Social Security Stops Collecting on Old Taxpayer Debts

tax calculatorThere is good news for those who owe outstanding tax debts. The Social Security Administration announced on Monday that it will no longer attempt to collect tax debts that are more than 10 years old. A recent Washington Post article reported that debts from as far back as the middle of the past century were in collections.

Carolyn Colvin, Acting Commissioner of Social Security, said in a written statement that Social Security or Supplemental Security Income beneficiaries who believe they were incorrectly assessed with an overpayment, should request an explanation or look for ways to rectify the overpayment.

How to Appeal an Overpayment Assessment

The Social Security Administration says that if you disagree about being overpaid, or if you believe the amount is not correct, you can submit a written appeal by filing form SSA-561. You can get the form online, by phone or by going to your local SSA office. You should explain why you think the overpayment assessment is incorrect or why you believe the amount is inaccurate.

Note that you’ll have 60 days from the date you received the overpayment notice to file your appeal. Says the Social Security Administration: “There is no time limit for filing a waiver. You will have to prove that the overpayment was not your fault and paying it back would cause you financial hardship or be unfair for some other reason. We may ask you to give us proof of your income and expenses. We also may ask you to meet with us.”

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