House Ways and Means Oversight Subcommittee Chairman Rep. Charles Boustany (R-La.) and Social Security Subcommittee Chairman Rep. Sam Johnson (R-Texas) recently sought answers about the Treasury Department’s Offset Program and its effects on children who once received Social Security benefits.
Boustany and Johnson wrote to Treasury Secretary Jack Lew and acting Social Security Administration Commissioner Carolyn Colvin about recent reports that adults who may have once received Social Security benefits as children had their tax refunds withheld for overpayments made decades ago to their parents.
The parents of some of the affected citizens are deceased and many of the taxpayers never received notice that they owed a debt as provided under law.
Colvin announced last week that the SSA would stop additional referrals of debts to the Treasury Department owed to Social Security that are 10 years or older for collection under the Treasury Offset Program.
“SSA’s decision to stop referrals was the right thing to do,” Boustany and Johnson said. “However, Treasury and Social Security still owe an explanation to the American people. While the government must protect taxpayer dollars, it is difficult to justify the practice of seizing innocent Americans’ tax refunds to pay debts resulting from benefits they may or may not have received when they were children, with little or no notice or evidence documenting the overpayment. The sooner we have those answers the sooner we can work to protect Americans from agency actions that are harsh and unfair.”
The Washington Post reported on April 10 that the Treasury has intercepted $1.9 billion in tax refunds this year, including $75 million of delinquent debts 10 years of age or older. Additionally, 400,000 taxpayers who owe a total of $714 million in debts more than 10 years old have been identified by SSA.