Clear Start Tax Explains How the IRS Can Legally Withhold a Portion of Your Social Security and What Retirees Can Do About It
IRVINE, CA / ACCESS Newswire / May 30, 2025 / Many retirees believe that once they stop working, they’re no longer at risk of IRS enforcement. But according to Clear Start Tax, a leading tax resolution firm, that’s far from true. The IRS can and does garnish Social Security benefits for unpaid tax debt-leaving many seniors with less money to cover essential expenses.
The IRS’s Federal Payment Levy Program (FPLP) allows the agency to automatically deduct a portion of a taxpayer’s Social Security income if back taxes are owed. And while the program does follow a formal notice process, many seniors are caught off guard when their monthly benefits are suddenly reduced without warning.
How Social Security Garnishment Works
If a taxpayer has unpaid IRS debt and fails to resolve it, the IRS may initiate garnishment through the FPLP. This allows the agency to levy up to 15% of monthly Social Security benefits-without needing a court order.
“Many retirees live on fixed incomes, and even a small reduction can have a major impact,” said the Head of Client Solutions at Clear Start Tax. “We often work with clients who didn’t even know the IRS could touch their Social Security until it happened.”
How Seniors End Up Facing IRS Collection in Retirement
Many seniors assume their financial responsibilities with the IRS ended when they stopped working-but that’s not always the case. In fact, certain oversights or unresolved tax issues from years past can follow retirees well into their later years, triggering garnishment even when Social Security is their only source of income.
According to Clear Start Tax, seniors may be more vulnerable to enforcement if they:
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Have unpaid IRS balances from earlier working years
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Missed filings after retirement
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Never entered into a formal payment or settlement agreement
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Ignored IRS notices due to confusion or declining health
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Relied on Social Security as their sole or primary income
How Retirees Can Resolve IRS Debt Without Losing Benefits
The IRS offers formal resolution options for qualifying taxpayers-even those already receiving Social Security. Clear Start Tax helps seniors stop or prevent garnishment through:
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Installment Agreements – Set up manageable monthly payments to stop enforcement
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Currently Not Collectible (CNC) status – Temporarily pause collections for those with financial hardship
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Offer in Compromise (OIC) – Settle debt for less than owed based on financial capacity
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Penalty Abatement – Reduce or remove penalties that have accumulated over time
“If we can intervene early-even after garnishment has begun-there’s often a path to stop it,” added the Head of Client Solutions. “Seniors deserve financial peace in retirement, not unexpected collection actions.”
How Clear Start Tax Supports Seniors With IRS Debt
Clear Start Tax has worked with retirees across the U.S. to resolve long-standing IRS debt, avoid collections, and protect Social Security income. The firm provides:
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Expert IRS negotiation and case management
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Help with unfiled returns and back balances
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Personalized strategies based on fixed income
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Compassionate guidance for seniors and caregivers navigating tax stress
About Clear Start Tax
Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm’s unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry.
Need Help With Back Taxes?
Click the link below:
https://clearstarttax.com/qualifytoday/
Contact Information
Clear Start Tax
Corporate Communications Department
seo@clearstarttax.com
(949) 535-1627
SOURCE: Clear Start Tax
View the original press release on ACCESS Newswire
