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All taxpayers with outstanding tax debts are subject to a levy on assets and income sources, including Social Security benefits. There are two ways the IRS may levy upon your Social Security benefits – via the automated Federal
Payment Levy Program (FPLP) or by a manual (non-FPLP) levy. Under the FPLP, the IRS is able to levy up to 15 percent of your Social Security benefits each month; there is no similar restriction on how much the IRS can receive
from manual levies. There is an exemption amount, however, for reasonable living expenses.
If you would like the federal booklet on this here is a linkhttp://www.irs.gov/pub/irs-pdf/p4418.pdf
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Did you need more clarification on this?
If you have no other emans of income and this would present a finacial hardship you can request to be placed on Currently Not Collectible status.
The debt does not go away and the interest continues but your benefits would not be levied.
The system advises that you are In CHAT can you respond and let me know.
What would be the reasonable living expenses?
The IRS looks at all your expenses (not vacations and any frivolous items) home, food, utilities, car payments.
If your expenses are right at what you are receiving then they can reduce the % for levy.
Each case is different
There are national standards though that they look to.
National Standards have been established for five necessary expenses: food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous.
Do I call IRS and do they send me a form to fillout, How ids this done?
You would want to call the number on the last statement you received. The general number(NNN) NNN-NNNN can be used but you would need to get transferred to an agent and if you call the number on your last statement you would get faster service.
You would want to simply state your position and why you were not able to continue with your payments.
Do I tell them i am requesting a hardship consideration?
Yes, that would be a good word to start with. Financial hardship would let them know the direction os the conversation
My only asset is a car that is 2001 Rav 4. it is in poor condition and the tires are very bad, i only use it for Dr. Visits and Groceries. Will I be expected to sell it and give them the proceeds/
NO that is not a general procedure. If the iRS asks about your assets (car) it would only be to see the valuation for calculating your situation
You will want to look over all the following befor you call
Among the areas where the IRS can provide assistance:
This way you will know the offers that the IRS can give you and understand under which you may best be served.
Thank you for your information