Stanek Tax Services
  • Home
  • About
  • Services
  • Forms
    • Business Expense Worksheet
    • Business Professionals
    • Clergy
    • Direct Sellers
    • Entertainers
    • Firefighters
    • Flight Crews
    • Generic Tax Organizer
    • Law Enforcement
    • Realtors
    • Self Employed
    • Truckers
  • Links
  • Blog
  • Testimonials
  • Contact Us
  • Location
  • Client Portal

The IRS Can Now Levy And Collect Back Taxes From Federal Employees’ TSP Accounts

9/13/2014

1 Comment

 
If you are a federal employee with outstanding tax debts, you may find that money from your TSP account (Thrift Savings Plan) is garnished to make good on those debts.

The Federal Retirement Thrift Investment Board (FRTIB) issued a final rule on September 10 in the Federal Register that makes TSP accounts (Thrift Savings Plan accounts)subject to federal tax levies.

While this new rule might seem insignificant, the IRS has recently reported that collectively, federal workers owe $3.3 billion in back taxes. This new rule may help to collect some of that money.

TSP accounts will be frozen after the TSP (Thrift Savings Plan)  receives a qualifying tax levy or criminal restitution order. After the participant’s account is frozen, no withdrawal or loan disbursements will be allowed until the account is unfrozen. All other account activity will be permitted, including contributions, loan repayments, adjustments, contribution allocations and interfund transfers. Once a disbursement from the account is made in accordance with the restitution order or levy, the hold will be removed from the participant’s account.

1 Comment
Jonah Perry link
1/11/2021 12:12:24 pm

I enjoyed readinng your post

Reply



Leave a Reply.

    stanek tax

    Welcome to Stanek Tax Services where our Motto is, "Don't Panic, Call Stanek!"

    Archives

    May 2016
    April 2016
    January 2016
    December 2015
    November 2015
    October 2015
    April 2015
    December 2014
    November 2014
    September 2014
    June 2014
    May 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    August 2013
    July 2013
    June 2013
    May 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012

    Categories

    All
    Irs
    Retirement
    Tax

    RSS Feed

                                                       Copyright 2013 - Stanek Tax Services - All Rights Reserved

  • Home
  • About
  • Services
  • Forms
    • Business Expense Worksheet
    • Business Professionals
    • Clergy
    • Direct Sellers
    • Entertainers
    • Firefighters
    • Flight Crews
    • Generic Tax Organizer
    • Law Enforcement
    • Realtors
    • Self Employed
    • Truckers
  • Links
  • Blog
  • Testimonials
  • Contact Us
  • Location
  • Client Portal