Payroll on Bloomberg Tax is built to get you to the right answer faster and more efficiently. Get all the payroll intelligence you need with Bloomberg Tax expert analysis, perspectives and...
The Internal Revenue Service issued guidance May 7 on how to determine the wage and salary amounts that are exempt from levy, following changes that were made to the calculations under the recent tax code overhaul.
Notice 1439, “Figuring the Amount Exempt from Levy on Wages, Salary, and Other Income, Forms 668-W, 668-W(ACS) and 668-W(ICS),” said that its instructions replace those contained in the three versions of levy Form 668-W.
Among the changes in Notice 1439, the tables no longer base exempt amounts on number of dependents. Rather, the exempt amounts are based on the number of exemptions. The notice also helps employers in calculating the exemption amount, detailing three steps that cover the taxpayer’s wages, salary and income; age; and the amount that needs to be paid to cover the support of children. The notice also includes an example of a statement for dependents and filing status.
The IRS revised Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income (Forms 668-W(ACS), 668-W(c)(DO) and 668-W(ICS)), used to compute the amount of wages, salaries, and other income that is exempt from a notice of levy to collect delinquent taxes. The revision, released May 1, accounted for the removal of personal exemptions, which are suspended from 2018 to 2025 under the new tax law ( Pub. L. 115-97). The updated amounts are effective immediately, said James Maslanka, a senior program analyst at the IRS.
The levy notice is sent by the IRS to notify employers of a levy that exists against an employee. The Forms 668-W are to be revised soon. Also to be addressed later is whether each employee subject to a tax levy on wages would be required to submit a new statement to an employer for use with Publication 1494 because of the removal of personal exemptions, Malanska said May 3 during IRS’s monthly teleconference for payroll professionals.
Congress added Section 6334(d)(4) to the Internal Revenue Code as part of the tax code overhaul. The section identifies property exempt from levy.
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)