Social Security Levy

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Can the IRS Garnish Your Social Security?

Yes. They can. The IRS can levy Social Security benefits to satisfy owed taxes.

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

For 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 their tax liability.

Internal Revenue Service 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 the taxpayer decides not to contact the IRS within 30 days from the date on the notice, the 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.