IRS NOTICE Overdue tax debt

Social Security beneficiaries who owe federal taxes to the Internal Revenue Service risk a reduction in benefits of as much as 15 percent a month to pay the debt. The taxpayer Relief Act of 1997 authorizes IRS to collect delinquent federal tax from federal payments, including Social Security benefit payments. The details:
IRS has sent a warning notice, "Final Notice Before Levy on Social Security Benefits." Beneficiaries who owe a delinquent federal tax will receive a notice before IRS reduces a Social Security benefit. The notice explains the debt amount, how to pay the debt, and what to do if the beneficiary cannot pay the debt.There will be no deductions from children's benefits, benefits undergoing partial withholding to repay a debt owed Social Security, supplemental Security Income (SSI) payments, and lump-sum death benefits.The U.S. Department of Treasury will reduce benefits in February 2002 and continue until the beneficiary pays the debt owed.Each month, when the money is deducted, the Treasury Department will send a letter stating when the deduction occurred, the amount deducted, and how to contact the IRS to discuss the delinquent federal tax debt. Beneficiaries who have questions should call IRS at (800) 829-7650. Call within 30 days to arrange to pay the debt or to explain special circumstances, such as bankruptcy.Social Security can answer only general questions about the reduction of benefits; questions about your specific debt can be answered only by the IRS.
Source: IRS