View Full Version : Can Expired Federal Taxes be recovered through Levy of Social Security ?
uga1979
Jul 30, 2012, 09:23 AM
Can Federal Taxes which have expired by Statute be collected later when you retire by levy of Social Security Retirement benefits ?
joypulv
Jul 30, 2012, 09:45 AM
Social Security Retirement can be garnished or levied, usually at some low % of your check.
Please explain what 'expired' federal taxes means. I know of no such statute.
ebaines
Jul 30, 2012, 09:51 AM
Please clarify what you mean by "expired by statute." If you owe back taxes based on a tax provision that was in place previously but now no longer exists the answer is yes, your SS can be garnished. Provisions of the tax code change all the time, but not retroactively - whatever you may owe for previous years' taxes is still owed. But again - if you could provide more specifics it would help us understand your question better.
uga1979
Jul 30, 2012, 12:38 PM
These are Federal Taxes including SE Taxes from yrs 96-99 which have run the 10 year time frame from date of filing. I had a Federal Tax lien in place for those years and the IRS just sent me in April of 2011 that this Lien has been released.
It is my understanding that Taxes owed yet not able to pay will expire under the Statute of Limitations. In other words these Taxes do not go on forever along with Interest & Penalties.
uga1979
Jul 30, 2012, 12:39 PM
These are Federal Taxes including SE Taxes from yrs 96-99 which have run the 10 year time frame from date of filing. I had a Federal Tax lien in place for those years and the IRS just sent me in April of 2011 that this Lien has been released.
It is my understanding that Taxes owed yet not able to pay will expire under the Statute of Limitations. In other words these Taxes do not go on forever along with Interest & Penalties.[/QUOTE]
ebaines
Jul 30, 2012, 12:53 PM
the IRS just sent me in April of 2011 that this Lien has been released.
If the lien is released that's a good thing as you no longer have a lien on your property.
It is my understanding that Taxes owed yet not able to pay will expire under the Statute of Limitations. In other words these Taxes do not go on forever along with Interest & Penalties.
The lien may become "unenforceable by reason of lapse of time" - for taxes assessed on or after November 6, 1990, the lien generally becomes unenforceable ten years after the date of assessment. It appears that's what happened in your case, and hence they released the lien on your property. As for whether they will levy your SS payments now that the lien is released - I believe the answer is no, since levies are subject to the same 10-year period as liens. This assume that your tax filings back in 96-99 were not fraudulent, because there is no time limit for the IRS to collect taxes in case of returns that are false or fraudulent with intent to evade taxes.