The IRS can levy your Social Security benefits to satisfy a tax debt. IRS levies on monthly Social Security payments may include: retirement payments, survivor payments or disability insurance program payments. However, under federal law, the IRS cannot levy Veteran Administration pensions or Veteran Administration disability payments.
In fact, as of July 2000, not only did the new Federal Payment Levy Program allow the IRS to dip into some Social Benefits paid to you, but it also allows the IRS to levy money that you receive from Federal employee retirement annuities, Federal payments, Federal employee travel advances or reimbursements, and some federal salaries.
If you owe money to the IRS, and you are receiving Social Security benefits from the Federal Old-Age and Survivors Trust Fund (or) Disability Insurance Benefits, the IRS can take 15% of your monthly Social Security payment to satisfy your tax debt.
The IRS must send you a “Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing”. If you receive this notice, you’ll have 30 days from the date on the notice to respond before the IRS will begin collection actions.
If you decide to do nothing and you do not contact the IRS within 30 days from the date on the “Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing” after 30 days from the date on the Notice has passed the IRS will submit your levy to the Financial Management Service (FMS) and 15% of your Social Security monthly distribution will be taken until your tax debt has been fully paid.
The levy will remain in effect until the tax is paid off, or until you make other arrangements.
Coast One Tax Group has earned a reputation of excellence in the industry. Expert guidance is one phone call away. Give us a call! We are highly skilled and have experience resolving cases that involve social security levies and will provide a free consultation to review your individual situation.
If you owe $10,000 or more in back taxes to the State or IRS, the team of tax experts at Coast One Tax Group is here to help.