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Andy4712, Tax Attorney
Category: Social Security
Satisfied Customers: 541
Experience:  Attorney working in social security.
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How much can the IRS instruct Social Security to deduct from

Customer Question

How much can the IRS instruct Social Security to deduct from my monthly Social Security deposit for federal taxes I owed from quite some time ago?
Submitted: 1 year ago.
Category: Social Security
Expert:  Andy4712 replied 1 year ago.
It is limited to 15%. My SSDI Be Withheld for Past Due Federal Taxes?Can My SSDI Be Withheld for Past Due Federal Taxes?. A major misunderstanding among many taxpayers is that the Internal Revenue Service is not allowed to garnish Social Security benefits. Unfortunately, this assumption is incorrect. Although there are additional limits placed on the amount the IRS is allowed to withhold from Social Security benefits, all but Supplemental Security Income are subject to IRS levies. It is imperative that you understand the process by which the IRS imposes its levies as well as what your rights are as a taxpayer.SignificanceThe IRS can levy the income of taxpayers who owe back taxes and have not paid those taxes or made arrangements to pay. All money gained as a result of the garnishment will be applied to the taxes owed. Social Security benefits are exempt from several types of levies, but not IRS levies.LimitsBased upon tax law guidelines, the IRS is limited to a maximum of 15 percent of your Social Security Disability Income. You can make payments in addition to the amount the IRS deducts, but it cannot levy above the 15 percent threshold. The levy on your SSDI will continue until the balance is paid in full. Your IRS balance due will be listed on the notice CP 91, which you will receive before the garnishment is initiated.RemediesIf you feel that the IRS levy on your SSDI benefits will create a hardship you, then you have the option of contacting the Taxpayer Advocate Service (TAS). You can request an advocate by calling(###) ###-####FREE. The advocate will serve as a liaison between you and the IRS and work to create a payment arrangement which eliminates your hardship. Also, if you feel the IRS amount due is incorrect or that you were not properly notified, then you can request an appeal with the Office of Appeals by completing Form 12153.ConsiderationsIn some instances, you can convince the IRS to lift your SSDI levy by speaking to an IRS customer service representative. Keep in mind that whether or not the levy will be lifted is at the discretion of the IRS representative. However, if you complete IRS Form 9465, Request for Installment Agreement, the withholding from your SSDI may be stayed as long as the installment agreement is in not in default. You can call the IRS at(###) ###-####FREE.CautionFederal levies are legal seizures of your assets. Although there is a limit to the amount the IRS can withhold from your SSDI, this does not preclude them from pursuing other avenues to pay off the back taxes. Whether or not the IRS will pursue other avenues to recover then debt rests on a number of factors including, but not limited to, how much you owe and likelihood that levying only your SSDI will payoff the debt.ReferencesInternal Revenue Service: The Collection Process