Federal payment levy program has 100% levy authority

Starting April 8, 2012, the FPLP will increase its continuous levy authority from 15% to 100% on all new and existing federal contractor/vendor payment levies. The 3% Withholding Repeal and Job Creation Act of 2011 expands IRC 6331(h)(3) to allow the FPLP to continuously levy 100% of vendor payments for “property, goods, or services,” instead of only “goods or services”, sold or leased to the federal government. This new law clarifies the language to cover all vendor payments that can be levied at 100%. Prior to this change, the FPLP levied only Defense and U.S. Postal Service contractor/vendor payments at the 100% levy authority since those payments were identified as payments from “goods and services.”