What’s happening
The IRS has a computer program that takes part of certain federal payments to pay down tax debt. That includes Social Security. It takes 15% of each monthly Social Security retirement or survivor check. This is called a Social Security levy.
Before it starts, the IRS is supposed to send a warning letter, usually one called a CP91. But since the program runs on its own, many people don’t notice until their deposit comes in short. That’s even more likely if the letters went to an old address.
What the IRS can do, and what it can’t
The program takes part of Social Security retirement and survivor checks. It doesn’t touch SSI. It also no longer takes Social Security disability checks automatically. People with income at or below the poverty line are left out of the program too.
The IRS can also send a separate order that isn’t limited to 15%. That’s one more reason to deal with this early.
And the IRS has to stop if taking the money leaves you unable to pay basic bills. For people on a fixed income, that rule matters a lot. But the IRS won’t apply that rule for you. Someone has to show them, with real numbers.
How we fight it
We check whether you owe it at all. Some of these debts come from old tax returns the IRS filed for you. Others include penalties that should come off. Retirees also often have a debt from one odd year, like a year they took money out of a retirement account. Sometimes that was taxed the wrong way.
We show the IRS your real bills. If you’re coming up short on rent, utilities, food, or medicine, we lay that out for the IRS in the form they use. Then we push for the IRS to stop.
We look for a fix that lasts. For many people on a fixed income, the best answer is getting the IRS to stop collecting for now, or settling the debt for what’s realistic. We’ll tell you honestly which one fits.
