For many Americans living on a fixed income, Social Security isn't just a benefit, it’s a lifeline. If you owe back taxes, the fear of waking up to an empty bank account because of an IRS levy is overwhelming.
The short answer is: If your account is placed in Currently Not Collectible (CNC) status, the IRS will not levy your Social Security benefits.
However, understanding how to protect that income and what happens if you don’t take action is critical. Here is everything you need to know about IRS hardship, Social Security levies, and your rights in 2026.
Under the Federal Payment Levy Program (FPLP), the IRS has the authority to automatically take a portion of your federal payments to satisfy tax debts. This includes:
By law, the IRS can automatically garnish up to 15% of your monthly Social Security check. Unlike a private creditor, they do not need a court order to do this; they simply send a notice to the Social Security Administration.
When the IRS grants you Currently Not Collectible (CNC) status, they are formally acknowledging that you are in a state of "financial hardship." In their view, taking even 15% of your income would prevent you from paying for basic necessities like food, medicine, and housing.
It is a common misconception that all "Social Security" is treated the same. There is a vital distinction:
If you receive SSI and the IRS is attempting to collect, you should contact a tax professional or the Taxpayer Advocate Service immediately, as this may be a violation of IRS protocols.
To keep your Social Security safe via CNC status, you must prove your "Allowable Living Expenses" exceed your monthly income.
In 2026, the IRS adjusted the National Standards for those aged 65 and older. Because seniors often face higher medical costs, the IRS allows a higher flat rate for out-of-pocket healthcare:
If your prescriptions, supplemental insurance, and co-pays exceed $149, you can provide documentation to increase this allowance, further lowering your "disposable income" and making it easier to qualify for CNC.
If you are currently receiving Social Security and owe the IRS, do not wait for the levy to start. Follow these steps:
If you received a "Final Notice of Intent to Levy," you have 30 days to request a Collection Due Process (CDP) hearing. This is the best time to propose CNC status as an alternative to the levy.
For most individuals on Social Security, the IRS will accept Form 433-F (Collection Information Statement). This simple four-page document outlines your monthly income and expenses.
If your inability to work is due to age or a permanent disability, make this clear in your application. The IRS is more likely to grant long-term CNC status to those on permanent fixed incomes because their financial situation is unlikely to "improve" in the future.
The best part of being in CNC status while on Social Security is the 10-year Statute of Limitations. If you stay in CNC status for the remainder of the 10-year collection period, the tax debt will eventually expire. For many seniors, this means the debt is effectively "cancelled" without them ever having to pay a dime of their Social Security toward the balance.
The IRS is a powerful collection agency, but it is not heartless. The Currently Not Collectible program was designed specifically to protect people whose only income is a modest Social Security check.