The IRS can seize your Social Security, Social Security Disability (SSDI) and/or Veteran's check should you owe the IRS for a back tax debt. It is not difficult for the IRS computer system, Automated Collection System (ACS) to match up you delinquent tax information with the Financial Management Systems (FMS) which is the computer that sends out your checks. It's as simple as one (1) computer talking to another computer.
IRS Authority to Levy your Social Security benefit or Veteran's Pension:
Through the Federal Payment Levy Program (FPLP) the IRS can legally seize your property to satisfy a tax debt. A struggling taxpayer who has an outstanding tax debt is subject to a levy on income and assets. Of course, the IRS must send out a notice to you. Whether you actually receive the notice is irrelevant as the IRS is only obligated to send the Notice of Intent to Levy out to the last known address. The IRS has no responsibility in you receiving the Notice to Levy. Once the IRS notice is sent, you have thirty (30) days of the date of the notice to either pay your delinquent tax debt or to contact the IRS. If you cannot pay your past due tax debt in full, we suggest you have a 3rd party contact the IRS on your behalf. It is almost never a good idea to represent yourself before the IRS.
Once the IRS levy is in place, the IRS will withhold monies from the federal payments that you receive. Federal payments include your Social Security, Social Security Disability (SSDI) and Veteran's Pensions. The IRS levy will be continuous which means it will be active until your entire income tax debt is paid in full, other arrangements are made, or the Statute of Limitations runs out and your tax debt is unenforceable.
How Much Can the IRS Take Under the Federal Payment Levy Program (FPLP):
Every taxpayer who has an outstanding income tax debt can be subject to an IRS levy on assets and income sources which includes your Social Security, Social Security Disability (SSDI) or Veteran's Pension. There are two (2) ways the IRS may levy upon your Social Security or Veteran's check:
1. The Automated Federal Payment Levy Program (FPLP) which allows the IRS to seize up to 15 percent of your Social Security or Veteran's check each and every month. This won't leave you with much.
2. Manual Levy (non FPLP levy) - The IRS has no restriction to how much they (the IRS) can take from manual levies. The IRS is supposed to take into account money needed by a taxpayer for reasonable living expenses. Do not count on the IRS to be sympathetic. The IRS will leave you with barely enough to eat.
The Problems in Releasing a Levy on your Social Security or Veteran's Pension:
The capable IRS tax relief team at Flat Fee Tax Service, Inc. can have your IRS levy stopped and released. Being the nationwide leader in having our clients levies released is not a surprise, but the problem is this: You are dealing with computers talking to computers. Once your levy is released, the IRS computer needs to inform the Financial Management Systems computer to stop taking money from your Social Security or Veteran's Pension. Do not think for a second that the IRS will not try and squeeze another levy payment from you. That is another reason why you should always have representation when dealing with the IRS.
What Can be Done for You to Stop the Levy and Settle with the IRS:
The IRS Tax Attorneys at Flat Fee Tax Service, Inc. are expert at having an IRS levy stopped and released. In fact, there isn't a better tax resolution company at having a levy released. We stand by that statement. We are simply the best tax resolution company when it comes to saving your paycheck, your Social Security benefit or your Veteran's check.
Once your IRS levy is stopped, you have three (3) choices available to you:
1. Enter into an Installment Agreement with the IRS - Before you choose entering into a payment plan with the IRS, we recommend that you look at lowering your delinquent tax debt as much as possible prior to agreeing to pay back anything. Why should you pay more than you need to? Any novice can agree to a payment plan with the IRS. It does take any special skill or knowledge to say yes to an Installment Agreement with the IRS. But, before you agree to anything, call us for a free and confidential consultation.
2. File for a Fresh Start Offer in Compromise - The IRS has expanded their IRS settlement program which is now called the Fresh Start Initiative. Due to the economic times we are living in, there are so many struggling taxpayers, who have delinquent tax debt, that the IRS has been forced to loosen its eligibility and qualification requirements for the Offer in Compromise program. If you are on a fixed income such as Social Security or you are receiving a Veteran's pension, you would be foolish not to take advantage of the IRS Fresh Start settlement program. Despite the new expanded rules to settle, the IRS is still "the IRS." The IRS will try and reject as many settlement Offers as they can based on not "dotting an i" or "crossing a t." If your Offer in compromise paperwork is lacking for any reason, the IRS will reject your settlement as "non-processable." You will always be better off using an experienced IRS tax relief team that has a track record of successful Offer in Compromise settlements.
3. Be declared to be Currently not Collectible - If you cannot pay back anything to the IRS, the IRS can delay enforcement collection of your delinquent tax debt if you are declared to be Currently not Collectible. The IRS will stop all collection activity for a period of time. At the end of that period, the IRS will check back in and you will need to give a current assessment of your financial condition. If you continue to be unable to pay the IRS, your Currently not Collectible status will continue. Note, being Currently not Collectible is not a settlement. The IRS will place a federal tax lien against you. A federal tax lien is not an IRS levy, so your Social Security or Veteran's check will be left alone but a federal tax lien will show up on your credit profile. If you own a home, there will be a lien attached to it. If you do not plan on selling your home, the lien doesn't much matter. IRS penalties and interest will continue to accumulate and be added to your delinquent tax debt. The IRS will send you notices periodically. Seeing your tax debt get larger may panic you into calling the IRS and entering into a payment plan. Don't do something foolish. The Statute of Limitations will continue to run while you are declared to be Currently not Collectible. At the end of the Statute of Limitations regarding your particular tax debt, your tax debt will be unenforceable. It is quite possible that you may never pay anything toward your past due tax debt.
Call today for your free and confidential consultation. Let us put an action plan together for you that will stop the seizure of your Social Security benefit or Veteran's Pension through an IRS levy. After your IRS levy has been released, the next step is to settle with the IRS for as much as possible. Take advantage of the IRS Fresh Start Initiative. Take the opportunity to settle with the IRS for less.