Is Social Security Exempt from IRS Levy? No!

Is Social Security Exempt from IRS Levy? No!
IRS can take up to 15% of Social Security Disability payments.  
○ The types of Social Security payments that the IRS levies under the Federal Payment Levy Program (FPLP) include:
   • Retirement, Survivors, and Disability Insurance program payments. 
○ The types of Social Security payments that the IRS does not levy under the FPLP include:
   • Children’s benefits; 
   • Supplemental Security Income payments; and 
   • Lump sum death benefits
See IRS Pub 4418

No Levy is allowed to impose Economic Hardship
Though the statutes permit IRS to take away up to 15% of disability payments, the law does not permit IRS to take anything if doing so would impose an economic hardship. “Economic hardship” is defined as the inability to pay basic living expenses. The United States Tax Court has stated that no levy is permitted to impose economic hardship. See Vinatieri v. Comm., 136 T.C. No. 16 (Dec. 21, 2009).