Tuesday, April 15, 2014

Social Security stops trying to collect on old debts by seizing tax refunds --- The Social Security Administration announced Monday that it will immediately cease efforts to collect on taxpayers’ debts to the government that are more than 10 years old. -- The action comes after The Washington Post reported that the government was seizing state and federal tax refunds that were on their way to about 400,000 Americans who had relatives who owed money to the Social Security agency. In many cases, the people whose refunds were intercepted had never heard of any debt, and the debts dated as far back as the middle of the past century. -- “I have directed an immediate halt to further referrals under the Treasury Offset Program to recover debts owed to the agency that are 10 years old and older pending a thorough review of our responsibility and discretion under the current law,” the acting Social Security commissioner, Carolyn Colvin, said in a statement. -- Colvin said anyone who has received Social Security or Supplemental Security Income benefits and “believes they have been incorrectly assessed with an overpayment” should contact the agency and “seek options to resolve the overpayment.” -- The effort to collect on old debts began with a single line in the 2008 farm bill that lifted the statute of limitations on debts to the government that are more than 10 years old. The Treasury Department then set up rules that allowed the government to settle such debts by intercepting taxpayers’ refunds. The department has collected about $2 billion in intercepted tax refunds this year, $75 million of that on debts delinquent for more than 10 years. -- More, Marc Fisher, at: http://www.washingtonpost.com/politics/social-security-stops-trying-to-collect-on-old-taxpayer-debts/2014/04/14/9355c58e-c40f-11e3-bcec-b71ee10e9bc3_story.html?hpid=z1

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