Effective Dates: 02/13/1998 - Present Previous | Next

TN 9 (02-98)

GN 02410.115 Levies Against Attorneys' Fees

A. POLICY - GENERAL

In addition to levying against Social Security benefits due a beneficiary, IRS may levy against past due benefits held by SSA in anticipation of direct payment as a fee to an attorney when that attorney owes Federal taxes.

B. POLICY - IDENTIFYING THE FEE

Although the attorney will be identified as the taxpayer on the Notice of Levy, for SSA to process a levy against an attorney's fee, IRS must also identify the SSN of the beneficiary from whom the attorney's fee is being withheld.

In some cases, an attorney being levied against may have fees pending in several cases. If the IRS levies against more than one fee, it must submit the Notice of Levy identifying the attorney as the taxpayer plus separate attachments showing the name and SSN of each beneficiary the attorney represented.

C. PROCEDURE

1. Beneficiary Identified

If the beneficiary is identified, proceed as follows:

  1. a. 

    Make as many copies of the levy as there are attachments;

  2. b. 

    Staple a copy to each attachment;

  3. c. 

    Associate each set with the claims folder involved for processing.

2. Beneficiary Not Identified

If the beneficiary is not identified, return the Notice of Levy to the issuing IRS office with an explanation that SSA cannot identify the property being levied against.

3. Levy Received Before Fee Approved

If the Levy is received before the fee is approved:

  1. a. 

    Diary for 30 days from the date the Notice of Levy is received in the PC. Flag the case so the fee is not paid without the levy being applied.

  2. b. 

    If the diary expires and no HA-L530-U5 (Authorization to Charge and Receive a Fee) has been received, return the levy form to IRS with an explanation that SSA is not in possession of any property (the fee) to which the levy can apply.

4. Fee Approved

If the HA-L530-U5 is received before the diary expires, the levy will apply only against the fee amount finally approved. In this case:

  • •

    Do not release the fee. To allow time for the fee amount to be protested, diary the case for 45 days from the date the HA-L530-U5 was signed.

  • •

    When the diary expires and the fee amount is finally approved, follow the procedure in GN 02410.105 and GN 02410.110, as appropriate.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202410115
GN 02410.115 - Levies Against Attorneys' Fees - 02/13/1998
Batch run: 08/05/2014
Rev:02/13/1998