Source: http://www.patriotnetwork.info/liens_and_levies.htm
Timestamp: 2014-07-30 15:07:52
Document Index: 640478219

Matched Legal Cases: ['§6320', '§6330', '§7433', 'art 5', 'art 5', 'art 5']

Removing Liens and Levies!
Removing IRS Liens and Levies Removing Liens and Levies
Removing IRS Liens and Levies [click here!] Your Employer Can Refuse a Tax
Removing Levy on Social Security
DOJ Explains Levy on SS Checks
Removing Social Security Levies
Social Security Hardship Letter
Letters for Removing TOP Levies Excessive TOP Letter Another Letter on excessive
TOP Can my Social Security be levied?
Peymon's Article on Witdrawing
A Memo on Self-released Liens
Regulation on Re-Filing a Tax Lien 301.6323
26 U.S.C. Subtitle
F, Chapter 64, Subchapter C: Liens for Taxes
IRS Liens in Drye and Craft Cases Levies
Removing Wage Levy (Skipped
CDPH) 26 U.S.C. �6330: Notice
and Opportunity for Hearing Prior to Levy
F, Chapter 64, Subchapter D, Part II: Levy
Collection Enforcement by Levy Action Alter-Ego Nominee Liens
Release of Lien Letter: Alter-Ego
Request for discharge of lien and CDPH
Court Cases on Liens
Griswald Case on Release of Lien
Assistance on Complex Tax Issues by IRS
Seizure of Property for Collection of Taxes:
F, Chapter 64, Subchapter D
USAM � 9-111.000
Judicial Approval Required for Seizure of Principal
REMOVING LIENS AND LEVIES Clarkson's Famous Report
DISCLAIMER: This is a news article for informational purposes only. Our recommendation
is that everyone pay the taxes they owe.
So, the stinking, rotten IRS has placed a tax lien on your real estate, or a levy
on your paycheck. What can you do? Well, you have options. You can do one of several
things. You need to read and study, then pick the best route for you. Order the
materials you need from the book list. The tax collectors have many tricks, but
they can be beaten with knowledge and determination.
1. What is a tax lien? A tax lien is a lien like a mortgage lien or a mechanic's
lien, which is an encumbrance against real property that runs with the land, i.e.
whoever purchases the land also takes the indebtedness. A lien is a claim or hold
upon the real property of another as security for a debt that can he satisfied by
the property or the sale of it. A lien attaches to all real estate of the debtor
(even property acquired after the date filed) in the county where the lien was filed.
A lien holder can foreclose on the property, i.e. put it up for auction and sale
2. What is a federal tax lien? It is a lien against your real estate located in
the county in whose courthouse the lien is filed. Regardless of the title or wording
of the name of the IRS form used, once it is filed by the clerk of court, it is
binding or notice to the world, for six to ten years. Tax liens only apply to real
property. If you have none in the county where filed, the lien has no effect unless
you buy or inherit some real property in that county. The lien does not cross county
Do not have false hopes due to the misleading words on the federal tax lien form.
Once it is received by the clerk of court, it is accepted by the legal community.
Also, a federal lien supersedes state law, so you have no protection, homestead
3. When a lien is filed against your house, nobody comes out there and places a
large piece of paper across the roof of your home, hut rather a notice is recorded
at the courthouse which warns all future buyers and lenders that a lien holder has
a prior claim against the real estate owned by you in that county. Normally, prospective
buyers of the property will not buy the property unless you pay off the lien and
have it removed. Or, the buyer would pay you less than the full price and use the
money due you to pay the lien holder. Lenders will not lend money on real estate
when notified of a prior lien unless arrangements are made in advance to satisfy
the prior encumbrances.
4. Liens and mortgages have a priority system whereby whichever one is filed first
has the first claim against the real property and whoever is recorded second can
only collect what is left over. Real estate law is explained well in Clarkson's
Tax Collector's Manual However, the buyer or lender does not have to satisfy the lien. A family member
could accept the house with all the liens on it. Deeds can still he drawn and filed
as property can be sold or transferred with lien on record. Some purchasers will
buy land with lien on record.
However, the lien just sits there at the courthouse until it expires unless the
tax thieves attempt to foreclose, i.e. sell your property at auction. However, if
someone wishes to purchase your home, they could mandate satisfaction of the lien
prior to purchase. Yet, if no auction or purchase takes place after six to ten years,
the tax lien expires by the statute of limitations unless the tax collector renews
the lien. However, such liens are rarely renewed. In 1990, the law was changed to
allow the IRS ten years to renew a tax lien. Other liens such as mortgages, mechanic's
liens etc. expire at varying times. The statue of limitations can be tolled or extended
by several of your actions. However, this extension is not recorded in the deed
room and is generally ineffective.
5. The usual procedure of the Instant Robbery Squad is to allow small liens to expire
by the statute of limitations and to foreclose on the large ones. However, under
the new IRS procedures, the tax thieves are ignoring almost everybody and almost
all liens. Therefore, the best course of action today is to do nothing, unless the
local IRS agent acts serious. If you receive a Notice of Seizure, Foreclosure or
Auction, call Dr. Clarkson immediately.
6. Under the CDPH laws IRC §6320 and §6330, the Instant Robbery Squad
cannot foreclose on a lien or use enforcement methods while the CDPH is pending.
Therefore, always request your CDPH. You must do this timely and you must follow
7. Removing a lien from the greedy hospitals. You can do several things, depending
A. Fight Back! Do not allow a lien in first place. You can stop a lien and beat
an audit. See Clarkson video Audit Procedure 1: How to Handle the IRS (video $30,
audio $10).
People who file and do not pay are vulnerable to collection activity. We do not
recommend this. If you file and do not pay, protect yourself.
B. Do nothing and allow the statute of limitations to run. This is the best course,
especially for small liens, but this depends on circumstances. Call Dr. Clarkson.
C. Pay the lien off. This is the worst option. Do not do it unless it is absolutely
D. File a quiet title action. This works for a small number of people in certain
circumstances. This is not a panacea and does not work for everybody.
E. File a tax refund suit. This is what Dr. Clarkson recommends, but even so, it
only works for a few people. See below.
F. Deed the property to wife or children to protect yourself against greedy hospitals,
creditors, tax thieves and nursing homes. See our section on Elder Law. This will stop future liens in most but not all circumstances.
Deed to wife is ineffective in community property states (i.e. Western USA ) unless
you dissolve the community property status.
G. File bankruptcy. This works great, except for liens on real estate, which are
secured debts, which are not erased by bankruptcy. However, a Chapter 13 (wage earner
plan) or Chapter 7 Discharge can slow and temporarily halt a foreclosure auction.
H. Allow foreclosure. If all looks hopeless, or you want to move anyway, allow the
loan company to foreclose. You can stall and delay the mortgage for years and live
in the house without payments or rent. Put that money aside or buy silver rounds.
When you have to move after 2-3 years, take your savings and buy a new house. We
do not recommend this unless absolutely necessary.
Under the Taxpayer Bill of Rights, the IRS cannot foreclose unless the value of
the house is about 20% plus 10% greater than the mortgage, i.e. the forced - sale
value. Therefore, do not make mortgage payments and drive up the value of the home
mortgage which has priority over liens filed afterward. Unfortunately, under the
new regulations, few lenders will allow you to do this.
If the bank brings the foreclosure, the tax collector can collect nothing, depending
on the amount of your home equity. It is true that you can delay sale and auction
of your home for years, but that is hard work.
I. Property taxes are super-priority and can bump mortgages and tax liens. If you
do not pay county real property taxes, the county or city can sell your house free
and clear of liens, i.e. take all the money and lien holders collect nothing. Of
course, the mortgage holder would bid in their note and thus protect their interests.
The tax lien holder can legally do that also, but does not do that, as the IRS cannot
gain permission from national headquarters to enter a bid.
Thusly, the county auctions your home, your friend or relative bids it in and the
IRS loses their money. Simple, but do not do this without legitimate legal advice.
Call Dr. Clarkson.
J. Foreclosure on yourself. If you have a mortgage you can use that to bump IRS
out. Hard to do, but effective. Follow Dr. Clarkson's advice carefully here.
8. You need to read and study. Tax liens are a difficult area of the law. However,
the material is not hard and only takes a lot of time to study and understand. We
recommend the following material:
A. Tax Collector Manual -- the actual training and instruction manual for tax collectors.
Best explanation in clear and simple language of how collection and lien system
of IRS operates. Essential information. $8 for Book I, II or III; $20 for set of
all three books. Note: Bankruptcy on the IRS Book III of the Tax Collectors
Manual explains in simple language how to discharge tax debts by IRS. $8.
B. Judgment Proofing. The Clarkson 2-part series that explains how you can protect
your property from the thieving tax collector. These describe IRS collection procedures
and the steps you can take to stop them. These are available on DVD or VHS for $30
IMPORTANT—Real estate has particular legal requirements. Be careful. Do
not take advice from friends and associates no matter how well meaning they are.
Follow advice of Dr. Clarkson or a real estate lawyer, only. C. Law Dictionary by Gifis. A good, full explanation of the terms you will see.
Used by lawyers and judges. $30
D. Silver and Gold Explained. The Clarkson video that best explains a safe and secure
saving system that is outside the reach of the tax thieves. Proven successful. Video
$30, Audio $10.
E. Financial Privacy �No Checks. The classic Clarkson video/book that explains how
you can escape the tyranny of the IRS and Federal Reserve System. Operate your business
without a bank account. Video $30, Audio $10, Book $10.
All of these resources are available from the Patriot Bookstore.
9. The levy on bank account. Since the banks/Federal Reserve/IRS are all the same
thing, we can do little here. The IRS just switches your money from their joint
account with you in their bank to their account in the same bank. It's gone and
irretrievable, except with quick bankruptcy.
Under the new law, the IRS can place a hold on your account for twenty days, during
which you can make a deal with the IRS. Then they will remove the hold. Best to
never deal with those tax thieves, but a fake OIC or fake cooperation can remove
the hold on your account.
However, you are not required to maintain a bank account�so close out all those
in your name. If you have any connection to any bank account, even just a signature
card, the IRS can steal it (or really, just transfer it).
The Patriot Network strongly recommends that you do NOT have a bank account or any
connection with one. See Financial Privacy—No Checks.
The only effective way to protect your money in a bank account is to withdraw all
funds. You can invest your savings in silver and gold. See Clarkson video Silver
and Gold Explained, mentioned above.
If you feel you must have a bank account, you can open a foreign bank account (see
Financial Privacy— No Checks, above), or have a friend or relative
open an account in their name with no connection to you. Then they can hand you
a package of pre-signed checks. However, this is not recommended. See Judgment Proofing,
10. These levies, as most, are not continuous and do not apply again unless the
IRS sends a new levy form. However, most financial institutions ignore this provision
11. Brokerage Accounts and Investment. The IRS can steal these easily, if they bother
to. It may take the tax collectors a while to levy these, but once they do, there
is not much we can do. Actually, they frequently do not find brokerage accounts
and almost never find other types of investments and receivables.
12. Wage and Salary Levy. The slovenly tax collectors often find your employer and
steal your paycheck. This is difficult unless your employer will go along with us.
B. Ask your company to make you an independent contractor. Then you will have no
wages and salary to levy. Many books explain this option.
C. You can work for a labor service company or temporary labor supplier, often called
"job shop.� Then the company would send your entire paycheck to the job shop,
which would pay you with no levy on them.
The patriot community has several temporary labor companies that can hire you and
sell your labor to your company. E-mail
D. Bankruptcy. You can file bankruptcy and immediately remove wage levies and in
some cases make the IRS refund stolen pay. See Bankruptcy below.
E. Exemptions. When your company notifies you of a wage levy, they will give you
an IRS form. Read it and you will discover that you can claim your wife and children
or dependents. Your exemptions limit the IRS's thieving. You are entitled to a set-off
of about $150 per week for yourself or over $650 per month. Also, each dependent,
whether real or not, can give you an exemption of about $75 per week or about $300
per month per person. A large family or a part-time job would render the levy ineffective.
F. Wife sues for child support. A child support order has priority over IRS wage
levy if filed first. Have your wife steal your paycheck first.
G. Sue your employer. Then they would fire you and you could collect unemployment
for six to twelve months. Use this money to go into business for yourself.
H. Change jobs. If you change jobs, the Instant Robbery Squad will seldom find you
(unless you claim exempt on withholding. The IRS seldom looks very hard. Your new
employer will not know about the levy, which then would not apply. However if you
quit your job, your pension etc. may then pay out, which the IRS would steal. Wages
and salary levies are continuous, i.e. attached to future pay checks.
If your employer agrees, you can make arrangements for him to fire you and then
rehire you a few days later. When he fires you, you are no longer working for the
company, your levy is squashed and does not reapply when you are rehired.
13. The Tax Refund Suit. You can sue the IRS and take your case to a jury. The jurors
hate the tax collectors and almost always find in your favor. Although, the U.S.
Attorney knows what the jury will do and therefore will offer you a settlement that
However, to file a tax refund suit, the law requires that you first pay the taxes
allegedly due. This is unwise, unless they have already stolen the money. Generally,
we can force them to refund to you one-half of what was a stolen, depending on the
circumstances. If you were audited or if you ignored a 90-day letter, then the tax
refund suit may be the best route. No tax refund suit exists if you go to tax court.
For a tax refund suit, you must file an IRS Form 1040X, available from the IRS or
the Patriot Network. The IRS will refund your money in a few months or deny your
claim. After the denial or six months, you can sue. Be sure to request a jury trial.
The Patriot Bookstore has a packet for Tax Refund Suits. $100, listed on the
14. Bankruptcy. You can now file bankruptcy on the IRS and wipe out the tax debts
for your personal income tax, but not for withholding taxes on employees.
You can file Chapter 7 for a complete and total discharge of debts, including income
taxes past due three years.
Or you could file Chapter 13, the wage earner plan, to remove liens and levies and
make a few payments for a few years, then a discharge.
We have books and packets for you to use to file bankruptcy by yourself without
an attorney. You can also find good books at your public library that explain bankruptcy
laws in simple, easy language. Feel free to call Dr. Clarkson if you are a Patriot
15. Backup and support. The Patriot Network has Dr. Clarkson and his crew of expert
paralegals that can help you through the maze of revenue regulations and federal
laws. Feel free to contact us for help. However, we first want you to view the Patriot
Network introductory video to see what we are doing. Also, you should join the Network and receive the membership services plus attend the Clarkson Law Course.
16. Plead poverty. You can negotiate with the tax collectors and persuade them to
remove liens and levies due to hardship. This could be dangerous, so be careful.
When you receive a Notice of Lien or Levy for your local tax collector, you can
contact the Revenue Officer on your case. You can explain that you have no assets
and no money, yet you have a number of small children. The tax collector has the
authority to postpone all collection activities in such cases. However, most will
17. The OIC: Cut a deal. If you have no sizable assets, the Revenue Officers have
the authority to compromise a tax claim. Often they can be very generous. The Patriot
Network has negotiated very large reductions. However, the tax collectors want you
to fill out a financial statement, which is worse than a 1040 form, along with other
forms including past 1040's. Dr. Clarkson does NOT recommend filling out this statement
unless it is the last option. After you confess all your personal and private activities,
you can ask for a payment schedule to pay your taxes. The IRS loves the monthly
payments and will allow almost everybody to use them. Also you can make your Offer
in Compromise, which is a request to pay a lesser amount due to your impecunious
state. They can and will cut your tax due but only if you beg and surrender all
of your rights. Also, the Offer in Compromise can stop or slow your filing
for bankruptcy. Dr. Clarkson advises, this as a last resort and even then this does
not help some people unless they specifically follow our directions.
18. Illegal or harassment levy. To frighten you, the tax thieves often file illegal
liens and levies. If so, you can remove them by writing a few careful letters and
contacting your Congressman. See Clarkson's Earnest Letter Writing book.
Often the thieves will file a tax lien prior to issuing the 90-day letter or Notice
of Deficiency, a mandatory step. If so, you can sue to easily remove the lien. To
scare people, the collection agents will slap seizure notices around. This is illegal
and easily overturned. You can put the tax rat in jail if you are willing to push
hard enough. You can sue them for $100,000 damages under the Illegal Tax Collection
Act IRC §7433.
19. The Taxpayers Advocate (formerly the PRO). You can contact the Problems Resolution
Officer in any district office. Some are helpful but none have much authority and
most are incompetent. The chief PRO or Taxpayer Ombudsman, New National Taxpayer
Advocate is in the IRS national office in Washington , DC . You can file the Taxpayer
Assistance Order (Form 911) for an order halting IRS activity. Try it.
20. The 1040X: You can amend old returns by filing a 1040X Amended Return.
If the IRS audits a return and you lose the audit, you can restart the audit with
the 1040X. Also, if the rotten tax collectors file a tax return for you or audit
you for not filing, they will dream up large figures against you. If you do not
have any sizeable assets, you can laugh away their non-collectible judgments. However,
if they can find a way to punish you, you can beat them with the 1040X.
The amended tax return is also the first step for the tax refund suit. To fill out
this form, put down what they say are your figures, then enter the correct ones.
This is not complicated. You can hire a tax preparer for this. However, some tax
return preparers will try to overcharge you. Shop around to find a cheap one or
call the Patriot Network. Or, just attach to the 1040X a copy of old or correct
The important part of the 1040X is Part II on the back. Here, explain carefully
what you want. You may not be able to add new figures later. Explain, for example,
that the IRS audited you and came up with figures that are incorrect and taxes that
are not owed, that you do not owe the taxes because you have children, dependents,
etc. You can file as many 1040X's as you wish. Do so.
21. Contractor Payments: If you do not work for wages and salaries but work as an
independent contractor, you are not an employee and you receive contract payments.
Frequently, the IRS will illegally and incorrectly use a wage levy on contract payments.
Your company will honor this immoral act, outlawed even by the IRS, because the
payroll department does not understand the law nor care about your rights.
The law provides for continuous levy and seizure of wages and salaries only and
nothing else. However, the company will illegally treat a seizure of contract payments
as continuous. The IRS law provides that a levy on money due you other than wages
and salaries steals only what the company owes you at the time the levy is received,
Note: the information in this Report is updated from time to time in the e-Patriot
Cannon E-Zine according to what laws are changed or added. It is very important
for you to learn of further strategic developments.
Click here to join the Patriot Network, so we can help
you with IRS harassment!
Robert Clarkson is a graduate of Clemson University in economics (1969) and the
University of South Carolina Law School (1974). He is one of the South's leading
patriotic political organizers. (feb08)
COLLECTION ENFORCEMENT BY LEVY ACTION Disclaimer: This was not written by Robert Clarkson and is for informational
This guide has been put together to help those taxpayers who are currently coping
with levies against their income. This guide addresses both the issue of continuous
levies and levies against Social Security Benefits.
Extensive research has been done in both areas and have resulted in the following
1. Your Congress did not intend for the levy system to leave it's citizens without
the means to pay for the necessities of life. Congress has provided restrictions
within which the IRS must comply when collecting taxes by enforcement action. In
1998 Congress passed the Restructuring and Reform Act. This act provided the taxpayer
with more Due Process in IRS Collection Actions than ever before. The problem we
are now faced with is exercising and enforcing those rights.
2. The IRS will ignore the levy restrictions and your due process rights and will
force the taxpayer to undergo extensive administrative procedures to force the IRS
to comply with the restrictions contained in the laws.
3. The IRS will levy in excess of the 15% maximum allowed for continuous levies. 4. The IRS' position is that "Social Security benefits are not exempt from
levy under IRC Section 6334". This statement has appeared on numerous letters
from the IRS to the taxpayers, who have challenged the legality of the IRS
attaching a levy their benefits. The IRS will levy Social Security Benefits. This
has become our toughest challenge. The IRS' position is that they have always had
the right to levy Social Security Income for Aged, Blind, and Disabled, also
known as SSI. They admit they have never and still do not have the right to levy
Social Security Income for the Disabled before retirement also known as SSD. However,
they will levy all Social Security Income. Our position is that the IRS does not
have the right to levy any Social Security Benefits pursuant to 42 USC 407 and that
Congress never intended the IRS to have the right to levy those benefits. > 5. The Social Security Administration's position is that "the Internal Revenue
Code, Sections 6331 and 6334, a levy may be imposed on a Social Security benefit
for the collection of delinquent Federal taxes. The "Deficit Reduction Act
of 1984" amended section 6334(c) of the Internal Revenue Code to clarify that
Social Security benefits are subject to levy the United States to satisfy unpaid
taxes." This statement has appeared on numerous letters from the Social Security
Administrative to the beneficiary, who have challenged the legality of the IRS attaching
a levy to their benefits.
6. The primary reason Congress gave the taxpayer the right to a "Collection
Due Process Hearing" was to address these problems. This right was granted
in the 1998 Restructuring and Reform Act. The hearing process has been under tremendous
attack by the judicial system and has resulted in most decisions in favor
of the IRS. We believe this has come about for several reasons.
a. The judicial system has always leaned in favor of the Government, especially
in the area of tax. The "Collection Due Process Hearing" has placed an
added burden on the judicial system.
b. The taxpayer has used the "Collection Due Process Hearing" to challenge
the legality of the income tax. This was not what Congress intended and this has
caused a great burden upon the administrative process and the judicial process.
The "Collection Due Process Hearing" is the administrative process you
must use to challenge the procedures being used in levying your income. This means
even if you owe the tax liability and the IRS is levying in excess of the
statutes, you must request a hearing in order to be heard. The Restructuring and
Reform Act of 1998 required the IRS to offer a Collection Due Process Hearing for
all collection action by levy.
"The Restructuring and Reform Act (RRA) of 1998 established the Due Process
appeal rights under IRC 6320 and IRC 6330. These provisions apply to levy and lien
actions taken after January 18, 1999." See [5.1]9.3 Section 3401 Due Process in IRS Collection Actions states the following:
"This new notice requirement applies to levy actions that occur on or after
the effective date of this provision. When this provision goes into effect, no matter
how old or how recently a notice of intent to levy has been issued, there will also
have to be a notice of a right to a hearing before a levy."
You may request a Collection Due Process Hearing on Form 12153. In order to
determine if a levy is being properly carried out, you must apply both 26 USC 6331
and 26 USC 6334 to your situation and any applicable statutes outside of Title 26,
that would be authority over Title 26 statutes. The following outlines the sections
that apply to a continuous levy and the maximum 15%. Continuous Levies 26 USC 6331 Levy and Distraint 26 USC 6334 Property Exempt From Levy In addition to granting the Secretary the authority to use levy and distraint action
in the enforcement and collection of taxes, 26 USC 6331(h)(1) and (2)(B) provide
a maximum limitation of 15% on levies against wages, salary and other income, which
states, "such continuous levy shall attach to up to 15 percent of any specified
payment due to the taxpayer". Simply stated section 6334(a)(9) provides for the minimum exemption for wages, salary,
and other income, while Section 6331(h)(1) and (2)(B) provide for the maximum limitations
for wages, salary, and other income. Both statutory requirements must be in compliance. Section 6334(a)(9) provides in part: (9) Minimum exemption for wages, salary, and other income: Any amount payable to
or received by an individual as wages or salary for personal services, or as income
derived from other sources, during any period, to the extent that the total of such
amounts payable to or received by him during such period does not exceed the applicable
exempt amount determined under subsection (d). There is both a minimum exemption for wages, salary and other income and a maximum
limitation allowed on continuing levies. Section 6331(e) provides in part: (e) The effect of a levy on salary or wages payable
to or received by a taxpayer shall be continuous from the date such levy is first
made until such levy is released under section 6343. Section 6331(h)(1) and (2)(B) also provide for a maximum amount for continuous levies
which include salaries and wages. Section 6331(h)(1) and (2)(B) are applicable to this levy action and provide in
part: (h) Continuing levy on certain payments (1) If the Secretary approves a levy under this subsection, the effect of such levy
on specified payments to or received by a taxpayer shall be continuous from the
date such levy is first made until such levy is released. Notwithstanding section
6334, such continuous levy shall attach to up to 15 percent of any specified payment
due to the taxpayer. (2) Specified payment: For the purposes of paragraph (1), the term "specified
payment" means (B) any payment described in paragraph (4), (7), (9),
or (11) of section 6334(a) The statute could not be more complete. Any specified payment under any paragraph
described in Section 6331(h)(2)(B) cannot be levied for more than a maximum of 15
percent. Wages and salaries are the "specified payment" described in paragraph
(9) of section 6334(a) described here in section 6331(h)(2)(B). You cannot under
any condition levy and seize more than the statutes permit. Section 6334(a)(9) provides in part: (9) Minimum exemption for wages, salary, and other income: Any amount payable to
exempt amount determined under subsection (d). Levies on Social Security Benefits 42 USC 407 Assignment; Amendment of Section 26 USC 6331 Levy and Distraint 26 USC 6334 Property Exempt
From Levy History shows that these benefits have been consistently immune from levy and seizure
action since the enactment of the original Social Security Act. Section 208, "the right of any person to any future
payment under this title shall not be transferable or assignable, at law or in equity,
and none of the moneys paid or payable or rights existing under this title
shall be subject to execution, levy, attachment or any other legal process, or to
any bankruptcy or insolvency law."
The statute could not be more complete. You cannot under any condition levy and
seize any portion of Social Security Benefits payable to any person for any reason.
Social Security Benefits remain immune to any seizure or limitations. This is the
one asset which is and remains invulnerable to seizure. Social Security Benefits are immune from levy pursuant to the statutes. Title 42
section 407 establishes that these benefits shall not be subject to levy and 26
USC 6331 and 26 USC 6334 together confirm this. 42 USC 407 Assignment of Benefits (a) The right of a person to any future payment under this subchapter shall not
be transferable or assignable, at law or in equity, and none of the moneys paid
or payable or rights existing under this subchapter shall be subject to execution,
levy, attachment or any other legal process, or to any bankruptcy or insolvency
law. (b) Amendment of section: no other provision of law, enacted before, on, or after
April 20, 1983, may be construed to limit, supersede, or otherwise modify the provisions
of this section except to the extent that it does so by express reference to this
section. 26 USC 6331 Levy and Distraint (a) Authority of Secretary If any person liable to pay any tax neglects or refuses to pay the same within 10
days after notice and demand, it shall be lawful for the Secretary to collect such
tax (and such further sum as shall be sufficient to cover the expenses of the levy)
by levy upon all property and rights to property (except such property as is exempt
under section 6334) belonging to such person or on which there is a lien provided
in this chapter for the payment of such tax. (b) Seizure and sale of property (c) Successive seizures (d) Requirement of notice before levy (e) Continuing levy on salary and wages (f) Uneconomical levy (g) Levy on appearance date of summons (h) Continuing levy on certain payments (1) If the Secretary approves a levy under this subsection, the effect of such levy
due to the taxpayer. (2) Specified payment means (A) any Federal payment other than a payment for which eligibility is based on the
income or assets (or both) of a payee, (B) any payment described in paragraph (4), (7), (9), or (11) of section 6334(a),
and (C) any annuity or pension payment under the Railroad Retirement Act or benefit
under the Railroad Unemployment Insurance Act. 26 USC 6334 Property Exempt from Levy (a) There shall be exempt from levy (11)Certain public assistance payments: Any amount payable to an individual as a
recipient of public assistance under - (A) title IV or title XVI (relating to supplemental security income for the aged,
blind, and disable of the Social Security Act, or (c) No other property exempt: Notwithstanding any other law of the United States
(including section 207 of the Social Security Act), no property or rights to property
shall be exempt from levy other than the property specifically made exempt by subsection
(a). (f) Levy allowed on certain specified payments: Any payment described in subparagraph
(B) or (C) of section 6331(h)(2) shall not be exempt from levy if the Secretary
approves the levy thereon under section 6331(h). 6334 NOTES References in Text The Social Security Act, referred to in subsecs.
(a)(11)(A) and (c), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Titles
IV and XVI of the Social Security Act are classified generally to subchapters IV
(Sec. 601 et seq.) and XVI (Sec. 1381 et seq.), respectively, of chapter 7 of Title
42, The Public Health and Welfare. Section 207 of the Social Security Act
is classified to section 407 of Title 42. American Jurisprudence 2000 Edition Social Security and Medicare Assignment and Withholding of Benefits Assignment 1990 SSI benefits cannot be assigned A provision of the Social Security
Act, which states that the right of any person to future OASDI payments cannot be
transferred or assigned, and that no money paid or payable or any right existing
under the OASDI program is subject to execution, levy, attachment, garnishment or
other legal process, or to the operation of any bankruptcy or insolvency law, is
applicable to SSI payments as well. The SSA will not certify the payment of SSI
benefits to a transferee or assignee of an eligible person or of a survivor of an
eligible person who is entitled to receive the payment of an underpayment. Practice Guide: SSI benefits are expressly exempt from an Internal Revenue Service
Levy to collect unpaid federal taxes. 26 U.S.C.A. 6334(a)(11)(A). The SSA's responsibility for protecting benefits against
legal process and assignment ends when the claimant is paid; however, the claimant
can use these statutory provisions as a personal defense against actions to order
payment of the benefits to someone else or legal processes to take the benefits.
Automated Levy Program Taxpayers are being told by IRS agents and Taxpayer Advocates that the Federal Payment
Levy Program gives them the right to levy on Social Security. This is not correct.
The Federal Payment Levy Program is not a statute but an automated system of matching
taxpayer numbers with federal payments. Federal payments describe any payment made
by the Federal Government, such as student loans, federal employees salaries and
vendor payments. The IRS has included Social Security in the Federal Payment Levy
Program because it is a Federal payment, however, the IRS ignores the ruling statute,
42 USC 407.
Part 5, Collecting Process Chapter 11, Notice of Levy
Section 7, Automated Levy Programs Background and Authority (5.11.7.2.1 (10-27-2000)
According to the Internal Revenue Manual, the IRS is allowed by law to levy up to
15% of Social Security Benefits. This is accomplished via the Federal Payment Levy
Program (FPLP), which states in part: "Internal Revenue Code (IRC) Section 6331(h), as prescribed by the Taxpayer
Relief Act of 1997 (Public Law 105-34) Section, authorizes the Internal Revenue
Service to issue continuous levies on certain federal payments." "The law allows up to fifteen percent of (15%) specified payments to be levied.
Specified payments include any federal payment other than a payment for which eligibility
is based on the income and/or assets of a payee (e.g.: > Medicaid)." "The Department of Treasury, Financial Management Service (FMS) is the disbursing agent for many of the federal payments that can be levied." "FPLP is a paperless, automated levy program the IRS has implemented with FMS
that will systemically attach 15% of certain federal payments made by FMS." "FPLP will be phased in over a 3 to 4 year timeframe. The first phase of the
FPLP was implemented in July 2000." See IRM Part 5, Collecting Process, Chapter
19, Liability Collection, Section, Automated Levy Programs. Part 5, Collecting Process Chapter 11, Notice of Levy
1. Internal Revenue Code (IRC) Section 6331(h) as > prescribed by the Taxpayer
Relief Act of 1997 (Public Law 105-34) Section 1024, > authorizes the Internal
Revenue Service to issue continuous levies on > certain federal payments. 2. The law allows up to fifteen percent of specified payments to be levied. Specified
payments include any federal payment other than a payment for which eligibility
is based on the income and/or assets of a payee. 3. FMS disburses some of the federal payments that are available for levy under
this new law. 4. Although the law also allows levy on some payments that are exempt pursuant to
IRC Section 6334(a), the Service will not pursue those payment sources at this time. Part, Collecting Process Chapter 10, Liability Collection Section 9, Automated Levy Programs
1. Internal Revenue Code (IRC) Section 6331(h), as prescribed by the Taxpayer Relief
Act of 1997 (Public Law 105-34) > Section, authorizes the Internal Revenue Service
to issue continuous levies on certain federal payments. 2. The law allows up to fifteen percent of (15%) specified payments to be levied.
is based on the income and/or assets of a payee (e.g.: Medicaid). 3. The Department of Treasury, Financial Management Service (FMS) is the disbursing
agent for many of the federal payments that can be levied. 4. FPLP is a paperless, automated levy program the IRS has implemented with FMS
that will systemically attach 15% of certain federal payments made by FMS. 5. FPLP will be phased in over a 3 to 4 year timeframe. The first phase of the FPLP
was implemented in July 2000.
Letters to Remove TOP Levies
Freedomville, SC 22222
The Social Security Administration has removed from my retirement benefit check
the amount of 15% under the Treasury Offset Program (TOP). This was sent to the
IRS. This is a hardship for me. This check is all I have to live on. I do not have
any other income or monies. My health is failing me since my surgery and at present
I still have to see a doctor to advise me about a cataract in my right eye. I request
that the 15% offset be waived and/or removed due to hardship, this check is all
I have to live on.
Doug K. Patriot
SSN# 222-33-4444
any other income or monies. I have coronary artery disease and I had heart surgery
to put in a stent and at present I still have to see a doctor to advice me about
my high blood pressure. I request that the 15% offset be waived and/or removed due
to hardship. This check is all I have to live on.
Yours, Doug K. Patriot
Assistance on Complex
If you have questions regarding basic lien inquiries such as routine lien releases
and lien payoff amounts, contact the Centralized Lien Unit by calling the toll free
telephone number (1-800-913-6050). When faced with a complex lien issue, consider
contacting the Collection Technical Services (TS) Advisory function. TS Advisory
is a collection compliance function that interacts with taxpayers on complex lien
issues such as: Certificate of Discharge, Subordination, Subrogation, Non-Attachment,
Withdrawal and other complex lien issues. Publication 4235, Technical Services Advisory Group Addresses
should be used to locate the appropriate office to contact for assistance. http://www.irs.gov/pub/irs-pdf/p4235.pdf
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