As a follow-up to my story on the Federal Payment Levy Program, CMS and the IRS have collected more than $39 million from Medicare providers since the start of the levy program on Oct. 1, 2008, CMS says. The Medicare agency could not provide numbers showing how many providers have been affected, but it's fair to say it's a lot.
How does CMS calculate levy amounts? CMS reduces Medicare payments subject to the levy by 15%, or the exact amount of tax owed if it is less than 15% of the payment, the agency says. "The levy is continuous until the overdue taxes are paid in full, or other arrangements are made to satisfy the debt."
CMS will start collecting for non-tax levies (such as alimony, excises, etc.) on Oct. 5.