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| After September 11, everything changed - except the IRS' continuing need for enforcement and revenue. Yes, the IRS is granting many tax breaks and extensions, but some things go on.
One of those is the Debt Collection Improvement Act of 1996. This allows non-tax debts to be offset against Social Security benefits. So far $5 million has been collected. In addition, the IRS's “continuous levy” program, implemented in 1997, allows the IRS to seize money or receivables from government vendors, as well as retirement benefits from government agencies, travel advances and reimbursement payments. Finally, the Treasury Department has announced that it will now begin collecting past-due tax debts from social security benefits. Up to 15% of benefits will be affected. All of this is part of the government's awakening “left hand, right hand” efforts, intended to ensure that you don't get government benefits while at the same time you owe taxes, or other debts to the government. Slowly but surely, the government, including the IRS, is getting better at this. That means it's wise to face and solve your federal or IRS debt problem sooner than later. |
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