As of October, 15th 2015, the IRS announced a policy change indicating that SSA Disability Insurance Benefits would no longer be subject to levy through the Federal Payment Levy Program. Prior to the policy change, if you owed back taxes and were receiving social security disability benefits, the IRS could levy 15% of your benefits each month to apply to your tax liability. The policy change does not affect other social security benefits (Federal Old Age and Survivors Benefits), it only applies to disability benefits. Levies on all other sources of income and assets remain the same. If you are receiving social security disability benefits and those benefits are being levied by the IRS for a past due tax debt, you should contact the IRS collections division or the taxpayer advocates office and request an immediate release of levy.
If you need assistance with your taxes or tax problems, contact Brad Ritter, CPA at 919-780-7350.