Can the IRS Garnish Welfare?
Not paying your federal income tax bill can result in unpleasant consequences. The Internal Revenue Service will notify you if you owe the agency money and neglected to pay. There are a variety of ways that the IRS can attempt to collect from you. However, if you are receiving government assistance, it generally cannot be garnished to satisfy your tax debt.
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Welfare
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Welfare consists of monthly government assistance payments to households that qualify by meeting a variety of requirements, such as income levels, family size, pregnancy and others. Each state administers the program, so qualification standards differ. It is meant to be short-term assistance for those in need until they are able to earn an income through employment. There are several welfare programs, such as food stamps, Medicaid, child care and housing assistance.
Lien
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If you don't pay your tax bill, the IRS will contact you in an attempt to bring your account current. You will receive a demand letter with details of the amount you owe and the date that you must pay it to stop further action. You have 10 days to pay your debt to the government or a lien can be attached to all of your assets, including items such as your car and other articles of value.
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Levy
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After the IRS places a lien on your assets, it will send you a notice that gives you 30 days to pay your tax bill to release the liens. If you do not, it may legally seize your assets and sell them to satisfy your debt. Your wages or bank accounts can be garnished and the title of your home can be attached so that you are not able to sell it without paying the government first.
Exempt from Levy
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There are certain assets you own and payments you receive that are usually exempt from federal tax levies. For example, the tools you need for employment cannot be taken by the government. Your unemployment checks also are protected and only a small portion of your Social Security may be garnished. Generally, your welfare payments are exempt from being taken to satisfy your tax debt. In addition, If you qualify to receive government assistance, then you may not earn enough to meet the minimum income for garnishment anyway.
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