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Social Security Levy

Can the IRS Garnish Your Social Security?

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.

How Long Does It For the IRS To Levy Social Security & How Much?

If a taxpayer decides not to contact the IRS within 30 days from the date on the notice, IRS will submit the levy to the Financial Management Service (FMS). The Taxpayer will then have 15% of their Social Security monthly distribution taken until their tax liability has been paid.

Where To Get Help?

A levy will remain in effect until unpaid taxes are paid off or if the taxpayer makes other arrangements.

If you need help on a Social Security Garnishment, the Coast One Tax Group can help. Our team is experienced in resolving cases that involve social security levies and will provide a free consultation to review your individual situation.

Call us today at 18002073405 or schedule a free consultation with our tax experts to get started protecting your retirement from the IRS.