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Social Security Levy
All taxpayers with outstanding tax liabilities are subject to levy on assets & all income resources including Social Security benefits.The IRS can impose levy on the social security benefits via Automated Federal Payment Levy Program (FPLP) or by a manual levy (Non FPLP) Program.
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FIND OUTWhat is a Social Security Levy?
All taxpayers with outstanding tax liabilities are subject to levy on assets & all income resources including Social Security benefits.The IRS can impose levy on the social security benefits via Automated Federal Payment Levy Program (FPLP) or by a manual levy (Non FPLP) Program.
Federal Levy Payment Program (FPLP) – Under FPLP the IRS is able to levy 15% of the social security benefits each month
Manual Levy – Under Manual Levy there is generally no restriction to how much percentage of social security benefits can be levied each month by the IRS. There is however an exception for reasonable living expenses.
Once the Social Security levies are in place the IRS can withhold monies from the federal payments you receive. The levy may continue until the outstanding tax liability is satisfied or other payment arrangements are made or the debt becomes unenforceable by law.
The taxpayers should remember that social security benefits can be garnished to repay federal taxes due, outstanding student loan, child support and alimony . For other types of debts for example credit card debt, medical bills, personal loans , your social security benefits cannot be garnished to pay them.
What is included in a Social Security Levy?
The IRS can impose Levy on…
- Retirement Benefits
- Survivors Benefits
Exclusions to Social Security Levy
- As of October 5th 2015, IRS no longer levies SSA Disability Insurance benefits through the FPLP.
- Lump sum death benefits
- Benefits paid to the children
- Supplemental security income payments and payments with partial withholding to repay a debt owed to Social Security
- If your income falls below the federal poverty level guidelines
Am I subject to a levy?
If a taxpayer is subject to levy, they will receive a notice from the IRS .Before placing a levy on your social security benefits the IRS will issue a final notice of their intent to levy with rights to appeal. If the IRS does not receive any response from you then they will send you an additional notice called CP 91 or CP 298 ( Final Notice Before Levy on Social Security Benefits ) which basically explains that your social security benefits can be levied.
Can Social Security benefits be garnished for owed state tax?
The simple answer is No. The state does not have the broad powers like the IRS to garnish your social security benefits for the outstanding state tax liability. Exception to this if your social security benefits are directly deposited in your bank account, the state can levy your bank account for state taxes you owe, thereby indirectly garnishing your social security benefits.The taxpayer is this case is forced to prove which funds are attributable to social security benefits to claim the exempted funds.
How can we help with releasing a Social Security Levy?
We understand completely that social security garnishment can be financially devastating and painful for taxpayers and we can represent your case before the IRS to get the social security levy released ..Even if you have a impending notice from the IRS for Social Security Levy garnishment you should call our office right away since time is the essence here.
It is never a good idea to ignore the notices received from the IRS and you should take action right away. Taxpayers should take note when the request is made before the IRS for the release of levy it can take a month or two for release to be reflected on their Social Security Income.
We have years of experience in dealing with the IRS and can strongly present your case for the release of levy. Having a social security levy placed can certainly cause financial hardship. For more information please contact Allay Tax at 1-888-829-6667 or fill an online contact form.We are licensed to provide tax debt resolution services in all states.
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Reach out to us for a free consultation. Our tax experts can help you determine the best service to get relief from your debt.
