Can the Federal Government Garnish My Social Security Disability Check?

Final Notice

Before the IRS may issue a garnishment against your Social Security benefits, you must receive IRS Notice CP-91 or CP-298. You only need to receive one of the letters; either one is a Final Notice of Intent to Levy. The IRS must issue a final notice and allow you time to respond to the notice and explain why levy against your Social Security Disability income would be detrimental. In most cases, taxpayers receiving Social Security income experience financial hardship when a garnishment occurs. You have 30 days from the date of the final notice to file an appeal with your explanation.

An appeal form is enclosed with your final notice. The appeal form is called a Request for Collection Due Process or Equivalent Hearing, and may also be referred to as CDP form. Complete this form and send it to the IRS address from where the final notice was sent. This information is included in the final notice letter. In addition to the appeal form, include a copy of the final notice. Because the form is extremely time sensitive, mail it by certified mail and keep copies of the documents you send with your certified mail receipt. If the IRS issues a garnishment even though you sent an appeal on time, the garnishment may be released if you can prove the documents were sent within the 30-day time frame.

The best way to prevent future collection issues, such as garnishments or levies against your Social Security Disability income, is to formalize a payment plan or uncollectible status with the IRS. Request that the plan to resolve your account cover all the periods for which you owe tax. Most taxpayers who receive Social Security income qualify for uncollectible status. This status means you do not earn enough money to pay your bills each month, or have very little money left over after your monthly bills are paid. Being in uncollectible status means you still owe the taxes, but the IRS cannot legally attempt to collect the balance from you. If you do not qualify for uncollectible status, the IRS may offer a monthly payment plan to you instead. Being formally placed on either of these alternative plans protects you from enforced collection action.

For all uncollectible status requests, the IRS requires a full financial disclosure statement and evidence that your income and expenses are what you claim them to be. The IRS financial statement is Form 433-A. If you owe more than $25,000, the IRS may also request the financial statement to establish a payment plan. You can request an uncollectible status or payment plan by contacting the IRS at 800-829-1040, or visiting your local IRS office. If you call the IRS, an agent will take your financial statement information over the phone and give you an address of where to send your supporting documents.