Low Income Filter on Military Retiree Payments

A “low-income filter” will be soon applied to military retiree payments. In response to a congressional inquiry, the IRS has agreed to apply the filter to military retiree payments subject to the Federal Payment Levy Program (FPLP). This levy process kicks in after the IRS sends several notices to a taxpayer about a balance due but the taxpayer doesn’t respond. The IRS estimates the filter will be applied this fall. But the IRS stated that, “if a levy causes a hardship” in the interim, the tax agency will work with a military retiree to release it.

For any questions on this topic or other tax related questions, contact us via email or at (919) 662-1001.