Bloomington, IL asked in Tax Law for Illinois

Q: Will the IRS take my SSDI back pay ? If I owe back taxes. And if so is it possible to prevent IRS from taking.

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: If you owe back taxes, the IRS can take your SSDI back pay. This is part of the Treasury Offset Program, where the government can offset federal payments to collect overdue debts, including taxes.

To potentially prevent this, you can try to set up a payment plan with the IRS before receiving your back pay. This agreement might allow you to manage your debt without losing your entire back pay.

Another option is to apply for hardship status if your financial situation is dire. This status might temporarily halt the collection process, but you'll need to provide evidence of your financial hardship. Always keep communication open with the IRS to explore these options.

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