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This is the info extracted fro the"green book" no. 2 specifically:
DEPARTMENT OF THE TREASURY
INTERIM FINAL RULE
GARNISHMENT OF ACCOUNTS CONTAINING FEDERAL BENEFIT PAYMENTS
31 CFR Part 212
Frequently Asked Questions and Answers
1. After establishing a protected amount, can a financial institution
deduct its garnishment fee from the nonprotected funds before sending
funds to the court, or only from what's left over? What if charging a
garnishment fee would create an overdraft? Under the rule, a
garnishment fee can be charged or collected only on the date of the
account review. If a protected amount is established, a garnishment
fee can be charged or collected if there are nonprotected funds
against which the fee can be charged.
Section 212.6(h) of the rule states that a “financial institution may
not charge or collect a garnishment fee against a protected amount,
and may not charge or collect a garnishment fee after the date of
account review.” The creation of an overdraft to apply a fee
necessarily involves the collection of that fee after the date of
account review, which the rule prohibits.
2. Are tax levies subject to the rule? Currently, the requirements of the
rule are triggered by the receipt of a “garnishment order,” which is
defined as an order issued by a court or a state child support
enforcement agency. Accordingly, Federal or State tax levies issued
directly by a taxing authority are not subject to the rule. Treasury
is seeking public comment on all aspects of the rule, including
whether levies should be included in the definition of “garnishment
order.” The comment period for the rule extends through May 24, 2011
confusion on "liens" I mean't "levies" sorry.
I understand that once money is in bank it's protected.
questions, what do you mean by offset by 15%, isn't there a maximum amount in ea account that's protected and everything over is taken. does this action happen every 30 days for the protected amount or?
I thought that you may have meant levies. It is a pretty common mistake.
I am not sure what an EA account is, but the 15% is the amount that can be withheld through FMS prior to the electronic payment. This is why the rule is being discussed. SSI and other payments are subject to 15% levy through FMS. Now that they want to require electronic payment, they want to ensure a rule that was once discretionary is in full effect protecting the remaining 85% from being attached through bank levy.
As far a 1. Goes. The garnishment takes first so the fee would have to be charged against remaining funds or over drafted which goes to question 2.
Under 212.3, tax levies are considered garnishments and subject to the rule.
That is the thought based on the majority of comments.
This is what you are asking, right. What comments regarding the rule are stating?
Were you aware of the purpose? The fact that there is another option FMS 15% to collect these debts, and that is why the amounts received are protected?
Hopefully I answered your question. I believe they will broaden the rule to include all garnishments including tax. I can almost guarantee it. If you have any other questions or I have not addressed you question, please let me know. If not , feel free to comment after acceptance.
What is the FMS 15% to collect these debts mean ? What is the relationship of this to the protected amounts ? My interpretation of item 2 below:
(Accordingly, Federal or State tax levies issued
directly by a taxing authority are not subject to the rule).
This says to me that my ss and vet ath deposits are not ptotected?
typo ath is ACH
I did not see the top of your reply. the only thing left is what is FMS and will it concern me with ACH deposits?
FMS is the Federal Management System. They can levy these payment sources at 15% prior to payment to the individual. These regs speak to levies on financial accounts.
The broadened rule will likely include tax levies. Currently they do not.
does the state have anything to do with fms?
ie state can't get at my money before it's dispersed rite?
Yes. All debt can be collected through FMS.
Up to 15% if you owe tax. If you owe tax to the State, you can provide them with a financial statement and be placed in a hardship status which will prevent all levy action.