Revenue Officer Levies of Social Security Benefits Indicate That Further Modification to Procedures Is Warranted

The Small Business/Self-Employed Division Director, Collection, should provide guidance on levying Social Security benefits and give examples to guide revenue officers as to when it is appropriate and how to levy Social Security benefits.

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

The Small Business/Self-Employed Division Director, Collection, should review the levy determination for the 17 levies that caused financial hardship and refund any appropriate amounts to taxpayers pursuant to Internal Revenue Code Section 6343(d)(2).

The Small Business/Self-Employed Division Director, Collection, should remind Field Collection employees to use Form 668-W when levying Social Security benefits.

The Small Business/Self-Employed Division Director, Collection, should send the applicable parts of Form 668-W with Notice 483 to the eight taxpayers in TIGTA's sample to provide them the opportunity to claim the proper amount of exemptions they are allowed.