Can the IRS take any of my disability to pay back @ $16,000 that I owe them? They want me to pay $335 a month to them. Can I have this lowered at all? Can I just tell them that I want to pay $100 (or less) a month? Thank you for any assistance you can give me.

Can the IRS take any of my Social Security Disability?

No, they must follow the law like everyone else..

Federal law makes Social Security benefits exempt from levy, garnishment, and assignment- 42 USC 407(a) states. "In general the right of any future payments under this sub chapter SHALL NOT be Transferable or assignable. AND NONE of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levey, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law".

I think under certain circumstances, ss payments can be garnished, especially direct deposits to a joint account, I would seek professional advice.

No, as long as you can prove the funds are from Social Security.


Safe from Garnishment



Federal law makes Social Security benefits exempt from levy, garnishment, and assignment- 42 USC 407(a) states. "In general the right of any future payments under this sub chapter SHALL NOT be Transferable or assignable. AND NONE of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levey, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law".

This means that even if a creditor or debt attorney, collection agency has a judgement against you they CAN NOT garnish your SS payments nor can they take the money from you after it has been paid to you; for example, the portion of your bank account that is attributable to your SS benefits is EXEMPT from LEVY OR ATTACHMENT

Mr. Yet, sorry about the spelling, would that mean they would take your money while there checking your proof, then give it back?

Information at SOCIAL SECURITY DISABILITY SECRETS: SSD SSI TIPS ADVICE TO WIN BENEFITS WHEN YOU APPLY & APPEAL FOR SSDI (SSA LAWYERS, ADVOCATES)


Monday, July 03, 2006
Can Social Security Disability benefits be garnished ?

Yes, social security disability benefits can be garnished. However, garnishment can only be carried out in a few specific scenarios. According to the social security administration, SSI benefits cannot be garnished, while social security disability benefits may only be garnished to enforce child and alimony obligations, pay federal tax and debts owed to the IRS, and pay debts owed to federal agencies.

So, if you owe taxes or IRS penalties, you can have your social security disability benefits garnished. If you have alimony or child support obligations, you can be garnished. If you have a delinquent student loan, your SSD benefits can be garnished.

Creditors, however, are not entitled to garnishment provisions for social security disability benefits, so SSD recipients are protected from credit card companies, finance companies, auto lenders, and other lenders.

Here's some of the reason I suggested an expert, really can't tell what's right

Karen:

Yes, the IRS CAN garnish Social Security payments, but NOT IF that is your only source of income, or if the garnishment will cause you undue financial hardship.

You have not provided enough definitive information as to your overall financial situation for me to specifically advise you. However, in general, if your disability payments from Social Security is either your ONLY source of income or, even if combined with other sources of income, is required to maintain your standard of living to a certain minimum level (which varies depending on WHERE you live in the U.S.), these payments CANNOT be garnished by the IRS.

I have a client who, at last check, owes about $28,000 to the IRS (it goes up every year as interest accrues). Being over 65, she draws a monthly SS check, plus works part-time as an office worker. I have to periodically prepare a statement of net worth to show that her combined Social Security and work income barely keep her above poverty level for the Atlanta area. With that statement on file, the IRS CANNOT touch her monthly Social Security check.

Now, she does file an annual tax return and usually shows a small refund being due, which she never gets as it is applied to her back taxes.

I suggest you contact a local tax professional to see about filng the necessary paperwork to have your tax debt declared "uncollectible". That is what the IRS has done with MY client.

An Offer in Compromise is not worth the time, effort and expense tax professionals do not work for free, and the IRS requires money up front with every Offer In Compromise), as you apparently have NO means at all of EVER paying this debt. The $100 per month you are proposing would not even service the interest on the $16K debt.

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I stand corrected on IRS and SSI.

Through the Federal Payment Levy Program (FPLP), Social Security benefit payments outlined in Title II of the Social Security Act, Federal Old-Age, Survivors, and Disability Insurance Benefits, are subject to the 15-percent levy, to pay your delinquent tax debt.

Benefit payments, such as lump sum death benefits, benefits paid to children, and special benefits for persons aged 72 and over by 1971, however, will not be included in the FPLP. Additionally, Supplemental Security Income (SSI) payments, under Title XVI, and payments with partial withholding to repay a debt owed to Social Security will not be levied through the FPLP.

Before your Social Security benefits are included in the FPLP, we will send you a final notice of our intent to levy, with appeal rights, if one has not already been issued. If we don't hear from you, or if you have already received this notice, we will send you an additional notice CP 91 or CP 298, Final Notice Before Levy on Social Security Benefits, explaining that your Social Security benefits may be levied. See Tax Information for Appeals for additional information about your appeal rights.

You have 30 days from the date of this notice to make arrangements to pay your tax debt before we begin deducting 15 percent from your monthly benefit. See Topic 201, The Collection Process, Publication 594, Understanding the Collection Process, and Publication 1, Your Rights as a Taxpayer, for additional information.

Because the FPLP is used to satisfy tax debts, the IRS may levy your Social Security benefits regardless of the amount. 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 the remaining benefit sent to you is less than $750.

It seems the IRS can do what ever they want even levy a trust account , which Social Security is.

I reiterate: If you can show that a levy on your SS benefits will significantly degrade your standard of living to below the poverty level for your locale, you can STOP any levy on your benefits.

This dude is awesome!!