IRS Will No Longer Levy SSA Disability Insurance Payments

October 19, 2015

(Five Minute Tax Briefing, Thompson Reuters; Published October 2016)

The IRS can levy property owned by taxpayers who owe back taxes [IRC Sec. 6331(a) ]. Furthermore, under IRC Sec. 6331(h)(1) , with regards to certain specified payments, including SSA disability insurance payments, the IRS can levy (withhold) up to 15% of the payment each month until the debt is paid. Nevertheless, in a memo to its Collection staff, the IRS’s Small Business/Self-Employed (SB/SE) Division announced a new policy decision under which it will no longer levy SSA disability insurance payments beginning with payments payable after 10/3/15.

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