The IRS has been seizing tax refund checks from citizens for age-old debts they never even knew about, according to the Washington Post. Hundreds of thousands of Americans have received letters from the IRS informing them that because of a debt they never knew about, often debts their parents incurred, the government has confiscated their check.
The IRS has intercepted $1.9 billion in tax refunds already this year — $75 million of that on debts delinquent for more than 10 years. This has been going on for three years. This is the result of a single sentence tucked into the farm bill lifting the 10-year statute of limitations on old debts to Uncle Sam for which no one is taking credit, not the slippery White House nor the slippery Congress.
Without warning this year, the Social Security Administration (SSA), found 400,000 taxpayers who collectively owe $714 million on debts more than 10 years old. They didn’t notify taxpayers, but they did threaten them after the fact, saying they would ruin their credit rating by reporting them to the credit agencies.