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Valor Tax Relief Team
Professional Tax Resolution Specialists
Overview
Back taxes don’t stop you from receiving Social Security—but the IRS can take a portion of certain benefits to collect. Knowing what’s protected, your notice and appeal rights, and which relief options apply can help you keep as much income as possible.
If tax debt is already straining your budget, explore Installment Agreements, Offer in Compromise, or Currently Not Collectible.
Understanding Levies
A levy is an actual seizure of money or property to satisfy a tax debt (unlike a lien, which is only a claim). The IRS generally uses levies after notices are sent and opportunities to resolve have passed.
FPLP & Exempt Benefits
Through the Federal Payment Levy Program (FPLP), up to 15% of Old‑Age (retirement) and Survivors Insurance benefits can be levied automatically for unpaid federal taxes. Social Security Disability Insurance (SSDI) is not systemically levied via FPLP as of 2015.
Fully Exempt
- Supplemental Security Income (SSI)
- Survivor benefits paid to children
- Lump‑sum death benefits
May Be Levied
- Retirement benefits (up to 15% via FPLP)
- Adult survivor benefits (up to 15% via FPLP)
- SSDI via manual levy in limited cases
Federal non‑tax debts may also be collected from benefits under the DCIA, separate from IRS tax levies.
Manual Levies
In rare, high‑debt or prolonged noncompliance situations, an IRS revenue officer may issue a manual levy. Unlike the automated FPLP, manual levies can exceed 15% and target broader benefits. They’re uncommon—but serious.
Notice & Appeal Rights
Before levy, the IRS must send notices, including a Final Notice of Intent to Levy, and provide time (typically ~30 days) to request a Collection Due Process (CDP) hearing.
Your Options During the Window
- Propose an Installment Agreement
- Submit an Offer in Compromise
- Request Currently Not Collectible due to hardship
- Seek professional representation
Which Benefits Can Be Levied?
IRS Can Levy
- Social Security retirement
- Adult survivor benefits
- SSDI (generally via manual levy only)
IRS Cannot Levy
- SSI
- Survivor benefits for children
- Lump‑sum death benefits
How Much Can Be Levied?
Under FPLP, up to 15% of eligible monthly benefits can be withheld. Example: $1,500 benefit → up to $225 levied each month until paid, the collection statute expires, or a new arrangement is made.
Protections & Relief Options
Installment Agreements
Affordable plans can pause or prevent levy escalation.
Offer in Compromise
Resolve for less than owed when you qualify.
Currently Not Collectible
Hardship status can temporarily stop collection.
If You’re Facing a Levy
- Open and read every IRS notice immediately—mark your CDP deadline.
- File any missing returns; get compliant to unlock relief options.
- Choose a path: IA, OIC, or CNC.
- Document income/expenses for submissions; use our IRS forms directory.
- If needed, engage representation to negotiate and protect income.
Frequently Asked Questions
How fast does the levy start?
If you don’t respond or arrange payment, SSA may begin withholding within 1–2 months after the final notice period.
Can states levy federal Social Security benefits?
Generally no. Federal protections apply; state tax agencies can’t levy federal Social Security benefits.
Protect Your Social Security from IRS Levies
We’ll evaluate levy risk and implement relief—payment plans, OIC, or hardship status—to safeguard income.
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