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CMS-1403-FC
The Financial Management Service (FMS), a bureau of
the Department of Treasury, initiated the Federal Payment
Levy Program (FPLP) portion of the Continuous Levy Program
in July 2000 to recover delinquent Federal tax debts. The
FPLP is a program whereby delinquent Federal income tax
debts are collected by levying non-tax payments, as
authorized by the Taxpayer Relief Act of 1997
(Pub. L. 105-34). The FPLP includes vendor and Social
Security benefit payments, and Medicare payments. It is
accomplished through a process of matching delinquent
debtor data with payment record data. This automated
collection of debt at the time of payment occurs after the
delinquent taxpayer has been afforded due process, in
accordance with the Internal Revenue Code.
In July 2000, the IRS in conjunction with the
Department of Treasury’s FMS started the FPLP which is
authorized by section 6331(h) of the Internal Revenue Code
as prescribed by section 1024 of the Taxpayer Relief Act of
1997. Through this program, the IRS can collect overdue
taxes through a continuous levy on certain Federal payments
disbursed by FMS; it generally allows Medicare to match a
claim to a delinquent taxpayer, offset the payment, and
recover a percentage of the amount due.
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