In my previous blog, I described the Federal Payment Levy Program (FPLP) and outlined my general concerns about the IRS’s implementation of the “Low Income Filter” (LIF) and lack of person-to-person assistance. In this blog post, I discuss my concerns about the IRS’s decision to extend the FPLP to military pensioners. The IRS based its decision to include military retirement payments as an additional payment stream in the FPLP on figures contained in a 2015 Treasury Inspector General for Tax Administration (TIGTA) audit report (Most Federal Employee/Retiree Delinquency Initiative Cases Are Resolved with the Collection of Revenue; However, Some Program Improvements Can Be Made, Ref. No. 2015-30-051 – hereinafter, the “TIGTA report”). TIGTA reported that the IRS planned to expand the use of the FPLP to military retirement payments to increase revenue, but utilize the low-income filter (LIF) to exclude military retirees with incomes below the 250 percent of the federal poverty guidelines, similar to the way it treats taxpayers receiving Social Security or Railroad Retirement Board (RRB) benefit payments. The IRS, however, decided not to implement the LIF for military retirees. Read more
Tag Archive for Federal Payment Levy Program
A classic case of the government giveth and the government taketh away.
One of the most common web-search phrases entered is this: “Is social security taxable”? The answer: It all depends on your income and filing status. If you file taxes as an individual and your combined income — that’s your adjusted gross income plus one half of your annual Social Security benefit — is less than $25,000, you won’t pay federal income taxes on your benefits.
But once you get past that $25,000 mark, that’s when you start seeing taxes. People who earn between $25,000 and $34,000 could have up to half of their benefits taxed, and people Read more
- New Tax Law Cracks Down On Home Mortgage InterestBy Peter FlournoyFor years, taxpayers have been able to deduct home mortgage interest on their primary and second homes as an itemized deduction, subject to certain limitations. The interest deduction was limited to […]
- What Does Tax Reform Mean For Me As An Individual?By John AdamsMany of the politicians touted the new Tax Cuts and Jobs Act as the simplification of our tax code. While it is true that some people may now be able to file less complicated tax returns, the law […]
- Budget Law For 2018 Introduces Major Developments To Domestic Tax System- Part IIBy Elio PalmitessaThis is the second of a series of posts on the major developments introduced by Law No. 205 (enacting the Italian Budget Law for 2018) Corporate taxation – Changes to calculation of EBITDA for […]
- Avoiding Cash Flow ProblemsBy Kazim QasimPoor cash flow can affect much more than the financial performance of your business. The non-financial costs of poor cash flow can have just as negative an impact on your business as the financial […]
- Apple Could Get A $4B Timing Reduction In TCJA’S 15.5% Transition Tax?By Ronald MariniAccording to taxproToday, Companies that stockpiled trillions of dollars offshore free of U.S. income tax may get one last break before paying up, provided their fiscal years don’t follow the […]
- New Tax Law Cracks Down On Home Mortgage Interest