When we retire, we expect to be able to enjoy our golden years. After decades of hard work, that isn’t too much to ask, is it? According to the IRS, it is. The federal agency that is responsible for collecting tax revenues can garnish the Social Security checks of taxpayers who are in arrears. How is this possible?
Perhaps the IRS is hard up for cash, because it seems to us that this relatively new tool is antithetical to the Social Security program as it was originally intended. These benefits were meant to lift retired people out of debt, not to push them further into it by withholding retirement checks. But that is exactly what the IRS is doing with their procrustean collection programs.
By the Numbers
Ninety percent of Americans 65 and older receive Social Security checks. These payments represent about 41 percent of the income for senior citizens in America (source: Social Security Administration). Once again, the IRS does not seem to care that elderly people depend on these checks. According to recent guidelines, people who receive more than $750 per month from Social Security and have an outstanding tax debt are fair game. The IRS has been authorized to withhold 15 percent of these benefits (source: Internal Revenue Service).
Call Tax Masters for tax help today!
Before the IRS begins the tax garnishment process, they must notify suspected tax debtors. However, we know for a fact that many Americans are hit with tax levies without proper notification. This is because the IRS does not actually have to hand-deliver the notice; they simply have to send it to the person’s last known address.
What can we do? Anyone who owes back taxes should contact an experienced tax advisor today. A talented tax advisor can help clients file all back taxes and will try to negotiate an affordable tax payment plan that includes manageable monthly installments.
Tags: Back Taxes, tax advisor, tax garnishment, tax help, tax levies, tax payment plan