CPA Tax Musings: Social Security won’t seize tax refunds to collect old debts

If you owe the Social Security Administration an overpayment of social security benefits this year, you are in luck.  Social Security will no longer seize income tax refunds to repay these debts.  See the details in this article in SFGate by Stephen Ohlemcher:

http://www.sfgate.com/news/politics/article/Social-Security-won-t-seize-tax-refunds-to-6010047.php

Apparently some of these debts were from decades ago when beneficiaries were children.  When members of Congress started complaining about this, the acting Social Security Commissioner suspended the program.  Just remember that these debts are still out there and will be collected when beneficiaries are starting to collect Social Security themselves.

  Social Security AdminDollar Stopsign     For financial,  accounting and tax musings,

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