal Tax Levy Program (MTLP) is the newest of the four automated levy programs. MTLP matches a Master File database of delinquent taxpayers eligible to be levied against a database of local income tax refunds for each municipality participating in MTLP.

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

Exhibit 5.11.7-1

Federal Employee Salary Paying Agencies: NFC

Federal Employee Salary Paying Agencies: NBC

Federal Employee Salary Paying Agencies: GSA

Federal Employee Salary Paying Agencies: DFAS

Exhibit 5.11.7-2

This table is a matrix that displays what types of federal payments are levied in the FPLP; what levy type code is displayed under Miscellaneous Field (TC 971 AC 662, 677 or 762); what account TINs are matched against the payments; and the levy percentage of the payment. For example, the SSA payments are levied for 15% against the IMF primary or secondary SSN, BMF (sole prop) XREF SSN, and BMF primary SSN. IRM 5.11.7.3.1.1

Exhibit 5.11.7-3

All balance due modules of an entity that has one or more of the following codes in any balance due module or in the entity, will be systemically reversed out of or excluded from the FPLP:

A balance duemodule that has one of the following, will be systemically reversed out of or excluded from the FPLP:

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

Exhibit 5.11.7-4

The following IRP income documents are calculated to determine the LIF estimated income:

Exhibit 5.11.7-5

IRM 5.11.7.3.3.2, Matching (TC 971 AC 062)

FPLP Document Locator Number Positions

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

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

• 01 – Social Security benefit payment

• 02 – Federal retirement income

• 03 – Federal contractor/vendor/supplier/provider payment (IMF or BMF entities)

• 03 - Miscellaneous Payments. IRM 5.11.7.3.1.1 (IMF or BMF entities)

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

• 04 – Federal employee salary payment

• 05 - Railroad Retirement benefit payment

The value for position 13 identifies whether BFS 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 BFS matched (position 13 = 0) records with OPM (positions 7, 8, 9 & 10) on an OPM payment (positions 11, 12 & 13).

Other examples:

Miscellaneous Field:

The miscellaneous field literal may or may not display a 3 character suboffice code to the salary paying agency (SPA). Exhibit 5.11.7-1.

XREF Field:

The XREF Field literal will display the TIN (SSN or EIN) of the matched individual or entity.

Exhibit 5.11.7-6

Exhibit 5.11.7-7

This one-page BFS notice explains that the taxpayer's Federal payment was reduced by BFS due to levy action by the IRS FPLP, and that amount was applied to the taxpayer’s debt. It lists the IRS as the agency collecting the debt through the FPLP, and the purpose as tax levy. It displays the taxpayer’s TIN, TOP trace number, account number (TIN type/TIN/MFT/Tax Period), amount collected, and creditor agency codes. It also displays the payee name, total payment before reduction, amount of reduction, payment date, payment type, and paying agency. The notice advises the taxpayer to contact the IRS if it is believed that the payment was reduced in error or if there are questions about the debt. It lists the IRS address and phone number for resolution, and advises that BFS cannot resolve issues regarding the debt. The notice advises the taxpayer that the IRS has previously sent the taxpayer a notice advising of the debt, the taxpayer’s rights, and the IRS’ intent to collect via levy. It advises that the levied funds will be sent to the IRS to be applied to the debt, and that it may take several weeks for IRS to receive the funds from BFS.

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