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How Long Can the IRS Levy on Social Security?

Did you know that the IRS can levy a portion of Social Security payments to satisfy tax liabilities? If the taxpayer does not make full payment, enter a payment agreement, or an offer in compromise the IRS has the administrative right to levy without a court order.

What makes this interesting, deeply concerning, or mildly terrifying is that falls into one of two types of levies – one where property can be seized or the second known as a continuous levy. A continuous levy stays enforced until it reaches a statute of  limitations or the tax assessment is paid in full. The IRS might levy against salary and wages or they might levy against a portion of federal payments, e.g. Social Security Benefits.

The difference here for something like Social Security is that because, this type of benefit payment is scheduled to occur at a certain date for a specified amount or in other words it’s fixed. Dismissing a tax liability can possibly result in a levy. The Key is Seeking help for an arrangement prior to the levy.  If a tax levy is served from the IRS to Social Security for a specific beneficiary, there is basically no expiration until the liability is resolved.

So the question becomes, what can one do if they encounter a tax liability that they cannot immediately resolve? First, do not ignore the issue, if you don’t clearly understand IRS correspondence, you can go to a Tax Professional that is familiar with arranging for payments or working with Offers in Compromise.

Preserve your sanity and your Social Security Benefits.

Suncoast Social Security Advisors takes the mystery out of retirement benefit planning for single, married, divorced and self-employed.

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