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    WorriedinFL's Avatar
    WorriedinFL Posts: 1, Reputation: 1
    New Member
     
    #1

    Aug 3, 2018, 07:05 PM
    Can the IRS levy my Disability BACK PAY for deliquent taxes?
    I owe the IRS from the tax year 2013. I stopped working that year and became disabled. I recently won my disability claim and am owed almost two years of back pay (which is a substantial amount) I live in Florida and have been homeless for over a year awaiting my hearing. (I was denied twice) I haven't had any "gainful" employment and SSDI is my only source of income. I've had no bank accounts or no assets (up until now-a checking account for my direct deposit)
    Can the IRS just levy my back pay without notifying me first? I'm willing to work out a payment plan with them, but even $100 a month would be difficult to uphold.
    What should I do? Should I contact the IRS first or should I allow them to contact me. I haven't received any benefits yet, only a letter informing me that I received a "fully favorable" decision on my case from the judge. I'm still awaiting my award letter from SSDI. I just started receiving SSI benefits (different program) and I read on another thread that those funds are not able to be garnished or am I mistaken on the entire thing?

    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Nov 8, 2018, 08:17 AM
    If you are owed almost TWO years of disability, you WILL be getting a large lump-sum settlement. It is likely that the IRS WILL make a claim against that payment for your 2013 income taxes due.

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