Procedures for Retirement Account and Thrift Savings Plan Levies Are Not Always Followed by Revenue Officers

The Director, Collection, Small Business/Self-Employed Division, should revise the IRM for ACS employees to clarify that retirement income levy actions should not be taken if they will likely cause or exacerbate an existing economic hardship based on the facts and circumstances of the case.

The Director, Collection, Small Business/Self-Employed Division, should revise the IRM for revenue officers to clarify that economic hardship considerations should take precedence over other nonlegal considerations.

The Director, Collection, Small Business/Self-Employed Division, should consider revising the Form 668-A to more clearly indicate whether the levy is intended for a lump sum levy on a retirement account.

The Director, Collection, Small Business/Self-Employed Division, should ensure that the enhancement to the ICS to address the need for Area Director approval when a revenue officer intends to issue a levy on a retirement account is implemented and tested for proper use after implementation.

The Director, Collection, Small Business/Self-Employed Division, should provide revenue officers with clarification and reinforcement of the retirement account and TSP levy procedures in new hire training and periodic continuing professional education training.