|
||||||||
Urgent News for Senior Citizens: When the IRS Calls, You`d Better Answer 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.` Taxpayers in California who seek professional assistance with their tax situation can locate Enrolled Agents in their area by calling toll-free 800-829-7765 or online at www.csea.org. Outside California, the Enrolled Agent referral number is 800-424-4339. Source/Resource: PRNewswire Press Release, Sacremento, California, April 30, 2001.
| ||||||||
|
|
||||||||
