S.S. Confiscates Money Owed On Old Debt.

[OldCoyote]

You wonder why oldcoyote sometimes has a problem with government.

watchdog.org/138689/irs-social-security/

The aggressive effort to collect old debts started three years ago — the result of a single sentence tucked into the farm bill lifting the 10-year statute of limitations on old debts to Uncle Sam.

www.washingtonpost.com/politics/social-security-treasury-target-hundreds-of-thousands-of-taxpayers-for-parents-old-debts/2014/04/10/74ac8eae-bf4d-11e3-bcec-b71ee10e9bc3_story.html 

A single sentence written into the farm bill,   I wonder who was the elected member of congress that thought this was a good thing.  Or was this written by an unelected bureaucrat?

www.cbsnews.com/news/social-security-will-stop-seizing-tax-refunds-to-collect-old-debts/ 

I wonder if the people that had money confiscated are being reimbursed?  

[billisonboard]

So to be clear, these are people who were given money they weren't entitled to receive who are now having to return it. Right? 

[buystoys]

Jul 19, 2015 8:39:45 GMT -5 billisonboard said:

So to be clear, these are people who were given money they weren't entitled to receive who are now having to return it. Right? 

Since this is an older story, I'm having a hard time finding the link to an article I read a couple of years ago on this topic.  While the claim by SSDI is that people were given money they weren't entitled to, the issue is that not all of the people who "received" the money or are being garnished were of legal age when the monies were distributed.  The story I read was about an older woman who was having her SS check garnished due to her mother receiving benefits for the children after their father died.  When the ten year look back was lifted, SSA determined that the mother was overpaid.  While there were other siblings who also "received" benefits, the older woman was the only one who was having money garnished.  She never even knew that her mother was receiving the benefits IIRC.  The time between the benefits being paid out and the attempt to recover the overpayment was around 50 years I think.  Does anyone keep personal tax and income records for that length of time?

While I don't have an issue with SSA collecting on overpayments, I do have an issue with some of their methods if what I've read is correct.

[wmpeon]

Quote: There are several scenarios in which people may have received overpayments as children. For example, when a parent of a minor child dies, the child may be eligible for survivor's benefits.

If there was an overpayment made on behalf of the child, that child could be held liable years later, as an adult.

So if, when you were a child, an overpayment was given to your guardian to help with your care, then you may now be responsible.  Whereas most loans can't force a minor to be liable, let alone force a child to pay back monies given to and spent by their parents, the government makes their own rules.

ETA: buystoys beat me to it and said it much better. 

[Deleted]

The last article link says the following:

"No one, absolutely no one, contrary to what was alleged in the press, no one was asked to pay back a debt that was a debt of their parent or another adult," Spencer said. "These were their debts."

The most common form of overpayment went to college students, Spencer said. From 1965 to 1985, children who lost parents could continue to receive survivor's benefits until they reached the age of 22, as long as they were full-time students. Since 1985, those benefits have ended at age 18, unless the beneficiary is still in high school.

Sometimes, a student would stop going to school without telling Social Security, so payments would continue until the agency found out, Spencer said.

"The main reason that these overpayments existed in the first place, this is what our study showed, is because the individual did not follow their reporting responsibilities," Spencer said. "They did not report to us, as they as they agreed to do, the fact that their status changed, that they started working, that they married, that they were put in jail, that they no longer were students."

If this is true, then the money is owed by the individual and needs to be paid back.

It does not sound like the initial, single story, is representative of what is actually going on. I can believe that the IRS makes errors and the first story might be an error IF the subjects statements are accurate. But people lie all the time and game social security. I think this is one way for the IRS to say, you do fraud, we will take it back from you.

If they can garnish a tax refund, then they certainly have a correct address to communicate with the taxpayer to notify and work resolution ahead of time. They really should have to go through a legal process, like judgment, that ensures notice to the involved people. 

[djAdvocate]

it sometimes amazes me what you appear to be upset about, oc.

[OldCoyote]

I see that the one link does not work.


IRS holds refunds to recover parents’ Social Security

The lady,who is now 58 years old, had her income tax refund confiscated by the IRS for a debt through her fathers account that may have occurred when she was four years old?

Does the IRS have proof that the four year old received the money?

[OldCoyote]

Here another one,  IRS confiscated her tax refund for a debt owed by her father.  "when I was a minor learning to ride a bicycle".


www.cbsnews.com/news/frustration-with-mistaken-tax-refund-seizures-continues/

[OldCoyote]

Read the comments after the news story.


www.cbsnews.com/news/can-the-government-seize-your-tax-refund-to-pay-your-relatives-old-debt/

[fairlycrazy23]

I almost think it is funny that the SSA says we never confiscate money from one person when it is owed by a relative, and then admit that is what they did.

[sesfw]

My deceased cousin's son was 14 when he left home. His mom and step-dad continued to collect his SS until age 18. When son started filing income taxes SS confiscated his refunds until all the money was paid back.

He in close to 50 now and never wants to see step-dad and mom again.

[happyhoix]

Jul 20, 2015 9:53:43 GMT -5 sesfw said:

My deceased cousin's son was 14 when he left home. His mom and step-dad continued to collect his SS until age 18. When son started filing income taxes SS confiscated his refunds until all the money was paid back.

He in close to 50 now and never wants to see step-dad and mom again.

I would think he would have a good case to sue his step dad and mom for fraud to get the money back.

Of course, if they're broke, he won't get anything.

 

[zibazinski]

Well the govt can certainly go after the parents.