In short-Yes, the IRS can levy a taxpayer’s Social Security benefits to satisfy a tax liability.
IRS levies on monthly Social Security payments may include retirement payments, survivor payments, or disability insurance program payments. Under federal law, the IRS cannot levy Veteran Administration pensions or Veteran Administration disability payments.
In fact, as of July 2000, the new Federal Payment Levy Program allows the IRS to dip into Social Benefits paid to taxpayers, it also allows the IRS to levy money that individuals receive from:
- Federal employee retirement annuities
- Federal payments
- Federal employee travel advances or reimbursements
- Federal salaries
Taxpayers who owe money to the IRS, and are receiving Social Security benefits from the Federal Old-Age and Survivors Trust Fund (or) Disability Insurance Benefits, the IRS can take 15% of their monthly Social Security payment to satisfy your tax liability.
The IRS must send a “Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing”. If a taxpayer receives this notification, they will have 30 days from the date on the document to respond before the IRS will begin collection actions.