En esta noticia
The Internal Revenue Service (IRS) can garnish up to 15% of retirement and survivor benefits from Social Security indefinitely. It does so through the Federal Payment Levy Program (FPLP) and applies to any retiree with unpaid tax debt, regardless of the amount of the monthly benefit.
Unlike other federal withholdings, the IRS is not required to leave a minimum of $750 per month to the affected person. The agency sends two official notices—CP 91 or CP 298—before carrying out the garnishment, and grants 30 days to regularize the situation.
Which Social Security benefits can the IRS garnish?
Not all Social Security payments are subject to the FPLP. Only retirement and survivor benefits can be withheld at 15%.
The following are excluded from garnishment:
- Disability benefits (SSDI): excluded from the FPLP since October 2015.
- Supplemental Security Income (SSI): protected by law.
- Benefits for minor children: outside the scope of the program.
- Lump-sum death payments: do not apply.
- Retirees below the poverty threshold: excluded since February 2011, according to the parameters of the Department of Health and Human Services.
What happens with the $750 limit?
Federal law protects the first $750 of the monthly benefit from non-tax debts. But that protection does not apply when the debt is owed to the IRS: the agency can withhold 15% even if the remaining amount falls below that threshold.
How does this measure affect retirees, and what should they do?
The impact is direct and with no expiration date: as long as active tax debt exists, the IRS will deduct 15% from each monthly payment. The withholding does not stop until the debt is paid off or a formal payment plan is agreed upon.
The retiree has 30 days from the last notice to act. During that period, they can appeal, request a payment plan, or negotiate an offer in compromise according to IRS Publication 594. Without a response, the deduction is applied automatically in the next payment cycle.