Can the IRS Take My Social Security? Debunking the Myths

Can the IRS Take My Social Security? Debunking the Myths

One of the most common questions we hear from clients is: “Can the IRS take my Social Security?”
The short answer: Yes.
But the reality is more complex and often misunderstood. This post will clarify the legal authority, limitations, exceptions, and preventative strategies when it comes to IRS levies on Social Security benefits.

General Rule: The IRS Can Levy Social Security Payments

Under IRC §6331(a), the IRS has the authority to levy (i.e., legally seize) a taxpayer’s property or rights to property to satisfy a tax debt, including Social Security benefits.

Specifically, the IRS can issue a continuous levy on Social Security benefits under the Federal Payment Levy Program (FPLP), pursuant to IRC §6331(h). This provision allows for up to 15% of a taxpayer’s monthly Social Security payments to be levied automatically without the need for reissuing the levy each month.

Authority: IRC §6331(h) – “Notwithstanding subsection (a), a levy on specified payments... may be continuous from the date such levy is first made until such levy is released. A levy under this subsection may not exceed 15 percent of any specified payment.”

Misconception #1: “They can’t take my Social Security: it’s protected!”

Many believe that Social Security is off limits. While certain government benefits are protected from creditors, the IRS is not a typical creditor.

• Social Security benefits (Title II payments) are subject to levy under FPLP.

• Supplemental Security Income (SSI), which is need-based (Title XVI), is exempt from IRS levy.

Key Distinction: Only Title II Social Security (i.e., retirement, survivor, and disability benefits) can be levied by the IRS. SSI cannot. See IRM 5.11.7.2(3)

Misconception #2: “They can only take 15%, so I’ll still be okay.”

While the standard levy under FPLP is 15%, taxpayers should not assume this is the absolute ceiling.

Manual Levy Overrides the 15% Cap

Under IRC §6331(a) (not §6331(h)), the IRS may issue a manual levy that bypasses the FPLP limitations. A manual levy is not restricted to 15% in theory, 100% of the benefit can be levied, subject to exemptions under IRC §6334.

IRM 5.11.7.2(2): “A manual levy served on the Social Security Administration is not subject to the 15 percent limitation applicable to the FPLP levy.”

In practice, the IRS may use a manual levy if:

• The taxpayer is not in the FPLP system.

• The case is being handled by a revenue officer.

• The taxpayer is in active collection proceedings.

• The taxpayer ignored multiple notices.

Prevent It Before It Starts: Representation Matters

Taxpayers often don’t realize that representation can stop or prevent a levy altogether. Before a levy can be issued, the IRS is required to send:

• Notice of Intent to Levy (LT11 or Letter 1058) under IRC §6331(d), and

• Collection Due Process (CDP) notice under IRC §6330(a).

If you act within 30 days of the CDP notice, you can request a hearing, effectively halting the levy while your case is reviewed. This is where professional representation is critical.

IRM 5.11.1.2.2: “A levy may not be issued until 30 days after the notice required by IRC 6331(d) is given.”

Skilled representation can also:

• Negotiate installment agreements.

• Request Currently Not Collectible (CNC) status under IRM 5.16.1.

• Raise hardship arguments under IRC §6343(a)(1)(D), which allows release of a levy that creates an economic hardship.

Beware of Empty Threats from the IRS

While the IRS has broad authority to levy, it's important not to panic over aggressive language in IRS notices. Even though the IRS can levy Social Security or other assets, they are still bound by due process requirements under IRC §6330 and §6331(d). This includes advance notice, the right to a hearing, and legal exemptions under IRC §6334 that can protect certain income and assets. Skilled representation can invoke these rights and prevent wrongful or excessive levies. Don't assume every threat leads to immediate enforcement with the right help, many of these actions can be delayed, reduced, or avoided entirely.

Bottom Line: Know Your Rights

Yes, the IRS can take your Social Security, and the common belief that “they can only take 15%” is a partial truth at best. The 15% cap applies to automated levies, but a manual levy can take more or all of your benefit.

With timely representation and strategic intervention, there are legitimate ways to stop or reduce IRS levies. The key is not waiting until it's too late.