IIf you owe back taxes, you might assume you’ll get plenty of warning before the IRS takes action. Think again.
For certain federal payments—like Social Security benefits, federal salaries, and government contractor payments—the IRS uses a fast-track collection method called the Federal Payment Levy Program (FPLP) to seize your money automatically—even if the levy notice was sent years ago.
In this article, we’ll uncover:
✔️ What the FPLP is and how it operates
✔️ Which payments the IRS can and cannot seize
✔️ How much they can take
✔️ The five best strategies to stop an FPLP levy
✔️ Insider secrets the IRS doesn’t want you to know
💡 If your federal payments are at risk, time is critical—keep reading to learn how to protect your money!
What Is the Federal Payment Levy Program (FPLP)?
The Federal Payment Levy Program (FPLP) is an automated IRS collection process that seizes certain federal payments to satisfy delinquent tax debts.
How It Works:
1️⃣ The IRS flags your account as “seriously delinquent” ($59,000+ in unpaid taxes).
2️⃣ The Bureau of the Fiscal Service (BFS) matches your information with any federal payments you’re set to receive.
3️⃣ The IRS automatically levies those payments—no new warning required.
Key Facts You MUST Know About the FPLP:
🚨 No new notice is required – If you ever received a Final Notice of Intent to Levy (LT11 or CP90)—even years ago—the IRS does not have to send another one.
🚨 Automatic & Ongoing – The levy continues until your tax debt is paid or you take action to stop it.
🚨 Not limited to just one payment – The IRS can seize 15% of multiple federal payments at once.
Which Federal Payments Can the IRS Seize Under FPLP?
If your tax debt is flagged for FPLP, the IRS can levy the following federal payments:
✅ Payments the IRS CAN Take:
🔹 Social Security Benefits (excluding SSI)
🔹 Federal Salaries (current and former employees)
🔹 Federal Retirement Benefits (including OPM annuities)
🔹 Military Retirement Pay
🔹 Government Contractor & Vendor Payments
🔹 Certain Railroad Retirement Benefits
🔹 Medicare Provider & Supplier Payments
❌ Payments the IRS CANNOT Take:
🚫 Supplemental Security Income (SSI)
🚫 Veterans Affairs (VA) Benefits
🚫 Federal Student Loans
🚫 Some Military Disability Payments
🔎 A common mistake? Thinking your Social Security is protected. It’s NOT! The IRS can legally take 15% of it every single month.
How Much Can the IRS Take?
💸 Federal benefits (Social Security, federal retirement, etc.) – The IRS takes 15% of each payment, every month.
💰 Federal contractor & vendor payments, Medicare reimbursements – The IRS can take 100%!
Example: How an FPLP Levy Affects Your Benefits
| Federal Payment Type | Monthly Benefit | 15% IRS Levy | Amount Received After Levy |
|---|---|---|---|
| Social Security | $2,000 | $300 | $1,700 |
| Federal Retirement | $3,500 | $525 | $2,975 |
| Military Retirement | $2,800 | $420 | $2,380 |
🚨 The levy is ongoing—meaning this deduction continues until your tax debt is gone or you take action!
How to STOP an FPLP Levy (Before It’s Too Late!)
If your federal payments are being seized under the FPLP, you must act FAST to stop the levy. Here are five proven strategies to get your money back:
1️⃣ Pay the Balance or Set Up a Payment Plan
💡 Fastest way to stop the levy: Pay off your balance in full OR set up an Installment Agreement (IA).
✔️ Call the IRS at 1-800-829-1040 to set up a plan.
✔️ Once approved, the IRS must release the FPLP levy.
2️⃣ Request “Currently Not Collectible” (CNC) Status
If you can’t afford basic living expenses, the IRS must stop collections—including FPLP levies.
✔️ File Form 433-F to prove financial hardship.
✔️ Call 1-800-829-7650 to request CNC status.
⏳ This stops levies temporarily, but the IRS will check your finances annually.
3️⃣ Apply for an Offer in Compromise (OIC)
🔥 Settle your tax debt for LESS than you owe!
✔️ If the IRS accepts your Offer in Compromise, collections STOP immediately.
✔️ Use the IRS OIC Pre-Qualifier Tool to see if you qualify: irs.gov.
4️⃣ Appeal the Levy (If IRS Procedures Were Violated)
🚨 If the IRS never sent you a Final Notice of Intent to Levy (LT11 or CP90), you may be able to challenge the levy.
✔️ File a Collection Due Process (CDP) hearing request (Form 12153).
✔️ This temporarily stops enforcement while the IRS reviews your case.
5️⃣ Prove Financial Hardship for Social Security Levies
If the 15% levy on Social Security creates extreme hardship, you can request a full or partial release.
✔️ Call 1-800-829-7650 and explain your hardship.
✔️ You must provide financial proof (rent, medical bills, etc.).
Final Thoughts: Protect Your Money from the FPLP
🚨 The Federal Payment Levy Program (FPLP) is one of the IRS’s most aggressive collection tools—and it does not require a new warning once your account is flagged.
💡 The best way to avoid an FPLP levy? Resolve your tax debt NOW before enforcement begins. Whether it’s a payment plan, hardship request, or tax settlement, taking action is the only way to protect your income.
If your payments are already being levied, time is critical—consider working with a tax professional to stop the IRS from taking your money.
📢 Have questions? Drop them in the comments below!
