Social Security Administration Halts Collection of Old Debts

Tuesday, 15 Apr 2014 01:24 PM

By Courtney Coren

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The Social Security Administration will no longer pursue taxpayer debts that are more than 10 years old.

The federal agency made the announcement Monday after The Washington Post published a story last week saying that the Treasury Department was withholding tax refunds from taxpayers over debts owed by their parents because of Social Security benefits collected on their behalf when they were children.

"I have directed an immediate halt to further referrals under the Treasury Offset Program to recover debts owed to the agency that are 10 years old and older, pending a thorough review of our responsibility and discretion under the current law to refer," Carolyn Colvin, acting Social Security Administration commissioner, said in a statement on the agency's website.

"If any Social Security or Supplemental Security Income beneficiary believes they have been incorrectly assessed with an overpayment under this program, I encourage them to request an explanation or seek options to resolve the overpayment," she added.

The statute of limitations on the "collection of debt by administrative offset" was lifted in a revision to the 2008 Farm Bill.

That change gave authorities the ability to withhold tax refund money from over 400,000 individuals who had family members who owed debts to the Social Security Administration.

The news sparked a public outcry, a lawsuit and a response by lawmakers.

"Payment beneficiaries have to be accountable for overpayments from the government, but the government has to be reasonable and use common sense," Republican Sen. Charles Grassley of Iowa said in a statement, according to The New York Times.

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

To Fight Crime, Chicago Tries Wiping Away Arrests

Tuesday, 22 Jul 2014 14:58 PM

Desperate to curb the gun violence wracking their city, Chicago lawmakers are leading the way toward a counterintuitive  . . .

Mysterious White Flags Appear Atop Brooklyn Bridge

Tuesday, 22 Jul 2014 13:40 PM

Someone has replaced two American flags on the Brooklyn Bridge with mysterious white flags.The white flags - internation . . .

Pew: Young Liberals Losing Faith in Government and God

Tuesday, 22 Jul 2014 12:06 PM

Today's millennials lean left but distrust government, marking a political opportunity to cull their support, which is m . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved