U.S. Rep. Jackie Walorski (R-IN) has successfully convinced the Internal Revenue Service (IRS) to treat military retirees as fairly as it treats other retirees when collecting unpaid taxes.
“All Americans have an obligation to pay the taxes they owe, but those who risked their lives for our country should be treated fairly and equally by the IRS,” said Rep. Walorski, who serves on the House Ways and Means Committee, which has jurisdiction over taxation matters.
IRS Acting Commissioner David J. Kautter wrote in a Jan. 12 letter to Walorski that the IRS plans to implement her requested change to the Federal Payment Levy Program (FPLP), which recovers unpaid taxes via automated levies on taxpayers who receive certain payments from the federal government. Generally, taxpayers with incomes below 250 percent of the federal poverty level are excluded from the program’s automatic levies, according to Walorski’s office, but in 2017 the IRS changed the FPLP and didn’t apply that criteria to military retirees.
In her Nov. 17, 2017 letter to Kautter, the congresswoman requested that the IRS use its so-called low-income filter for military retirement payments so that retirees would be spared undue economic hardship. Walorski pointed out in the letter that the practice would conform with how the IRS currently handles other federal retirement benefit payments. Using the low-income filter means a taxpayer won’t be left with too little money for living expenses after a levy triggers the automatic fund collection.
… “I am pleased the IRS has decided to protect low-income military retirees — many of whom spent decades serving in uniform — from unnecessary economic hardship,” said Rep. Walorski.
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