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Social Security overpayment collection statute

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    Social Security overpayment collection statute

    I have a client that was on SS disability. He was also a non-filer of his income tax returns for seven years. The IRS prepared SFR’s for a couple of years and started to take some of his disability checks. We filed his back tax returns but showed more income that was allowed for him to get disability. Now the SSA wants him to repay $50k of disability payments they say he shouldn’t have received. He has appealed and was turned down and has since filed for review by an administrative law judge.

    My question is if he is turned down at that level what will the SSA do to collect? I asked the appeals officer what the collection statute was on the SSA’s ability to collect the over payment. She looked at me like my hair was on fire and just said, “He just has to pay it back.” I pressed on with the question and was told they would garnishee his wages or SS disability payments. He is self employed and is no longer receiving SS disability. They will not levy his bank account or attempt to seize his property. He is about 15 years away from getting regular SS and I would think the collection statute would have run out by then but I can’t get a straight answer. Anyone here know?
    In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
    Alexis de Tocqueville
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