I owe the IRS approximately $15,000. I have filed for disability and am told that if my disability case is approved, that I

Asked over 1 year ago - Dallas, TX

should be receiving backpay effective from the date of my disability or when i filed for disability. Will the IRS keep my backpay if they have already filed a lien against me? From what I understand, a lien and a levy are two different things and they have not yet filed a levy against my checking account. Thank you.

Attorney answers (3)

  1. Arthur Harold Geffen


    Contributor Level 17


    Lawyers agree


    Answered . Hope the following helps

    Under the Federal Payment Levy Program (FPLP), the IRS can take 15 percent of your monthly SSDI benefits to make up for any unpaid federal taxes. Tax debt is different from non-tax debt in that the first $750 of your monthly benefit is not protected in this case. The IRS takes 15 percent, even if that means you are left with less than $750 per month.

    Before the IRS starts reducing your SSDI benefit, it will send you a final notice. Then, you have 30 days to either pay the tax or work out a payment agreement with the IRS. If you don’t work out a payment agreement in 30 days, the IRS then will start deducting 15 percent from your monthly SSDI benefit to pay the tax.

    The IRS may determine that you cannot pay the debt because of economic hardship or a lower income. In this case, it can temporarily hold off on trying to collect the debt. But the debt doesn’t go away. The IRS will continue to add on penalties and interest. You also can try to get an Offer in Compromise (OIC), where the IRS agrees to accept less than the full amount that you owe.

    A word of caution: The IRS has 10 years from the date they assessed the tax to collect unpaid taxes. If this deadline is coming up, the IRS can issue a “paper levy” to the Social Security Administration so that they can take all of your SSDI benefits to pay the tax.

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  2. Robert C. Alston

    Contributor Level 14


    Lawyers agree

    Answered . This is really a creditor question. You should speak with an attorney who specializes in IRS problems. Regarding possible back social security disability benefits, you of course must first win. Then, generally, if you have not filed an earlier application for SSDI (Social Security disability insurance) benefits you will only receive back monthly benefits for a maximum of 12 months prior to the date you apply for benefits, regardless of when you became disabled. SSI benefits begin in the first full month after your application for SSI benefits.

    Actual legal advice can only be provided by an attorney licensed in your jurisdiction, with experience in the area... more
  3. Clifford Michael Farrell

    Contributor Level 19


    Lawyer agrees

    Answered . The federal governmnet can and will keep some of your back due benefits to account for the debt you owe. The rest of your questions really need posted under creditors right questions.

    Good luck to you.

    The exact answers to questions like this require more information than presented. The answer(s) provided should... more

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