Did you know the IRS can take anyone’s Social Security to satisfy a tax debt?
It’s true. If you owe money to the IRS, and you are receiving Social Security benefits, the IRS can take up to 15% of your Social Security payments to satisfy your tax debt. Prior to 1996, there was a $750/month “off limits” amount that had to be left for the Social Security recipient. However, that changed with the introduction of the Federal Payment Levy Program, which allowed for 15% of the total monthly payment to be collected – regardless of the amount.
If you’re counting on Social Security benefits to live, you can’t afford to let the IRS just waltz in and take 15% of your livelihood without a fight. The IRS must send you a “Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing” form. At this point, you’ll have 30 days to respond.
You have a few choices at this point – you can either;
- Pay the tax
- Negotiate an alternative payment method (payment plan, partial payment plan, Offer-in-Compromise)
- Be declared non-collectible (hardship) status
- File for an appeal, or
- Ignore the warning and do nothing. If you decide to do nothing and you don’t contact the IRS, after 30 days they will submit your levy to the Financial Management Service (FMS) and 15% of your Social Security will begin to be taken to satisfy your tax debt.
Depending on your situation, you may be able to qualify for an Offer-In-Compromise and end up paying the IRS significantly less than you owe.
Don't let the IRS walk all over you. Get help.
To increase your chances of having your offer accepted, it would be a very good idea to have your paperwork prepared by a competent tax attorney. If you have questions or need assistance, contact us to schedule a free, confidential consultation. We can help. Call us at 888-727-8796 or email firstname.lastname@example.org.