Marty J. Meehan - Page 9

                                        - 9 -                                         
               As explained below, we conclude that petitioner’s severance            
          pay constituted “wages” within the meaning of the above-quoted              
          regulation.  Accordingly, because the continuing levy on                    
          petitioner’s wages predated the effective date of section 6330,             
          we lack jurisdiction to review respondent’s collection action               
          with respect to the severance pay.                                          
          Whether Severance Pay Is Subject to a Continuing Wage Levy                  
               Generally, a levy extends only to property possessed and               
          obligations existing at the time levy is made.10  Sec. 6331(b).             
          As an exception to this general rule, section 6331(e) provides              
          for a continuing levy on “salary or wages”.11  The continuing               
          levy attaches to salary or wages earned but not yet paid at the             
          time of levy, advances on salary or wages made after the date of            
          levy, and salary or wages earned and becoming payable after the             

          to resolve this issue; as explained in the text above, we                   
          conclude that we lack subject-matter jurisdiction to review the             
          levy of petitioner’s severance pay because this collection action           
          was initiated prior to the effective date of secs. 6320 and 6330.           
               10 Whenever any property or right to property upon which               
          levy has been made is insufficient to satisfy the claim for which           
          levy is made, the Commissioner may, thereafter, and as often as             
          may be necessary, proceed to levy in like manner upon any other             
          property subject to levy of the person against whom such claim              
          exists, until the amount due from him, together with all                    
          expenses, is fully paid.  Sec. 6331(c).                                     
               11 Sec. 6331(h) also provides for a continuing levy that               
          attaches up to 15 percent of any “specified payment” due to the             
          taxpayer.  The term “specified payment” includes certain Federal            
          payments, certain exempt amounts under sec. 6334, and certain               
          annuity or pension payments.  Sec. 6331(h)(2).                              

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011