Many people believe that once they reach retirement, they’re protected from the IRS. Unfortunately, that’s not always true. If you owe back taxes, the IRS can and does take a portion of Social Security benefits, pensions, and retirement account withdrawals.
At Back Tax Rescue, we’ve helped retirees and seniors across Gwinnett County protect their income from IRS garnishment. In this guide, you’ll learn how the IRS collects from retirement income, what your rights are, and how to stop or avoid garnishment with the right strategy.
💸 Can the IRS Garnish Social Security Income?
Yes. Under the Federal Payment Levy Program (FPLP), the IRS can legally take a portion of your Social Security benefits to recover unpaid tax debt.
Here’s how it works:
- The IRS can garnish up to 15% of your monthly Social Security payment
- It applies to retirement benefits—not Supplemental Security Income (SSI)
- The garnishment continues until the debt is paid or resolved
📌 There’s no requirement for a court order. The IRS only needs to send proper notice—then they can levy automatically.
🔍 How Is Social Security Garnishment Triggered?
Before garnishment begins, the IRS must send you a Final Notice of Intent to Levy (Letter 1058 or LT11), giving you 30 days to respond. If you do nothing, they can initiate the levy through the FPLP.
🔒 Can the IRS Garnish Other Retirement Income?
Yes, the IRS can also collect from:
- Pensions
- IRA and 401(k) distributions
- Annuities
- Roth IRA withdrawals (if taxable)
They can levy retirement accounts in the same way they can seize a bank account—especially if you’re already taking distributions.
If you’re not yet withdrawing funds, the IRS can issue a levy and wait until funds are accessed to seize them.
🧓 Does This Affect All Retirees?
Not necessarily. You may be more at risk if:
- You owe over $10,000
- You’ve ignored multiple IRS letters
- You’ve defaulted on an installment agreement
- You’ve failed to file taxes for multiple years
- You’ve received an LT11, CP504, or Final Notice of Intent to Levy
✅ However, you can challenge or avoid garnishment if you respond in time and seek resolution.
💼 What You Can Do to Stop Social Security Garnishment
✅ 1. Request a Collection Due Process (CDP) Hearing
If you’re within the 30-day window after receiving a levy notice, filing for a CDP hearing immediately halts garnishment.
✅ 2. Set Up an Installment Agreement
Once you enter a payment plan, the IRS typically pauses all levies—including Social Security.
✅ 3. Apply for Currently Not Collectible (CNC) Status
If you’re on a fixed income and can’t afford payments, you may qualify for hardship status that stops all collections.
✅ 4. Submit an Offer in Compromise
You may be able to settle your IRS debt for less than the total owed—if you meet eligibility requirements.
⚖️ What If Garnishment Has Already Started?
Even if the IRS is already taking a portion of your Social Security or retirement income, you’re not stuck. We can still:
- File for levy release
- Request CNC status
- Apply for penalty abatement
- Negotiate a manageable resolution plan
- Appeal IRS actions if they’re causing financial hardship
🧠 Example: Social Security Garnishment in Action
Sandra from Peachtree Corners received Social Security and had $42,000 in unpaid taxes from self-employment over 15 years. The IRS began garnishing 15% of her monthly check.
She called Back Tax Rescue. We reviewed her income, expenses, and assets, and helped her qualify for Currently Not Collectible status. Within 21 days, the garnishment was removed, and her full benefit payments were restored.
👨💼 How Back Tax Rescue Can Help
We work with retirees, veterans, and low-income seniors across Gwinnett County to:
- Stop or prevent IRS garnishments
- Apply for hardship status or settlements
- Communicate directly with the IRS on your behalf
- Protect your essential income and peace of mind
Whether you’re in Lilburn, Sugar Hill, Snellville, or anywhere nearby, we’re here to defend your retirement.
📞 Don’t Let the IRS Cut Into Your Retirement
If you’re receiving Social Security, living on a fixed income, or worried about garnishment—don’t wait for another check to be reduced.
📞 Call Back Tax Rescue: 470-699-1187
📧 Email: info@backtaxrescue.com
🗓️ Schedule a Free Retirement Tax Relief Consultation »
You earned your retirement. Let us help you keep it.
