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Thread: IRS Levy on ssdi Help please

  1. #1
    Senior Member NEWPARA's Avatar
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    Irs levy on disability Question?HELP PLEASE!

    I recently had the Irs put a Levy on my disability.Is there any other place I can turn to for finacial aid?Im a single parent and disability isnt even enough to pay rent ,bills ect.What did everyone here do before they were able to work agin?
    Im realy desprate please HELP!

  2. #2
    Senior Member Tom's Avatar
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    NewPara,

    I'm sorry to hear of your misfortune. Trust the IRS to do something like that. I learned the hard way myself last year that when Uncle Sam decides he wants your money, he gets it! Even though it was my fault (I owed back taxes), it was still frustrating because of the seemingly impossible circumstances.

    However, this much is certain - the IRS cannot legally take so much of your money, whatever the source, that you end up in the street. You should either contact an attorney well versed in tax matters, or your Local Taxpayer Advocate. This is what I did last fall. Its in your phone book, ironically under IRS. Call them and go from there. Its a lot of work, and possibly may come to nothing, but you really should try. I got out of the hospital last August and returned to work only to be greeted with a levy on my paycheck. Some get well card! I appealed to the Taxpayer Advocate and after about 2 months managed to win a hardship and get the levy refunded. Then the IRS came around in December and put a levy on my state tax refund! That's what they do - you fight 'em and win one, then they go after something else. Even a king cant win. I didn't owe a whole lot, and fortunately I got caught up after they took most of my tax refund check this spring, so its overwith now. I learned this much - better to withhold too much than too little!

    Good luck!

    Tom

    PS: Welcome to CC - I'm just back online myself after a few months' absence (courtesy the IRS, of course)

  3. #3
    they can only take up to 15% max. call them and explain your problem. if you owe under $5,000 they can put you in noncolletable. over $5,000 you have more crap to go through. they want all your expences for month , rent,utilities,food ,meds, etc. they will help you , the new kinder IRS. lol . of course even in noncollectable the penalty and interest continue.
    oh well

  4. #4
    Same happened to me. You CAN call and get the paperwork to show everyone in the households income and all your expenses. They will then decide to decrease or do away with your debt.
    I resolved to pay the 10 grand back. Suprisingly, after a bit over a year, when the principle was paid back, they dropped the interest and penalties and it is over.
    Sambo can be reasonable. Get the papers, fill them out and if your bills exceed your income, he'll drop it. It IS a human looking at the paperwork, most do have a heart.

  5. #5
    Senior Member NEWPARA's Avatar
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    Thanks for the replies.I only owe just under 3000.00 so Hopfuly I can get this worked out?

  6. #6
    they made it clear to me over the phone that they are very resonable. I just felt like I should pay mine, even if I could never catch up, due to interest rate vs deduction.
    When they INITIALLY contacted me over this, in 96, over the telephone with a rep, they supposedly dropped it, no paperwork, just that phone call. However, in 2005, they just started the deductions. I got a letter from dept of treasury a month AFTER the first deduction. Had them mail the forms, then I wasn 't pleased with all the questions about my 'household income', I live with my sister's family now( I lived alone then), so I said start squeezing the turnip, and they finally quit this year, after the principle was paid of... no interest, suprised me
    mine was over 10 grand counting interest

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