Can The IRS Levy My Social Security Benefits?

For whatever reason many taxpayers are asking the question, “Can the IRS levy my Social Security benefits?” At the risk of sounding like an attorney the answer to the question is this, it depends. Your Social Security benefit can be levied depending on how your Social Security benefit is defined as per Title II of the Social Security Act.

Social Security benefits fall under the Federal Payment Levy Program (FPLP) which subjects certain recipients of Social Security benefits to a 15-percent levy to pay a delinquent tax debt. This rule is not to be confused with the 1996 Debt Collection Improvement Act which protects the first $750 of monthly Social Security benefits from being garnished for non-tax debts.

If you receive Social Security benefits and have received a Notice of Intent to Levy it is very important that you take immediate action. In the vast majority of instances a taxpayer receiving Social Security benefits can be protected from a levy. The key is to act quickly. Call a tax professional!