TN 30 (11-10)
GN 02410.110 Federal Payment Levy Program (FPLP) and Tax Levy Database System (TAXY)
A. Procedure for Federal Payment Levy Program (FPLP)
1. Federal Payment Levy Program (FPLP)
As a result of the new Federal Payment Levy Program (FPLP) described in GN 02410.305, IRS adopted the policy of not issuing paper levies, Form 668W, on the same person who is subject to FPLP. However, on occasion, IRS is inadvertently using both processes.
2. Paper levy received and FPLP in place
When a new IRS form 668W, Notice of Levy on Wages, Salary and Other Income, is received in the Payment Center (PC), action is not necessary to see if an automated levy is already in place under FPLP. The action should be input to the Tax levy Database System (TAXY). The TAXY input of the levy will automatically notify Treasury to terminate FPLP deduction from the taxpayer’s SSA benefits.
B. Procedure for Tax Levy Data Base System (TAXY)
1. Making payment
The new Internal Revenue Service Tax Levy Data Base System (TAXY) is a national online system that SSA uses to automate the processing of IRS issued levies for Title II cases when a Form 668W, Notice of Levy, or 668D, Release of Levy, is received in the PC and the beneficiary is not under FPLP.
NOTE: Only Processing Centers (PCs) are able to input information into TAXY; however, PCs, field offices (FOs) and Teleservice Centers (TSCs) are able to query the system to verify that payments have been released to IRS.
PCs will use TAXY whenever the paper Form 668W or Form 668D is received from IRS.
Follow SM 00833.000 for TAXY processing instructions.
See GN 02410.105 for Levy Exemptions
Input a special message to the MBR, per MSOM T2PE 007.008 through MSOM T2PE 007.009, as follows:
EFF (Levy effective date)
$$$$$.¢¢ (Total Amount of Levy)
“QUESTION CLAIMS OF NON-RECEIPT”
2. Notification of Levy
When the levy is implemented, TAXY will issue appropriate notice to the levied beneficiary and IRS.
3. Documentation of levy
Fax the TAXY generated exemption statement notice, which has been completed by the beneficiary, into NDRed and forward a copy to IRS for their records.
4. Stopping levy
Withhold until the amount shown on a notice of release of levy is withheld. If no amount is specified on the Release, stop withholding immediately. When a form 668D is received from IRS, access TAXY and take the steps outlined in SM 00833.080 (How to Modify/ Terminate a Tax Levy Cases) to terminate the ongoing tax levy.
5. Notification of release of levy
When the levy ceases, TAXY issues appropriate notice to the levied beneficiary and IRS