Does the SCRA offer any help for servicemembers against an Internal Revenue Service (IRS) tax levy?
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Yes, Section 5700(a) provides some relief. The Act allows a deferment of income tax collection on the income of a servicemember until after the end of military service (termination or release). The deferment, though, does not last more than 180 days after the end of service.
A deferment is available if the tax is due before or even during military service, and applies to federal, state, and local income taxes. You must 1) provide notice to the tax authority and 2) satisfy a "needs based" test. That is, you must be unable to pay the tax because the ability to pay tax is materially affected by your military service.
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