Specific Social Security levy may outlast collection period

Plain-English summary

Chief Counsel explained what happens to levies when the collection statute expiration date, or CSED, passes. A continuous wage levy under Section 6331(e) must be released at the end of the CSED even if the IRS issued it before that date. The same general rule applies to Federal Payment Levy Program levies under Section 6331(h), subject to the stated exclusion for imminently ending CSEDs. A levy specifically imposed on Social Security income under Section 6331(a), however, continues after the CSED because the taxpayer had a fixed and determinable right to future Social Security payments when the levy arose.

Ruling snapshot

• Question: Which levies continue after the collection statute expiration date?
• Outcome: Advice given: continuous wage and FPLP levies end, but a specific levy on Social Security income may continue.
• Key authorities: IRC § 6331(a), (e), (h); Treas. Reg. § 301.6343-1(b)(1)(ii); IRM 5.11.7.2.2.2(2)

Full text (IRS public release)

ID: CCA_2019110415584040
UILC: 6331.00-00

Number: 202129006
Release Date: 7/23/2021
From: ------------------------
Sent: Monday, November 04, 2019 3:57 PM
To: -----------------------
Subject: Continuous Levies and CSEDs

Good Afternoon -------

During the recent ROTA call with this office, a question was raised regarding the effect of levies on other income, specifically with regard to Social Security income, once a CSED has run. Please share this with your staff.

First, we want to clarify an initial point. One of the ROTAs stated that a continuous wage levy under IRC § 6331(e) would remain in effect even if the CSED had run so long as the levy was made prior to the end of the CSED. This is not accurate. If the IRS has issued a continuous wage levy, the levy is released at the end of the CSED. This also holds true for FPLP levies under IRC § 6331(h), with an exclusion due to imminently ending CSEDs.

However, in the case of a levy specifically on Social Security income under IRC § 6331(a), the levy would continue after the CSED runs due to the fact that the taxpayer has a fixed and determinable right to future payments of Social Security income at the time the levy arose.

Thanks for your patience while we confirmed the points above with the levy experts in Counsel.

For further information, please see:

IRC § 6331(e)
Treas. Reg. § 301.6343-1(b)(1)(ii)
IRM 5.11.7.2.2.2(2)
IRC § 6331(a)
Treas. Reg. § 301.6343-1(b)(1)(ii)

Let me know if you have any further questions.

Best
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