[chaz12]

Can the I.R.S attach your pension or S.S benefits? I saw a thing on T.V. that said they could.

[AtlantaTaxExpert]

The IRS can garnish both pension and Social Security benefits, but NOT IF such garnishments will reduce your financial situation below the poverty level.

In other words, if the pension and/or Social Security benefits are your ONLY source of income, and garnishing those benefits would result in you having to resort to welfare or other public assistance, then the IRS CANNOT perform the garnishment.

I have a client in just that circumstance. In the mid-1990s, she was a real estate agent who ran up some substantial tax bills with both the IRS and the state of Georgia. She then retired on Social Security and moved in with her sister. The only asset she owned was her car, which was financed at 15%. She had a part-time job as a receptionist at a real estate agency, but her income of salary and Social Security benefits was less than $20,000.

When the IRS and state came after her for the taxes, I filed notices to both that, due to her current income level and financial situation, her Social Security benefits were off limits for garnishment. I also stated that if they attempted to garnish the wages of her job, she would frustrate the garnishment effort by simply quiting the job, wait a few weeks, then get a similar job with a different employer.

The IRS responded by declaring her tax debt (about $22,000) uncollectible. It still is accruing interest, and they periodically request that she submit proof that her financial circumstances have not changed, but, other than that, they leave her alone.

The state of Georgia tried to bully her to pay them the $4,000+ she owed them, but I called and politely told them to back off. She had no assets they could legally seize, and states CANNOT touch Social Security benefits, so they had no legal way to collect the tax debt. Eventually, Georgia put her tax debt into uncollectible status as well.

She DOES file an annual tax return for both the IRS and Georgia, and the refunds are confiscated for the respective tax debts, but the refunds are so small that they do not even service the annual interest.