En esta noticia
The Internal Revenue Service (IRS) can seize retirees’ Social Security payments and benefits from retirees with pending federal tax debts. The Social Security Administration (SSA) confirmed that the withholding operates automatically through the Federal Payment Levy Program (FPLP), with no possibility of appealing to the SSA.
The mechanism is backed by Section 6331 of the Internal Revenue Code. It applies to retirement, adult survivor, and disability (SSDI) benefits. The only protected payments are Supplemental Security Income (SSI) and survivor benefits paid to minors.
Which retirees will have their Social Security payments seized for IRS debts?
The IRS can withhold up to 15% of the monthly benefits of retirees with overdue federal taxes who have not responded to the agency’s notices. The deduction is applied automatically every month until the debt is paid or a payment agreement is formalized.
If the case was assigned to a collector, the levy can exceed 15%. When the retiree has other sources of income — pension or salary — the IRS could withhold the entire monthly Social Security benefit.
Benefits that the IRS can seize
- Retirement benefits
- Adult survivor benefits
- Disability benefits (SSDI)
Protected benefits
- Supplemental Security Income (SSI)
- Survivor benefits paid to minors
- Lump-sum death payments
What must retirees do to stop the Social Security levy?
The IRS activates the levy only after appeals. The agency sends prior notices and allows appeals, but if the correspondence does not arrive, payments can be reduced without the affected person noticing.
There are three ways to stop the collection: an installment payment plan, an Offer in Compromise if assets and income are below the required threshold, or Currently Not Collectible status, which suspends the levy when Social Security is the retiree’s only income.