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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
9(...continued)
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).
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