Old SSA debts offset against tax refunds
Posted: Sat Apr 12, 2014 4:13 pm
Sadly providing another example of big government out of control:
http://www.washingtonpost.com/politics/ ... story.html
It sounds like SSA must have certified these past due amounts to the Treasury Offset Program, under section 6402(d). It's a good program when administered well - after all, why should the government refund taxes to someone who owes it money. But the taxpayer should have notice in advance that this can happen. Sadly, if the debt has been properly certified, a tax refund suit can't get it back. The taxpayers' only relief here is to go to the SSA. Good luck with that.
It seems to me that the SSA should have used better judgment here. As usual, the IRS will get the blame, even though the whole process is entirely out of their control. Treasury's FMS division manages the TOP program. IRS has no input.
Follow up story, providing a little more background:
http://www.washingtonpost.com/politics/ ... ml?hpid=z1
So it looks like Congress bears some blame for this - but just because a federal agency has the power to do this, doesn't mean they should. Going after the primary debtor might be ok, but pursuing people who were kids when their parents got money they maybe shouldn't have is over the top. I'd also have my doubts as to how good those 40 year old records are. It's a safe bet that the SSA beneficiaries will no longer have any records of their own with which to contest these debts. (Which is why periods of limitation exist)
http://www.washingtonpost.com/politics/ ... story.html
It sounds like SSA must have certified these past due amounts to the Treasury Offset Program, under section 6402(d). It's a good program when administered well - after all, why should the government refund taxes to someone who owes it money. But the taxpayer should have notice in advance that this can happen. Sadly, if the debt has been properly certified, a tax refund suit can't get it back. The taxpayers' only relief here is to go to the SSA. Good luck with that.
It seems to me that the SSA should have used better judgment here. As usual, the IRS will get the blame, even though the whole process is entirely out of their control. Treasury's FMS division manages the TOP program. IRS has no input.
Follow up story, providing a little more background:
http://www.washingtonpost.com/politics/ ... ml?hpid=z1
So it looks like Congress bears some blame for this - but just because a federal agency has the power to do this, doesn't mean they should. Going after the primary debtor might be ok, but pursuing people who were kids when their parents got money they maybe shouldn't have is over the top. I'd also have my doubts as to how good those 40 year old records are. It's a safe bet that the SSA beneficiaries will no longer have any records of their own with which to contest these debts. (Which is why periods of limitation exist)