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Tax Relief: Automated Levy & Manual Levy - What’s the Difference?

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Automated Tax Levy (15%)

 

The IRS may take an automatic 15% from social security benefits every month.  If the IRS can correspond the government’s Financial Management Service with its delinquent taxes records to show the right to social security it can go ahead.  Once an association is proven the tax payer is provided with an IRS notice of the beginning of a 15% levy on social security.  A notice of confirmation is supplied by the Financial Management Service when the levy comes into practice.

 

The most commonly used of IRS collection utensils is the automated social security tax levy.  The IRS gets an outcome that is simple, proven and immediate.  For the tax payer it is responsible for the greatest adversity.  Automated levies on social security benefits resulted in 1.74 million payments to the IRS in 2007.  It was anticipated 86 % of the levies came from circumstances where social security was the main or sole income for the tax payer.

 

Manual Tax Levy (100%)

 

The IRS can take more than 15% of the social security to a tax payer.  A manual tax levy can keep on taking all social security benefits according to the Internal Revenue Code section 6331 (a).  The code allows levy on salary, wages and other income plus social security.  The automatic levy of 15 % is an extra to the manual levy.

 

It is when there is no cooperation from a tax payer that a manual tax levy is chosen.  This levy must be allocated to an IRS Revenue Officer.  The automatic levy is a procedure that eliminates the use of paperwork.

 

Exemptions on a Manual Tax Levy

 

A tax payer may claim an exception against the manual levy even if the IRS can levy a maximum of 100% of social security.  An exception allows the tax payer to get a minimum of a social security payment and thereby bringing down all or some of the manual tax levy.  $779.17 can be claimed from a manual tax levy by a single tax payer receiving social security every month.  This results in the IRS getting amounts higher than $779.17.  The IRS has adopted a more lenient stance in situations of financial privation.  It must be proved that automated and manual levies don’t allow for living expenses.
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