Can Social Security or SSDI Wages Be Garnished?

– Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows Social Security benefits and SSDI to be levied to collect unpaid Federal taxes. Your ability to pay any past due Taxes are impacted because you have a fixed income. But you may need Representation.

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. 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 or not the remaining benefit sent to you is less than $750.

IMPORTANT TO KNOW:

Manual IRS Levy (100%). This is not a “TYPO”. The IRS is NOT limited by IRC 6331(h) to taking 15% of a taxpayer’s Social Security benefits. The IRS can issue a manual IRS Levy that can continuously take all of your social security benefits underInternal Revenue Code section 6331(a), which permits an IRS Levy on all wages, salary or other income (which would include Social Security and Disability). The 15% automatic IRS Levy provision is a supplement to the manual IRS Levy power. The IRS can chose the manual approach if it deems fit and attempt to collect more than the automated 15%.