My business was a corporation in Indiana from 1999 to 2005. I filed bankruptcy on it 10/2005. I was declared permanently disabled in 2004 and will never be able to work a regular job. I have unpaid or underpaid 941 quarterly taxes due for various quarters in 2003, 2004 when I became disabled. Can the IRS garnish the $1,059 I receive from Social Security each month or are these funds exempt?
2006-07-03 05:01:16 · 5 answers · asked by Cass 1 in Business & Finance ➔ Taxes ➔ United States
Unfortunately, Stuart is wrong.
If the Trust Fund RecoveryTax has been assessed against you then the IRS can, indeed, attach a portion of Social Security. The Bankruptcy would not have covered taxes that were less than 3 years old, unless you filed a Chapter 13. Even then those employment taxes are not dischargable in bankruptcy, and yes, the IRS can get the OK from a district director toattach your SSN.
2006-07-07 17:53:21 · answer #1 · answered by besttaxexpert 2 · 0⤊ 1⤋
1
2016-10-08 01:10:21 · answer #2 · answered by Alberta 3 · 0⤊ 0⤋
Social Security payments cannot be garnished for any reason.
However, the IRS can sieze any other assets you may have to satisfy the debt, and can also pursue criminal proceedings for the tax evasions.
2006-07-03 05:05:20 · answer #3 · answered by Stuart 7 · 0⤊ 0⤋
Unless you personally are being held responsible for something with respect to the corporation, your personal income, including SSDI, should not be garnishable. That's the whole point of having a corporation.
2006-07-03 05:06:19 · answer #4 · answered by Anonymous 7 · 0⤊ 0⤋
you can not have that money taken. it wouldn't be tax evasion if you filed but couldn't pay
2006-07-05 00:49:57 · answer #5 · answered by daniel_97202 5 · 0⤊ 0⤋