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IRS
To
Grab
Social
Security
Checks
If
You
Owe
Them
April
30,
2001
--
In
news
that
is
certain
to
shock
and
dismay
some
seniors,
the
Internal
Revenue
Service
has
announced
its
intention
to
garnish
the
Social
Security
checks
of
debtors
who
are
at
least
six
months
in
arrears.
The
program,
set
to
begin
in
October,
is
authorized
by
the
1996
Debt
Collection
Improvement
Act,
which
gave
the
Treasury
sweeping
powers
to
go
after
debtors,
irrespective
of
age,
including
assigning
accounts
to
private
collection
agencies,
garnishing
salaries,
and
withholding
income
tax
refunds.
Social
Security
recipients
who
receive
$750
per
month
or
less
would
not
be
affected,
but
Treasury
intends
to
withhold
fifteen
percent
of
all
payments
above
that
amount,
except
for
payments
to
the
disabled
and
others
under
the
Supplemental
Security
Income
program.
While
more
than
230,000
IRS
debtors,
the
majority
of
whom
are
senior
citizens,
could
be
affected,
there
is
a
simple
way
they
can
protect
themselves
and
their
Social
Security
income.
``Most
Social
Security
recipients
will
probably
qualify
for
'Currently
Not
Collectible'
(CNC)
status
from
the
IRS
because
they
don't
receive
income
above
a
Hardship
level,''
points
out
Sal
Romo
Jr.,
EA,
President
of
the
California
Society
of
Enrolled
Agents
(CSEA).
Enrolled
Agents
are
tax
professionals
licensed
by
the
federal
government
to
assist
taxpayers
with
tax
planning,
preparation
and
representation.
``By
rule,
the
IRS
must
notify
the
prospective
garnishees
of
the
Service's
Intent
to
Levy;
taxpayers
are
put
on
notice
to
contact
the
IRS
to
explain
their
situations,''
Romo
adds.
The
first
55,000
delinquency
notices
were
sent
in
March,
with
a
second
wave
mailed
in
April.
``To
qualify
for
CNC
status,
the
taxpayer
MUST
respond
to
the
notice,
contact
the
IRS
or
a
tax
preparer
for
assistance,
and
explain
the
Hardship
situation,''
urges
Romo.
``Failure
to
do
so
puts
the
affected
taxpayer's
Social
Security
benefits
at
considerable
risk.''
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