The Statute of limitations for old government debts is lifted and most people don’t know about it!
The new farm bill that was passed last year by the government contained an unannounced and unseen provision that lifted the federal statute of limitations for the use of administrative offset to recoup debts owed to the government. As a result, the Social Security Administration is capturing tax refunds for alleged overpayments that are decades old due to the provision inserted in last year’s Farm Bill that lifted the 10 year statute of limitations. The Washington Post article on this topic is contained here.
Government May Recoup Debts From Your Tax Return
What this means in real terms is that the government can potentially offset tax refunds and other government payments (like Social Security) for debts arising from old Social Security overpayments, farm subsidies, mortgage guarantees, student loans, and virtually any situation where the taxpayer owes the government money and the government can now go back to the beginning of time to do this to try and collect on these types of debts. It is especially disturbing that the government, according to this article, can also pursue a family member’s debt through another member of the family by virtue of this type of setoff.
Our law firm has several years’ worth of experience dealing with all types of government debts. If you or your family members are in a situation where your tax refund or other government payment has been offset to pay an old debt, please contact our office immediately to set up a free consultation in our office with one of our licensed attorneys. Contrary to popular belief, most government debts can be discharged in bankruptcy. There are limited exceptions as far as discharging tax or student loan debt but, in almost all fact situations, there is usually something that we can do to assist our potential clients with these types of problems. We will sit down with you and explore your entire financial situation privately and confidentially at our initial free consultation.