IRS Tax Relief Program - IRS Garnishment of Social Security Benefits
Updated: Apr 18, 2019
IRS GARNISHMENT OF SOCIAL SECURITY BENEFITS
Beginning in February 2002, Social Security benefits paid under Title II - Federal Old-Age, Survivors and Disability Insurance Benefits the IRS was allowed to enforce a 15-percent levy through the Federal Payment Levy Program (FPLP) to pay your delinquent tax debt. As of October 5, 2015, IRS will no longer systemically levy the SSA Disability Insurance Benefits through the FPLP. The Old Age and Survivors Benefits will continue to be levied at 15% through the Federal Payment Levy Program (FPLP) to pay your delinquent tax debt.
Because the Federal Payment Levy Program (FPLP) is used to satisfy tax debts, the IRS may levy your Social Security benefits regardless of the amount tax debt. This is different from the 1996 Debt Collection Improvement Act which states that the first $750 of monthly Social Security benefits is off limits to satisfy non-tax debts. Fifteen percent of the Social Security benefit will be levied through the FPLP regardless of whether or not the remaining benefit sent to you is less than $750.
CAN YOU LIVE WITHOUT 15% OF YOUR SOCIAL SECURITY?
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 your tax debt in full.
Negotiate an alternative payment method (payment plan, partial payment plan, Offer in Compromise).
Be declared Currently non Collectible (hardship) status
File for an appeal
Ignore the Warning and do nothing
Have an experienced IRS Tax Lawyer do your Offer in Compromise and settle with the IRS.
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.
Your Social Security garnishment (tax levy) will remain in effect until the tax is paid off, or until you make other arrangements to have your tax levy stopped and released..
Don't Let the IRS Take Your Livelihood
If you're counting on Social Security benefits to live, you can't afford for the IRS just to waltz in and take 15% of your livelihood without a fight.
LOOK AT AN OFFER IN COMPROMISE AND SETTLE YOUR IRS TAX DEBT.
Depending on your situation, you may be able to qualify for a Offer In Compromise and end up paying the IRS significantly less than you owe.
FLAT FEE TAX SERVICE, INC. CLIENTS HAVE A 95% IRS SETTLEMENT SUCCESS RATE.
PER 2016 IRS STATISTICS, THE IRS APPROVED APPROX. 42% OF ALL OFFER IN COMPROMISE SUBMISSIONS.
YOU HAVE APPROX. A 30% CHANCE OF A SUCCESSFUL OFFER IN COMPROMISE IF YOU CHOOSE TO DO YOUR OWN.
FLAT FEE TAX SERVICE, INC.