When someone owes a significant amount in back taxes to the Internal Revenue Service (IRS) that may require years of payments, a question commonly arises – Can the IRS garnish my Social Security check? The answer is yes. In fact, the IRS is one of the only federal agencies that is allowed to access your Social Security funds, in the event you owe back taxes.
In contrast, garnishment of Social Security checks is generally prohibited when it comes to private creditors. Nevertheless, since the Federal Government is not your standard creditor, it authorized the IRS to access Social Security funds when a recipient has a delinquent tax bill.
Amount the IRS is Allowed to Garnish
According to Title II of the Social Security Act and Section 6331 of the IRS Code, the taxing agency is allowed to perform manual levies on Social Security income or use the Federal Automated Payment Levy Program. Under the Federal Payment Levy Program, the IRS can garnish up to 15 percent of your Social Security payment.
If, on the other hand, you are being garnished manually, the Social Security Administration will typically establish a minimum monthly allotment for you to take home. The remainder will go to the IRS.
Overview of the Social Security Garnishment Process
Before the IRS begins garnishing your Social Security checks, they will typically send multiple letters informing you of the back taxes you owe to the Federal Government. For example, you probably received a CP-14 form stating how much you owe and when that amount is due. You will subsequently receive a CP-91 or CP-298 form that declares the agency’s intent to garnish your Social Security checks. You will be provided 30 days from the issuance of the final notice to repay the outstanding debt.
How to Stop the IRS from Garnishing Your Social Security Checks
If you are looking for ways to stop the IRS from garnishing your Social Security checks, here are some options worth considering:
- Repay the full amount owed. If you are able to pay the balance in full, you can request that the IRS cease its garnishment efforts.
- Establish a Partial Payment Installment Agreement (PPIA). Under a PPIA, some of the amount owed will be deemed “expired” while you are responsible for paying the remainder. Please note that not everyone qualifies for a PPIA and you will be required to disclose financial documents to the IRS.
- Make an Offer in Compromise. Similar to a PPIA, an Offer in Compromise is effectively a negotiated settlement on the amount owed. You would offer to make a lump-sum payment for a percentage of the amount owed. Also similar to a PPIA, you would need to submit financial documents to the IRS for such an offer to be considered.
Have Questions About How to Secure IRS Tax Debt Relief? Contact Anderson Bradshaw Tax Consulting Today
If you’ve been notified by the IRS that they intend to garnish your Social Security benefits, then now is the time to take proactive measures to protect your Social Security checks. Contact the experienced and highly reputable tax relief consultants at Anderson Bradshaw for assistance. Our firm will assess your situation and offer guidance on different tax debt relief strategies.
Holding over 32 years of experience in the industry, our expert tax relief professionals at Anderson Bradshaw Tax Consulting have handled a wide variety of tax situations, including Social Security garnishment. For further information or to schedule a consultation, please contact Anderson Bradshaw Tax Consulting at 877.550.3911 or visit www.AndersonBradshawTax.com to learn more.
