The IRS has the authority to levy a portion of your Social Security benefits if you have unpaid tax debt, and this can come as a shock to many retirees and disabled individuals. While Social Security income is often seen as essential for basic living expenses, the IRS can still garnish a significant portion through the Federal Payment Levy Program. Understanding how these levies work and what you can do to stop them is crucial, especially if Social Security is your primary source of income.
How the IRS Levies Social Security Benefits
Under the Federal Payment Levy Program, the IRS can take up to 15 percent of your Social Security benefits. This includes retirement benefits, survivor benefits, and disability benefits paid through the Social Security Administration. The levy continues month after month until the IRS releases it or you resolve your tax debt. For many people, even a small reduction in benefits can create financial hardship, especially when living on a fixed income.
IRS Notices Required Before a Social Security Levy Begins
Before the IRS levies your Social Security, they must send several notices, including the Final Notice of Intent to Levy. Once this notice is issued, you have 30 days to take action. If you do not respond, the levy begins automatically and continues without additional warnings. Many taxpayers do not recognize the importance of these notices and only realize the severity of the situation after their benefits are reduced.
Using Currently Not Collectible Status to Stop a Social Security Levy
Fortunately, there are ways to stop or prevent a Social Security levy. One of the most effective is requesting Currently Not Collectible (CNC) status. If you can demonstrate that the levy would prevent you from paying for basic living expenses such as food, rent, and medical care, the IRS may classify you as unable to pay. Once granted, CNC status stops most levies and prevents new ones from starting.
Another option is entering into a payment plan or installment agreement. While this may sound counterintuitive for individuals living on fixed income, even a small monthly payment may satisfy the IRS and result in the release of the levy. It’s important to calculate what you can realistically afford before agreeing to any plan. The IRS may also accept an Offer in Compromise if you meet strict financial criteria.
In some cases, taxpayers may file a Collection Due Process appeal to challenge the levy. This halts levy action while your case is reviewed, giving you time to propose an alternative resolution. You must act within the deadline, however, because appeals filed late do not stop ongoing levies.
Special Protections for Supplemental Security Income (SSI)
The IRS also offers additional protections for Social Security recipients who receive Supplemental Security Income (SSI). Benefits under SSI cannot be levied by the IRS under any circumstances. If you receive SSI and have had your payments reduced, it may be due to a misunderstanding or administrative error, and you may be able to correct it quickly.
Final Thoughts
Social Security levies can create serious financial strain, but you aren’t without options. Contacting the IRS early, understanding your rights, and exploring all available resolutions can help you protect your income and stabilize your financial situation. Delaying action often limits your choices and allows the levy to continue indefinitely. Reach out to us at the Law Office of Steven N. Klitzner so that we can ensure the IRS applies the correct protections and stops the levy as quickly as possible.
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
