April 16, 2014

While a pair of Senators may have been instrumental in ending the Social Security Administration’s policy of seizing taxpayer’s refunds for decades of SSA errors that led to overpayment of benefits, even to the parents of the taxpayer’s, the law allowing the seizures still remains as a law.

These seizures are possible because of a provision in the 2008 Farm Bill, which allowed the SSA to pursue claims owed to it for overpayments beyond what had previously been a ten (10) year statute of limitations on collections for debts owed to the government for debts, even IRS debts, that were ten (10) or more years old. However, it appears that the wording in the 2008 Farm Bill has effectively repealed the Statute of Limitations on Collections or the Collection Statute Expiration Date (CSED).

Every taxpayer who is under the impression that their decade old debt to the IRS is no longer enforceable, is in for a rude awakening. While the IRS may not hunt the taxpayer down to collect the old debt, the taxpayer’s refund on the current year tax return is fair game and will most likely be taken before the taxpayer even has a chance to touch the IRS check. So, do not spend that refund before you have it in your hands.

The 2008 Farm Bill was over 500 pages in length and the provision repealing the Statute of Limitations on Collections was most likely slipped in and over looked by the Congressmen and Senators voting this Bill into law. Who would think that a Farm Bill about farm animals would contain such a sweeping provision that would allow government collectors to run amok collecting decade’s old debts, even if the taxpayer did not owe the debt?

Every taxpayer in America should contact their Congressmen and Senators to ask for a Technical Correction to the 2008 Farm Bill Act removing the language in the Bill that would allow for the seizing of refunds for any debt which is ten (10) years old of older. Do it today, before a refund that you are expecting is seized by the IRS.


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