Discussion:Payments subject to levy
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Discussion Forum Index --> Advanced Tax Questions --> Payments subject to levy
Discussion Forum Index --> Tax Questions --> Payments subject to levy
| 3 November 2009 | |
| I'm curious, are per diem payments to employees generally subject to levy? Much (but not all) of the standard levy language was crossed out by agent and attached letter indicated that taxpayer is not entitled to exemptions under section 6334(a)(9). Still, per diem payments are not specifically addressed in writing. Agent's verbal position is per diem payments are "other income or debt owed" to the taxpayer so they are subject to levy. Hmmm. | |
| 3 November 2009 | |
| First, with all due respect, you appear to be missing the central point. What is the reason behind the Revenue Officer not allowing any standard levy exemption? That will usually happen when the taxpayer has more than one job and the exemption is already being allowed through another employer or a spouse is employed and has the full exemption. Second, it concerns me that you have said "agent" twice which tells me that you have very little experience with IRS collection issues. Third, how did the case get to the point that a Revenue Officer is levying wages at all and what are you and your client able to do to get the levy released or decreased? | |
Mikex2e7n5 (talk|edits) said: | 3 November 2009 |
| If the levy is not honored, the business and the person responsible for not honoring the levy is subject to an assessment of the amounts equal to the amount that should have been withheld PLUS 50% of that amount. | |
| 3 November 2009 | |
| I apologize for not being clear. It is true, I am not very familiar with IRS collection issues. Taxpayer is employee not client. I have received a notice of levy of wages from a Revenue Officer, not agent. We pay our employees per diem amounts when they travel instead of directly reimbursing their expenses. Revenue officer indicated per diem payments were subject to levy since they are not specifically exempted. Employee disagrees. I read section 6331, 6334 and couldn't get clarity. | |
Mikex2e7n5 (talk|edits) said: | 3 November 2009 |
| The employee should appeal the levy then. He should contact the local taxpayer advocate. You on the other had better honor the levy until you hear differently from IRS (not the employee) | |
Mikex2e7n5 (talk|edits) said: | 3 November 2009 |
| or your employee should talk to one of the professionals on ths board who deals with irs for a living | |
| 3 November 2009 | |
| Good advice. Then I just have to get employee to accept/act on it! | |
| 3 November 2009 | |
| Thanks for the clarification LF321. I would ask your employee if his/her spouse has income which is not subject to levy. I also have a comment for Mikex...no one suggested in any way, shape or form that the levy should be disregarded so your comment is rather bizarre. | |
Mikex2e7n5 (talk|edits) said: | 4 November 2009 |
| Sometimes I get a bit bizarre | |
| 4 November 2009 | |
| If that was the worst someone called me, I'd be in great shape. | |
| 4 November 2009 | |
| Quibbling about what is or is not subject to levy begs the question: What is your employee doing to resolve his problem. He needs to pull his head out from where the sun don't shine and take care of the problem. | |
| 4 November 2009 | |
| A non accountable plan is subject to all income taxes.
If you paid the exact reimbursement, you have an accountable plan, and would not be subject to p/r taxes. | |
WIBadgerCPA (talk|edits) said: | 4 November 2009 |
| I partially agree with Barb, even though it has nothing to do with this question. | |
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