Rep. Vern Buchanan (R-Fla.) said on Wednesday he will introduce legislation that would prevent the IRS from collecting tax refunds from people whose parents received overpayments in government benefits decades ago.
The Stop Punishing Innocent Taxpayers Act would implement a permanent 10-year statute of limitations on the IRS’s collection of old debts incurred by the parents or relatives of an individual.
The legislation follows reports that the IRS seized tax refunds from the family members of people who received Social Security overpayments as far back as 50 years ago.
The bill is needed to ensure that refunds are never confiscated for old debt again, Buchanan, a member of the House Ways and Means Committee, said.
“This grotesque abuse of power is just one of the many reasons why Americans are fed up with Washington,” Buchanan said. “The federal government should not be penalizing children because the government miscalculated the federal benefits for their parents. My bill will put an end to this outrageous and unfair confiscation.”
The seizure process could be a violation of constitutional rights, Buchanan said, if people are not properly notified or provided proof of the debts that they owe.
The Social Security Administration has targeted $714 million in old debt allegedly owed by 400,000 taxpayers.
Buchanan said he would introduce the Stop Pushing Innocent Taxpayers Act when Congress reconvenes next week.