SERVING
Those That
SERVED
Questions & Answers
INSTRUCTIONS: Please read each question carefully. If you are able to answer question appropriately use the form below the question to respond. Your name will not appear on the public answer page. Only your initials and date of your response will be visible.
Q604: I just got a letter from the IRS and I owe the IRS $5235.77. The letter says to call the IRS to make arrangements to pay them what I owe. I don’t have that kind of money hanging around. I need every penny of my VA disability pay to make it. Will the IRS plan to take away my VA disability until my debt is paid in full?
If you have a question about benefits, compensation, pension or VA related issues please submit here.
Use Form Below To Respond
A1: This may not even be IRS but a scam dwell deeper. Most VA disability benefits are exempt from collectors. https://www.nerdwallet.com/article/taxes/avoid-irs-scams#:~:text=Tell%20the%20Treasury%20Inspector%20General,any%20links%20in%20those%20emails. (KB) 12/11/20
A2: Disregard it. It is a scam. (RT) 12/11/20
A3: Disability benefits you receive from the Department of Veterans Affairs (VA) aren't taxable. You don't need to include them as income on your tax return. Tax-free disability benefits include: disability compensation and pension payments for disabilities paid either to veterans or their families. (Got this from the internet). (JP) 12/11/20
A4: Do you know for a fact that you owe the IRS money? Unless you are a Military Retiree receiving VA Disability in lieu of your retirement pay you pension cannot be garnished. There is lots of info online about this. Again, if this is a real debt that you admit to the IRS will generally work with you on a settlement. I am not practicing law or giving you an official position of a government agency. If you make that call be sure it is legitimate. Ask questions to verify it really is the IRS ie. Where are you? What is the address of your office? Who is your branch supervisor?.... I have gotten this letter and call before. If they ask you to make a payment over the phone with credit card, It is scam. Ask if you can come to the local office, I they say anything other than yes, it is a scam.. If they cannot give you the local phone number in your city it is a scam. If they call them selves anything other than United States Internal Revenue Service, it is a scam. My scammer called it the Internal revenue Services(plural) Department(not a department). If they have foreign Accents, it is a scam. My GF is a former IRS employ and she tells me that the IRS does not settle delinquent taxes over the phone. I know that not all of this will apply to you but I also hope some of it will.
Best wishes. (AR) 12/11/20
A5: The Disability from the VA is not taxable...call the DAV or other representative. (BF) 12/11/20
A6: Sounds like a scam, I would talk to a CPA in regards to your compensation being taxed. I believe Social Security and VA Compensation is not taxed. But I'm not the expert. And of course don't send anything to the address in that letter. That would be my personal advice. Gut feeling is Scam & Fraud. (LD) 12/11/20
A7: The IRS can take your pay. Contact the IRS and confirm it is them. If so you can submit a request to not pay. But it also can be a scam. Confirm. (BB) 12/11/20
A8: It is a trick! The IRS NEVER telephones! The either first visit your house in person or the send you a letter through the US Postal Service. (RC) 12/11/20
A9: Make sure this is not a scam check with your dav to make sure. (RM) 12/11/20
A10: I suggest that you call a lawyer or contact the person who prepares your income taxes. (JH) 12/11/20
A11: Do not call the phone number on the letter, look up the number for your local IRS office and speak with them. They will tell you if they sent that letter. In any event that you do owe that amount for some reason. Make a payment arrangement that fits the lowest amount you can afford. Let them know it will cause hardship. (CW) 12/11/20
A12: Just like the letter says--CALL THEM. Contrary to popular opinion, the IRS will work with you, they can set up payment plans, they can waive some penalties and interest (which can be more than the amount of tax you owe). You don't need professional (high priced tax firms), but if you can find reasonable representation, it is encouraged. They will work with you whether or not you have paid representation. Bottom line--call them now, don't let it fester; it will only get worse. (BG) 12/11/20
A13: Do not call. The IRS would send you a letter if you owed them any money. It is a SCAM. Pay no attention to it and do not worry about it.. They never call you by phone. (SU) 12/12/20
A14: https://www.levytaxhelp.com/blog/can-the-irs-take-my-ssi-income/
Can the IRS Garnish VA Disability Benefits?
The U.S. Department of Veterans Affairs delivers compensation to veterans that are disabled while actively serving in the military. This compensation is a fundamental right of military veterans, and many need VA disability benefits to survive.
Fortunately, the Internal Revenue Service agency cannot withhold or levy federal taxes from your VA disability benefits. The same rules apply if the IRS is attempting to collect benefits to satisfy a tax debt. By law, the IRS cannot levy VA disability benefits or any government checks you receive as public assistance (i.e. VA pension).
While your VA disability benefits are exempt from tax levies, the same is not true of many other things you might own, such as vehicles, real estate, bank accounts, and wages you may be receiving from a current occupation.
The IRS should NOT be able to take these payments in most circumstances via levy, read below from Internal Revenue Code Section 6334:
There shall be exempt from levy?
(10) Certain service-connected disability payments Any amount payable to an individual as a service-connected (within the meaning of section 101 (16) (The term ?service-connected? means, with respect to disability or death, that such disability was incurred or aggravated, or that the death resulted from a disability incurred or aggravated, in line of duty in the active military, naval, or air service.) of title 38, United States Code) disability benefit under? Veterans disability benefits have specific protection from levy or seizure under United States Code Title 26, 6334. The IRS cannot seize the benefits to pay a tax debt under that law.
Be careful in that the IRS often will levy against a bank account where these funds may be deposited as a round about way to get after these monies. They should not be doing this and you should bring this to their attention, including hiring legal representation as necessary to argue this point. Alternatively, get a new account to deposit the money to or use other means if these funds fall into the protected category. (TP) 12/12/20
A15: Do NOT, under any circumstances call the number given in the letter. Look up the IRS in the phone book or online and call them using the listed number to verify the letter. I smell scam from the git go. (JB) 12/12/20
A16: For me they'll make payment monthly arrangemen for $200 set up fee if you don't they will garnish any income benift payment you may have which is $200 for you and $50 for each dependent they the difference - will not consider debts each month you delay payment or arrangements is $100 in late fees and penalties so act quickly:
you are not paying enough during the year and this will cost you more in the long run it will take you 5 to 19 years to pay that back and they will keep any future money they owe you at the end of year good luck it took me for same many years to pay back. (RT) 12/12/20