OLC: Federal Workers' TSP Accounts Are Subject to Tax Levy • TaxProf Blog

The Department of Justice's Office of Legal Counsel has issued an opinion to the IRS Chief Counsel concluding that Thrift Savings Plan accounts (401k-like plans of federal employees) are subject to federal tax levies under I.R.C. §§ 6331 and 6334, even though 5 U.S.C. § 8437(e)(2) explicitly protects such accounts from levy. The OLC concluded that because TSP accounts are not explicitly exempted in I.R.C. § 6334, the IRS's general levy power trumps federal workers rights under 5 U.S.C. § 8437(e)(2). (Hat Tip: Volokh Conspiracy, Ellen Aprill.)

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Paul Caron

Paul Caron was named Duane and Kelly Roberts Dean of Pepperdine University School of Law on June 1, 2017. Dean Caron joined the Pepperdine faculty in 2013 after serving as the Dorothy and Leonard Straus Distinguished Visiting Professor of Law in the spring semesters of 2010 through 2013. He served as Associate Dean for Research and Faculty Development at Pepperdine in 2015-2017. Before coming to Pepperdine, he was Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law.

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OLC: Federal Workers’ TSP Accounts Are Subject to Tax Levy

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OLC: Federal Workers’ TSP Accounts Are Subject to Tax Levy

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