The United States Social Security Administration (SSA) confirmed that it won’t be seizing your tax refunds this year for old debts that may be outstanding by about a decade, according to a statement released by the federal agency.
Early last year, Carolyn Colvin, acting Social Security commissioner, had suspended a debt collection program that would have taken away the tax refunds from thousands of Americans who received overpayments more than a decade ago. There were complaints that some taxpayers were prompted to repay benefits, even when they received it decades ago.
After reviewing the plan, the SSA said Monday that the program will continue being suspended this tax season until other changes are explored by officials. However, the debts will not vanish. This means that Social Security can eventually start deducting the debts from retirement benefit payments.
“The commissioner is concerned about the public perception about the way we’re running this program,” said Pete Spencer, Social Security’s deputy commissioner for budget, finance, quality and management. “We are bound by federal law to collect these debts and they don’t go away.”
This past spring, the agency confirmed 400,000 people with outstanding debts of more than $700 million. Another 300,000 individuals still maintain old debts. The remaining sums were resolved either by repayment or death. It was estimated that more than half of the debts were amounts of $1,000 or less.
Leave a Comment