Posts Tagged With: Social Security

Judge London Steverson, This Is Your Life

 https://www.amazon.com/My-Life-Coast-Guard-Tiger-ebook/dp/B077G9BS5R/ref=asap_bc?ie=UTF8

Judge London Steverson has written the story of his life. Trying to write a book about my life is like trying to describe the landscape by looking out the window of a moving train. The events continue to unfold faster than one can describe them. My life is a work in progress. For this reason I have decided to look at my life in phases that have a clearly defined beginning and an end. In this book I intend to describe that part of my life that was shaped by my involvement in the Martial Arts. 

https://www.amazon.com/Judge-London-Steverson/e/B006WQKFJM


IN A NUT SHELL 
I, London Eugene Livingston Steverson retired from the United States Coast Guard in 1988 as a Lieutenant Commander (LCDR). Later, I retired from the Social Security Administration (SSA) as the Senior Administrative Law Judge (ALJ) in the Office of Disability Appeals and Review (ODAR) Downey, California.
In 1964, I was one of the first two African Americans to receive an Appointment as a Cadet to the United States Coast Guard Academy in New London, Connecticut. I graduated in 1968. After two years at sea on an Icebreaker, the USCGC Glacier (WAGB-4), and another two years as a Search and Rescue Operations Officer in the 17th Coast Guard District Juneau, Alaska, I was appointed Chief of the newly formed Minority Recruiting Section in the Office of Personnel at Coast Guard Headquarters, 7th and D Street, SW, in Washington, DC. My primary duty was to recruit Black High School graduates for the Coast Guard Academy. This was my passion, so I set about this in a most vigorous manner.
I have written several books concerning Military Justice, famous Courts-martial Cases, and Social Security Disability Determination Cases. I am a retired member of the New York State Bar Association, The Association of The Bar of The City of New York, and The Tennessee Bar Associations.
A Presidential Executive Order issued by President Harry Truman had desegregated the armed forces in 1948, but the military academies lagged far behind in officer recruiting.
President John F. Kennedy specifically challenged the Coast Guard Academy to increase appointments to qualified Black American high school students.
I was one of the first Black High School students to be offered such an appointment in 1964. I had a Black classmate from New Jersey, Kenny Boyd. We would become known as “The Kennedy Cadets”, because the pressure to recruit us originated with President John F. Kennedy.
On June 4, 1968, I graduated from the Coast Guard Academy with a Bachelor of Science degree in Engineering and a commission as an Ensign in the U.S. Coast Guard.
My first duty assignment out of the Academy was in Antarctic research logistical support. In July 1968 I reported aboard the Coast Guard Cutter (CGC) Glacier (WAGB-4), an icebreaker operating under the control of the U.S. Navy. I served as a deck watch officer and head of the Marine Science Department. I traveled to Antarctica during two patrols from July 1968 to August 1969, supporting the research operations of the National Science Foundation’s Antarctic Research Project in and around McMurdo Station.
In 1974, while still an active duty member of the Coast Guard, I entered The National Law Center of The George Washington University. I graduated in 1977 with a Juris Doctor of Laws Degree.
I worked as a Law Specialist in the 12th Coast Guard District Office, San Francisco, California and as an Assistant U. S. Attorney for the collection of Civil Penalties under the Federal Boating Safety Act from 1979 to 1982. As Assistant District Legal Officer, I was required to defend as well as prosecute military members who had been charged with violations of the Uniform Code of Military Justice (UCMJ). Occasionally I was asked to represent other officers in administrative actions involving sexual harassment and discrimination. One such case was the Case of Christine D. Balboni . 

 Ensign (ENS) Balboni was one of the first female graduates of the Academy, Class of 1981. She filed the first case of Sexual Harassment case in the military.

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SSA Announces 2% COLA Increase in 2018.

Social Security checks to be 2% bigger in 2018.

Average monthly check will go up $27

 

NEW YORK  – Millions of Americans will get a boost to their Social Security checks next year.

The government announced a 2 percent increase to Social Security Benefits October 13. The bigger checks aim to help offset rising prices.

The average monthly check is estimated to increase to $1,404 in January — a $27 increase from $1,377 a month.

Millions of Americans rely on Social Security to help make ends meet, and many have been struggling in the face of higher prices on essentials like health care, rent and food. Not all of the recipients are retired workers — many are people with disabilities, or surviving spouses and children.

The 2 percent increase is the highest since 2012 when retirees got a 3.6 percent raise.

At the start of 2017, recipients saw an increase of just 0.3 percent.

In 2016, there was no increase. Over the summer, the Social Security trustees had projected a 2.2 percent increase in benefits.

Around 62 million Americans will receive around $955 billion in Social Security benefits this year, according to the Social Security Administration.

The annual cost of living adjustment (COLA) was introduced in 1975 and is based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). CPI-W tracks how much consumers pay for goods and services.

But some argue the increase is not enough to cover rising prices.

“For the tens of millions of families who depend on Social Security for all or most of their retirement income, this cost of living increase may not adequately cover expenses that rise faster than inflation including prescription drug, utility and housing costs,” said AARP CEO Jo Ann Jenkins.

The Social Security Administration also announced the maximum amount of earnings subject to the Social Security tax will increase to $128,700 from $127,200.

(  VASEL, K., CNN Money, 13Oct2017)

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Undocumented Workers Are Keeping Social Security Afloat

 

In 2013, analysts at the Social Security Administration calculated that in 2010 undocumented immigrants had paid $13 billion into the system and were making on average $34,000 a year at the time. From 1996 to 2003, undocumented workers paid a combined $90 billion into both Social Security and Medicare.

Since 1996, immigrants who didn’t qualify to get a Social Security card numbers have been able to apply for an Individual Taxpayer Identification Number (ITIN) from the IRS. ITINs were originally granted to foreign citizens who were active investors in the American real estate market.

A substantial percentage of undocumented immigrants in the U.S. pay billions in taxes annually and own their own homes, according to a 50 state report from the Institute on Taxation and Economic Policy (The Study).

With an IRS ITIN number, undocumented residents can legally open a bank account and apply for mortgage financing and close on a real estate transaction.

“Contrary to a lot of myths out there, The Study shows that the undocumented pay a very significant share of their income to state and local taxes,” Meg Wiehe, a co-author of the report told CBS MoneyWatch. “They are also establishing roots here because they are committed to their communities.”

One in three of the nation’s undocumented families own a home, according to the ITEP report. States such as Idaho and New Mexico report undocumented ownership rates as high as 46 percent. Those statistics are based on research done by the Migration Policy Institute and data collected by the U.S. Census’s American Community Survey.

Expert opinion remains sharply divided on the impact of the undocumented on the U.S. economy.

While analysts at the conservative Heritage Foundation concede undocumented immigrant households do contribute tax revenue, they make the case that what they contribute is far outweighed by what their presence here in the U.S. costs taxpayers.

“In 2010, the average unlawful immigrant household received around $24,721 in government benefits and services while paying some $10,334 in taxes,” according to Robert Rector and Jason Richwine in their analysis for the Heritage Foundation.

“This generated an average annual fiscal deficit (benefits received minus taxes paid) of around $14,387 per household,” their analysis said. “This cost had to be borne by U.S. taxpayers. Amnesty would provide unlawful households with access to over 80 means-tested welfare programs, Obamacare, Social Security, and Medicare. The fiscal deficit for each household would soar.”

While the expert debate over this hot button issue has raged for years, Pew Research Center polling suggests American public opinion has shifted greatly since the early 1990s. In a 2015 poll, 45 percent of those surveyed expressed the opinion that immigrants were a net benefit for the U.S. versus 37 percent who felt their presence had a negative impact.

 

One of the ironies of the challenging financial future faced by the Social Security Administration is this seldom-discussed fact: Undocumented workers contribute about $13 billion per year to the Social Security Trust Fund, and only get back a small fraction, adding a bit of black ink to a balance sheet in sore need of a boost. These Social Security payments are a proxy of sorts for the potential power of these workers who now stand in the shadows of the economy.

These immigrants are often accused of creating outsize social services costs, but in this important instance the opposite is true. Undocumented workers using fake, invalid, or borrowed Social Security numbers are subject to payroll taxes but usually receive nothing back.

The extent of their contributions hints at the vast scale of the underground economy.

The chief actuary of the Social Security Administration estimates that, out of the approximately 7 million unauthorized workers currently in the US labor force, about 3 million use either false or expired Social Security numbers.

The payroll taxes paid by these unauthorized workers go into the Social Security’s “Earnings Suspense File” — in effect, money without a lawful home.

“You could say legitimately that had we not received the contributions that we have had in the past from undocumented immigrants . . . that would of course diminish our ability to be paying benefits for as long as we now can,”. Undocumented immigrants have contributed $100 billion into Social Security over the last decade.

Major immigration reform legislation would provide work authorization and Social Security numbers for an estimated 11 million immigrants working here illegally. But without changes to protect Social Security, illegal workers whose status later changes could become entitled to benefits based on jobs worked under fake and invalid Social Security numbers. Social Security could be on the hook for hundreds of billions in new liabilities according to a new  research report based on data from the Social Security Administration.

Unauthorized immigrants getting jobs show employers false or invalid Social Security numbers. When the Social Security Administration receives copies of W2s in which the name and Social Security number do not match those on Social Security’s records, they go into the Earnings Suspense File (ESF). The W2s remain on file until the earnings can be reconciled with the real worker, even if that occurs years later. Since 2000, the Social Security Administration has received about 9.3 million such W2s per year on average, representing more than $69.4 billion per year in earnings.

The earnings reported to the ESF over the past 11 years now total more than $763.5 billion, unadjusted for inflation. “Those earnings are important, because that’s what the Social Security Administration uses to determine entitlement and initial benefit amounts — not the amount of taxes paid in,” .

Although Social Security is aware of the problem, no government estimates of the potential future cost of benefits based on work under fake Social Security numbers exist.

Immigration advocates say that the taxes on earnings worked under invalid Social Security numbers help boost Social Security’s financing and that workers would have little chance of collecting benefits. “But that would change under immigration reform that provides work authorization”. “Work authorization and a valid Social Security number are the two requirements that would allow former unauthorized workers to file a claim for benefits.”

That could have significant implications for future Social Security costs because, under current law, the fraudulent use of Social Security numbers to gain employment is not penalized. “One would think that the earnings under fake Social Security numbers would not be used to calculate Social Security benefits. But to the contrary, under current policies, those earnings can be reinstated — no questions asked”.

Social Security uses all earnings to determine entitlement even for jobs worked under fake Social Security numbers. If workers have kept evidence of earnings, like copies of their W2s, tax return earnings under invalid Social Security numbers would be reinstated to the new valid number.

“Congress is considering Social Security changes that would cut the benefits of U.S. citizens and authorized workers who paid into the system under valid Social Security numbers”. “Yet our current polices reward people for the use of fraudulent Social Security numbers, undermining the financial solvency of the program”.

“You could say legitimately that had we not received the contributions that we have had in the past from undocumented immigrants . . . that would of course diminish our ability to be paying benefits for as long as we now can,”. Undocumented immigrants have contributed $100 billion into Social Security over the last decade.

(In part based on an article by Robert Hennelly in MoneyWatch February 29, 2016)

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Mentally Impaired Social Security Claimants Commit Suicide After Being Told That Benefits Will End

Lawsuit blames two suicides on notice of imminent cut in disability benefits.

 A move by the Social Security Administration (SSA) to end disability checks for thousands of people in Kentucky played a substantial role in two people killing themselves, a federal lawsuit alleges.

 

The two dead claimants committed suicide by gunshot. They blew out their brains. Melissa Jude and Leroy Burchett, were despondent after getting notice that they would lose benefits, the lawsuit alleges.

Burchett shot himself in the chin on June 1. Jude shot herself in the head the next day, according to the lawsuit.

The lawsuit further alleges that two Social Security recipients were distraught over the notice from SSA that they would lose their livelihood and might have to repay pass benefits received.

Social Security has notified thousands of benefit recipients of the impending loss of checks.

This case is linked to allegations of fraud in disability cases of Kentucky lawyer Eric Conn.

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How To Win Your Social Security Disability Claim? Simple, Find The Right Judge.

Disability Claim Denied? Find the Right Judge

Nine percent of the judges who hear appeals grant benefits 90% of the time, costing taxpayers tens of billions.

To all parties involved in a trial, the slam of a gavel should indicate that justice has been served. Unfortunately, this is often not the case with Social Security Disability (SSDI and SSI) appeals. A system designed to serve society’s vulnerable has morphed into a benefit bonanza that costs taxpayers billions of dollars more than it should. The disability trust fund will become insolvent in 2016, and Congress would be wise to begin much needed reform.

A disability applicant whose claim is rejected during the Social Security Administration’s (SSA) first two stages ( before State Disability Determination Services)  can appeal the decision to administrative-law judges (ALJ). These judges must impartially balance the claims of the applicant against the interests of taxpayers.

Over the past decade judicial impartiality has declined significantly, as many administrative-law judges uncritically approve most claims. In 2008 judges on average approved about 70% of claims before them, according to the Social Security Administration. Nine percent of judges approved more than 90% of benefit requests that landed on their desks.

Do nine out of every 10 applicants appealing denied claims need societal support? There are reasons for skepticism. The data show that judges who are generous in granting benefits are consistently generous over time—which is suspicious, since each year they should hear a random set of new cases. The more discerning judges—those who award benefits less than 90% of the time—are more unpredictable from year to year.

(Photo: Getty Images/Illustration Works)

If the judges with award rates topping 90% are removed from the data, the rate of denial increases by 2%-3% annually. That amounts to 98,000 claims from 2005-11. Assuming an average lifetime award of $250,000, taxpayers would have saved $23 billion over those six years had the worst judges left the bench. If we lower the threshold to exclude judges with award rates north of 85%, these savings increase to $41 billion.

Former Social Security Commissioner Michael Astrue, who took office in 2007, made much-needed changes. Incompetent incumbents saw their influence diluted by new judges drawn from fresh candidate lists. Judicial decisions are now randomly reviewed to ensure that the court remains impartial and fair to taxpayers. Judges were limited to hearing 1,000 cases a year (the figure has since been lowered to 700), and individuals are allowed only one disability application at a time.

Mr. Astrue’s reforms have produced good results. In 2011 judges with award rates exceeding 90% heard a mere 4% of all cases, a 63.6% decline from 2008. But Mr. Astrue’s term expired in 2013, and these changes can easily be undone, either intentionally by future administrators, or unintentionally as bad habits slip back into the system.

His program to increase accountability and judicial turnover should be made permanent. Congress should also institute 15-year term limits for judges, who currently enjoy lifetime tenure, to ensure that fresh legal minds are joining the stale judicial aristocracy. A term of a decade and a half is long enough to insulate judges and prevent undue political influence.

The system faces a huge backlog, made worse by claimants who play adjudication roulette, filing and then withdrawing appeals in hopes of drawing a generous judge. Congress can limit this gamesmanship by allowing only one application per claimant in a three-year period. Because judges must marshal more documentation for a denial than an approval, they have an incentive to grant benefits to keep the system chugging along. The agency can fix this by further limiting the number of cases each judge must decide to 500 from 700.

The system is further complicated because even if a claimant has legal counsel, the judge must advocate on the claimant’s behalf. This dual role should be ended. Most claimants—85%—now have third-party representation. These professionals should be held responsible for getting supporting materials into court expeditiously and completely so the record can be closed in a timely manner.

Even under better legal rules, judges will still face rigid and outdated guidelines for granting benefits. The framework they must follow—known as the Medical Vocational Grid (known as The Listings)—is formulaic to the point of senselessness. For instance, the bar to benefits approval is lower for someone who doesn’t speak English, on the theory that it is difficult to find a job without the language. But that English rule is also applied to claimants from Puerto Rico, where the language of business is Spanish.

These guidelines (in The Listings) also do not give due consideration to actual labor market experience, dictating a looser approval standard for someone with only a high-school degree, even if the person has succeeded in the labor force for decades.

The framework (of The Listings) was developed in the late 1950s, for the previous generation’s workforce, and hasn’t been updated since 1978. Decades ago workers ages 50 or 55 might have been considered retiring, but this is no longer generally the case. Novel job-training programs also make it easier than ever for workers to move into new fields and make up for low levels of education, and new disability criteria would account for these changes.

These solutions would begin to deliver meaningful reform to Social Security disability awards. They can restore dignity and efficacy to a troubled system.

(BY Mark J. Warshawsky And Ross A. Marchand, March 8, 2015) 

(Mr. Warshawsky is a visiting scholar at the Mercatus Center of George Mason University and a former member of the Social Security Advisory Board from 2006 to 2012. Mr. Marchand is a first-year economics graduate student at George Mason University.)

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Acting Social Security Commissioner Fails To Get Senate Confirmation Due To Possible Criminal Investigation

On February 14, 2013, Carolyn W. Colvin became the Acting Commissioner of the  Social Security Administration (SSA).  Prior to this designation, she served as a Deputy Commissioner at SSA.  Several high-level members of her inner circle of advisers are at the center of an  investigation concerning  a dysfunctional, $300 million computer system. An Inspector General’s (IG) Report has raised the possibility of a criminal investigation.

The Senate canceled vote on President Obama’s pick for Social Security Commissioner. Obama pick to head Social Security runs into more trouble; Senate cancels confirmation vote.

(AP)(14 Dec. 2014) — President Barack Obama’s pick to head the Social Security Administration has run into more trouble after Senate Democrats canceled a procedural vote on her nomination.

All 11 Republicans on the Senate Finance Committee signed a letter to Colvin on Wednesday, December 10th, noting that new information had come to light about a dysfunctional, $300 million computer system intended to speed the processing of disability claims. An interim inspector general (IG) report has raised questions about whether agency employees misled Congress about the extent of the problem, the lawmakers said.

“We cannot in good faith allow a nomination for any position that requires the advice and consent of the Senate to proceed to a vote as long as the specter of a potential criminal investigation surrounds the nominee and/or those in their inner circle,” read the letter from Utah Sen. Orrin Hatch, the top Republican on the committee, and its other GOP members.

“Agency representatives previously briefed members of the Senate and House regarding the issues raised in the Senate Republican Finance members’ letter,” the spokeswoman, LaVenia LaVelle, said in the statement. “The acting commissioner will respond timely and fully to the members requests, and continue to cooperate with Congress and any related investigation.”

Aides have long noted that the troubled computer system, which was intended to speed the processing of disability claims, was implemented under Colvin’s predecessor, Michael J. Astrue. And they have said that Colvin began a thorough investigation of the matter when she took over the agency last year.Still, the opposition from Republicans in the waning days of the lame-duck session of Congress threw Colvin’s confirmation into question. The current Congress is set to adjourn as soon as next week — and the Senate calendar will become increasingly full between now and then.

While senators have sped through several confirmations since the midterm elections, they have dealt mainly with non-controversial appointments. Colvin’s term, if she is confirmed, would last for six years, well into the next presidential administration.

And when the new Congress gavels in next month, the Senate will be controlled by Republicans, giving concerns raised by Republicans on the Senate Finance Committee added weight.Neither of Maryland’s Democratic senators, Barbara A. Mikulski and Ben Cardin, have responded to request for comment. Cardin is a member of the Finance Committee, which oversees Social Security.

The agency came under scrutiny this year amid revelations that it spent nearly $300 million and six years developing the computer system for disability claims, and it still does not work. The problems were known during Colvin’s confirmation hearing, and while Hatch mentioned them at the time he did not ask Colvin about them.

In their letter, the senators pointed to a news release from a House subcommittee last month regarding an interim IG Report that raised the possibility of a criminal investigation. The letter said the senators have sought to better understand the nature of that investigation but have been unable to do so because the probe is continuing.

“We have received information from whistleblowers that the ongoing investigation has centered around the activities of certain members of your immediate office, including several high-level agency officials, the senators wrote. “Therefore, it is essential to address your role with respect to this inquiry before each of us can make an informed decision on how to vote for your nomination once it reaches the full Senate for consideration.”

Obama nominated Carolyn W. Colvin to a six-year term as commissioner in June, and Colvin’s nomination cleared one procedural hurdle in the Senate Saturday, Dec. 13. However, Senate Majority Leader Harry Reid, D-Nev., canceled an upcoming vote, making it likely Colvin won’t get a vote until next year, when Republicans take control of the Senate.

Colvin’s nomination would have taken up valuable floor time as the Senate rushes to finish its year-end business. Senators could speed the process but that would require a bipartisan agreement.

Colvin’s nomination first ran into trouble when a group of Republican senators said they would try to block it while investigators look into a $300 million computer project at the agency.

The project, which doesn’t work, predates Colvin’s tenure — she has been acting commissioner since Feb. 2013. But an inspector general’s investigation is ongoing.

“I don’t know how the Senate can, with good conscience, vote to confirm anyone with this type of ongoing investigation going on around their immediate office,” Sen. Orrin Hatch, R-Utah, said in a floor speech. “It may very well turn out that Ms. Colvin did nothing wrong, but we need to know for sure.”

Colvin defended her integrity and her long career in government in a recent interview with The Associated Press.

“I’ve worked in government my entire life. There’s never been a suggestion, personal or professional, of any wrongdoing,” Colvin said in the interview, which had been scheduled before the controversy erupted.

“I’m certainly not ending my career with that,” Colvin continued. “I came out of retirement to help this organization, not hurt it.”

Six years ago, Social Security embarked on an aggressive plan to replace outdated computer systems overwhelmed by a flood of disability claims. But the project has been racked by delays and mismanagement, according to an assessment commissioned by the agency over the summer.

The new computer system is supposed to help workers process and manage disability claims. But the project is still in the testing phase and the agency can’t say if it will ever be operational or how much it will cost.

Colvin, 72, first worked as a deputy commissioner at Social Security in the 1990s. She left the agency in 2001 to become director of human services for the District of Columbia. She later had a similar job in Montgomery County, Maryland.

Colvin returned to Social Security in 2010 as deputy commissioner.

Associated Press

Throughout her career, Ms. Colvin has managed programs that help people with their healthcare and financial needs.  She previously held key executive positions at Social Security Headquarters: Deputy Commissioner for Policy and External Affairs (1994–1996), Deputy Commissioner for Programs and Policy (1996–1998), and Deputy Commissioner for Operations (1998–2001).

Prior to returning to SSA, Ms. Colvin was the Director of Human Services for the District of Columbia (2001-2003); the Director of the Montgomery County Department of Health and Human Services (2003-2007); the Chief Executive Officer of AMERIGROUP Community Care of the District of Columbia (2007–2008); and, the Special Assistant to the Secretary of Maryland’s Department of Transportation (2009-2011).  In addition, Ms. Colvin served as the Secretary of Maryland’s Department of Human Resources (1989-1994).

Ms. Colvin has received numerous awards and recognition for her managerial expertise and creativity, including Maryland’s Top 100 Women Award from the Daily Record (2005) and the Women of Achievement Award from Suburban Maryland Business and Professional Women (2005).  She has served on a variety of boards and commissions, including the National Committee to Preserve Social Security and Medicare.

Ms. Colvin earned her graduate and undergraduate degrees in business administration from Morgan State University.  Additionally, she completed the Senior Executives in State and Local Government Program at Harvard University, the Maryland Leadership Program, and the Greater Baltimore Leadership Program. Ms. Colvin is from Maryland and currently resides in Anne Arundel County.  She has one son and six grandchildren.

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The Earnings Suspense Fund at Social Security

80082-social-security-card-with-cash-in-hands

One of the ironies of the challenging financial future faced by the Social Security Administration is this seldom-discussed fact: Undocumented workers contribute about $13 billion per year to the Social Security Trust Fund, and only get back a small fraction, adding a bit of black ink to a balance sheet in sore need of a boost. As President Obama mulls whether and when to enact executive orders that would affect the status of up to 11 million undocumented immigrants in the country, these Social Security payments are a proxy of sorts for the potential power of these workers who now stand in the shadows of the economy.

These immigrants are often accused of creating outsize social services costs, but in this important instance the opposite is true. Undocumented workers using fake, invalid, or borrowed Social Security numbers are subject to payroll taxes but usually receive nothing back. The extent of their contributions hints at the vast scale of the underground economy — and at the economic benefits that could be harnessed by giving undocumented workers a legal way to move out of it.

The chief actuary of the Social Security Administration recently told Vice News that, out of the estimated 7 million unauthorized workers currently in the US labor force, about 3 million use either false or expired Social Security numbers. The payroll taxes paid by these unauthorized workers go into the Social Security’s “Earnings Suspense File” — in effect, money without a lawful home.

“You could say legitimately that had we not received the contributions that we have had in the past from undocumented immigrants . . . that would of course diminish our ability to be paying benefits for as long as we now can,”. Undocumented immigrants have contributed $100 billion into Social Security over the last decade.

Major immigration reform legislation would provide work authorization and Social Security numbers for an estimated 11 million immigrants working here illegally. But without changes to protect Social Security, illegal workers whose status later changes could become entitled to benefits based on jobs worked under fake and invalid Social Security numbers. Social Security could be on the hook for hundreds of billions in new liabilities according to a new  research report based on data from the Social Security Administration.

Unauthorized immigrants getting jobs show employers false or invalid Social Security numbers. When the Social Security Administration receives copies of W2s in which the name and Social Security do not match those on Social Security’s records, they go into the Earnings Suspense File (ESF). The W2s remain on file until the earnings can be reconciled with the real worker, even if that occurs years later. Since 2000, the Social Security Administration has received about 9.3 million such W2s per year on average, representing more than $69.4 billion per year in earnings.

The earnings reported to the ESF over the past 11 years now total more than $763.5 billion, unadjusted for inflation. “Those earnings are important, because that’s what the Social Security Administration uses to determine entitlement and initial benefit amounts — not the amount of taxes paid in,” .

Although Social Security is aware of the problem, no government estimates of the potential future cost of benefits based on work under fake Social Security numbers exist.

Immigration advocates say that the taxes on earnings worked under invalid Social Security numbers help boost Social Security’s financing and that workers would have little chance of collecting benefits. “But that would change under immigration reform that provides work authorization”. “Work authorization and a valid Social Security number are the two requirements that would allow former unauthorized workers to file a claim for benefits.”

That could have significant implications for future Social Security costs because, under current law, the fraudulent use of Social Security numbers to gain employment is not penalized. “One would think that the earnings under fake Social Security numbers would not be used to calculate Social Security benefits. But to the contrary, under current policies, those earnings can be reinstated — no questions asked”.

Social Security uses all earnings to determine entitlement even for jobs worked under fake Social Security numbers. If workers have kept evidence of earnings, like copies of their W2s, tax return earnings under invalid Social Security numbers would be reinstated to the new valid number.

“Congress is considering Social Security changes that would cut the benefits of U.S. citizens and authorized workers who paid into the system under valid Social Security numbers”. “Yet our current polices reward people for the use of fraudulent Social Security numbers, undermining the financial solvency of the program”.

“You could say legitimately that had we not received the contributions that we have had in the past from undocumented immigrants . . . that would of course diminish our ability to be paying benefits for as long as we now can,”. Undocumented immigrants have contributed $100 billion into Social Security over the last decade.

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More Bad News From Social Security

The Biggest Change to Social Security You’ve Never Heard About

 

2014-06-13-ssaofficeclosed.jpg

There’s been lots of debate and discussion lately about how to shore up Social Security for future generations. But already there are dramatic changes underway that threaten to end Social Security as we know it — yet almost no one has even heard of it.

The plan is called Vision 2025, and every working American has a stake in it.

To explain the significance of what’s going on, let me paint a picture. Say you’re the CEO of a major corporation doing $850 billion in business annually out of 1,200 locations across the country. More than 43 million clients walked through your doors in the past year, seeking one-on-one appointments with your experienced customer service representatives on matters affecting their financial security.

But there’s a storm brewing. You’ve lost 12 percent of your employees in just the past three years, and another third of the workforce is projected to retire in the next decade. Customer demand is breaking records, yet failure to fill vacancies means longer waits for appointments. Customers are waiting three times longer than last year for assistance on your 1-800 phone line, while the website that was set up to take pressure off your field offices can’t meet demand either.

So what do you do? If you’re the head of the Social Security Administration, you lay out a plan to close most of your 1,200 field offices, not replace the 30,000 employees about to walk out the door, and force your customers to conduct nearly all of their business using a phone line and website that already are overwhelmed.

This is the real-life scenario playing out at SSA right now, and the ramifications of decisions made today will affect every working man and woman in this country for generations.

This fall, SSA will unveil its long-range strategic plan for the next 10 years, the so-called Vision 2025 plan. A draft of the plan, being developed for SSA by the National Academy of Public Administration, is frightening:

  • The bulk of SSA’s field offices would be shut down, leaving the agency with a “significantly smaller and more virtual workforce.”
  • Many of the employees left behind would be “generalists” who lack the technical skills and expertise to address benefits questions.
  • Customers could reach an actual claims representative only in “very limited circumstances,” either through in-person visits, phone calls, online chats or video conferences. In the vast majority of cases, the only way to interact with SSA would be through “online self-service delivery.”

Self-service checkout may work at grocery stores, but it’s not the right model for an agency tasked with determining complex retirement and disability benefits for tens of millions of Americans each year. Do they really expect grandpa to hop on his iPad Mini to apply for benefits and get all his questions answered?

Most of the individuals contacting SSA for help are elderly, disabled or indigent. Many others are active seniors who simply are overwhelmed by the complicated maze of laws, regulations and policies pertaining to retirement benefits. They deserve and expect face-to-face interaction with skilled employees who can ensure they receive all the benefits they are owed.

Unfortunately, SSA seems determined to cannibalize itself. In addition to leaving thousands of positions vacant, management already has shuttered 80 field offices and dramatically reduced hours at remaining offices — even before its strategic plan is finalized.

As the representative for the bulk of SSA’s workforce, our union is working hard to save Social Security for current and future generations. This week, we plan to submit testimony at a congressional hearing on SSA’s plan to dismantle the program. AFGE will not let it die without a fight.

I urge you to join the discussion about a program that all of us will ultimately depend on. Your retirement security is at stake.

( By J. David Cox Sr., National President of the American Federation of Government Employees, which represents more than 670,000 federal and D.C. government employees nationwide, including more than 28,000 SSA field office employees across the country

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Social Security’s 79 th Birthday Celebration Marred By Massive Problems

Social Security Has No reason To Celebrate Its 79th Birthday, Massive Problems Are Rampant

SSA Service Cuts, Computer

Problems Plague

Social Security’s 79th Birthday.

Recent reports slam the Social Security Administration (SSA) for (1) reduction in staff, (2) cutting operating hours and (3) computer systems that do not work.
The SSA should have reason to celebrate. After all, August 14, 2014, marked its 79th Birthday, the day when President Franklin Roosevelt signed the Social Security Act, which ushered in the landmark entitlement program.
However, the SSA’s birthday was less than cheerful, coming on the heels of an audit that criticized the SSA for deciding to cut staffing and reduce its service hours. At the same time, the SSA learned that its new multimillion-dollar computer system may very well have turned out to be an expensive failure.
According to the audit produced by the SSA’s own Inspector General’s (IG)  Office, “overall service has suffered” because of the agency’s 2011 decision to trim its staff by nearly 11,000 employees and reduce its weekly field office hours from 35 to 27. The audit found that the end results of the agency’s cutbacks were felt as soon as fiscal year 2013, when “the public waited longer for a decision on their disability claim, to talk to a representative on the National 800-Number and to schedule an appointment” at a field office.
The process of applying for Social Security disability benefits takes a significant amount of time and is very complex. The Inspector General’s findings represent unwelcome news for disabled Americans who need a speedy resolution of their claims.
Compounding the critical assessment from the Inspector General’s Office, an internal report has concluded that the SSA’s new $300 million computer system, which was designed to handle its disability claims, does not work.
The agency laid the groundwork for the new system in 2008 when its aging computers were swamped by disability claims. But the recent report found that delays and mismanagement still plague the new system. And SSA officials have not been able to answer queries on when the new system will be up and running.
The Social Security Administration may have thought that its new computer system could make up for its decision to cut back service, but that assumption was dependent on the system actually working. Instead, already long wait times for the processing of disability claims are getting even longer.

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Social Security Administration Uses IRS To Seize Poor Peoples’ Tax Refunds To Pay For Debts Incurred By Their Parents

Social Security, Treasury target taxpayers for their parents’ decades-old debts.

Evelyn Hockstein/For The Washington Post – Mary Grice of Takoma Park, MD, talks with her attorney Robert Vogel, at Vogel’s home in Rockville Maryland, April 5, 2014.

A few weeks ago, with no notice, the U.S. government intercepted Mary Grice’s tax refunds from both the IRS and the state of Maryland. Grice had no idea that Uncle Sam had seized her money until some days later, when she got a letter saying that her refund had gone to satisfy an old debt to the government — a very old debt.
When Grice was 4, back in 1960, her father died, leaving her mother with five children to raise. Until the kids turned 18, Sadie Grice got survivor benefits from Social Security to help feed and clothe them.

Now, Social Security claims it overpaid someone in the Grice family — it’s not sure who — in 1977. After 37 years of silence, four years after Sadie Grice died, the government is coming after her daughter. Why the feds chose to take Mary’s money, rather than her surviving siblings’, is a mystery.

Across the nation, hundreds of thousands of taxpayers who are expecting refunds this month are instead getting letters like the one Grice got, informing them that because of a debt they never knew about — often a debt incurred by their parents — the government has confiscated their check.

The Treasury Department has intercepted $1.9 billion in tax refunds already this year — $75 million of that on debts delinquent for more than 10 years, said Jeffrey Schramek, assistant commissioner of the department’s debt management service. The aggressive effort to collect old debts started three years ago — the result of a single sentence tucked into the farm bill lifting the 10-year statute of limitations on old debts to Uncle Sam.

No one seems eager to take credit for reopening all these long-closed cases. A Social Security spokeswoman says the agency didn’t seek the change; ask Treasury. Treasury says it wasn’t us; try Congress. Congressional staffers say the request probably came from the bureaucracy.

The only explanation the government provides for suddenly going after decades-old debts comes from Social Security spokeswoman Dorothy Clark: “We have an obligation to current and future Social Security beneficiaries to attempt to recoup money that people received when it was not due.”

Since the drive to collect on very old debts began in 2011, the Treasury Department has collected $424 million in debts that were more than 10 years old. Those debts were owed to many federal agencies, but the one that has many Americans howling this tax season is the Social Security Administration, which has found 400,000 taxpayers who collectively owe $714 million on debts more than 10 years old. The SSA expects to have begun proceedings against all of those people by this summer.

“It was a shock,” said Grice, 58. “What incenses me is the way they went about this. They gave me no notice, they can’t prove that I received any overpayment, and they use intimidation tactics, threatening to report this to the credit bureaus.”

Grice filed suit against the Social Security Administration in federal court in Greenbelt,MD., alleging that the government violated her right to due process by holding her responsible for a $2,996 debt supposedly incurred under her father’s Social Security number.

Social Security officials told Grice that six people — Grice, her four siblings and her father’s first wife, whom she never knew — had received benefits under her father’s account. The government doesn’t look into exactly who got the overpayment; the policy is to seek compensation from the oldest sibling and work down through the family until the debt is paid.

The Federal Trade Commission, on its Web site, advises Americans that “family members typically are not obligated to pay the debts of a deceased relative from their own assets.” But Social Security officials say that if children indirectly received assistance from public dollars paid to a parent, the children’s money can be taken, no matter how long ago any overpayment occurred.

“While we are responsible for collecting delinquent debts owed to taxpayers, we understand the importance of ensuring that debtors are treated fairly,” Treasury’s Schramek said in a statement. He said Treasury requires that debtors be given due process.

Social Security spokeswoman Clark, who declined to discuss Grice’s or any other case, even with the taxpayer’s permission, said the agency is “sensitive to concerns about our attempts to arrange repayment of overpayments.” She said that before taking any money, Social Security makes “multiple attempts to contact debtors via the U.S. Mail and by phone.”

Grice, who works for the Food and Drug Administration and lives in Takoma Park, in the same apartment she’s resided in since 1984, never got any notice about a debt.

Social Security officials told her they had sent their notice to her post office box in Roxboro, N.C. Grice rented that box from 1977 to 1979 and never since. And Social Security has Grice’s current address: Every year, it sends her a statement about her benefits.

Their record-keeping seems to be very spotty,” she said.

Treasury officials say that before they will take someone’s refund, the agency owed the money must certify the debt, meaning there must be evidence of the overpayment. But Social Security officials told Grice they had no records explaining the debt.

“The craziest part of this whole thing is the way the government seizes a child’s money to satisfy a debt that child never even knew about,” says Robert Vogel, Grice’s attorney. “They’ll say that somebody got paid for that child’s benefit, but the child had no control over the money and there’s no way to know if the parent ever used the money for the benefit of that kid.”

Grice, the middle of five children, said neither of her surviving siblings — one older, one younger — has had any money taken by the government. When Grice asked why she had been selected to pay the debt, she was told it was because she had an income and her address popped up — the correct one this time.

Grice found a lawyer willing to take her case without charge. Vogel is exercised about the constitutional violations he sees in the retroactive lifting of the 10-year limit on debt collection. “Can the government really bring back to life a case that was long dead?” the lawyer asked. “Can it really be right to seize a child’s money to satisfy a parent’s debt?”

But many other taxpayers whose refunds have been taken say they’ve been unable to contest the confiscations because of the cost, because Social Security cannot provide records detailing the original overpayment, and because the citizens, following advice from the IRS to keep financial documents for just three years, had long since trashed their own records.

In Glenarm, Ill., Brenda and Mike Samonds have spent the past year trying to figure out how to get back the $189.10 tax refund the government seized, claiming that Mike’s mother, who died 33 years ago, had been overpaid on survivor’s benefits after Mike’s father died in 1969.

“It was never Mike’s money, it was his mother’s,” Brenda Samonds said. “The government took the money first and then they sent us the letter. We could never get one sentence from them explaining why the money was taken.” The government mailed its notice about the debt to the house Mike’s mother lived in 40 years ago.

The Social Security spokeswoman said the agency uses a private contractor to seek current addresses and is supposed to halt collections if notices are returned as undeliverable.

After hours on the phone trying and failing to get information about the debt Mike’s mother was said to owe, the Samondses gave up.

After waiting on hold for two hours with Social Security last week, Ted Verbich also concluded it wasn’t worth the time or money to fight for the $172 the government intercepted last month.

In 1977, Verbich, now 57, was in college at the University of Maryland when he took a full-time job in an accountant’s office. Because he was earning income, he knew he had to give up the survivor’s benefits his mother had received since his father died, when Verbich was 4. But his $70 monthly checks — “They helped with the car payment,” he said — kept coming for a short time after he started work, and Verbich was notified in 1978 that he had to repay about $600. He did.

Thirty-six years later, with no notice, “they snatched my Maryland tax refund,” said Verbich, a federal worker who has lived at the same address in Glendale, Md,. for 30 years and regularly receives Social Security statements there. The feds insisted that he owed $172 but could provide no documents to back up the claim.

Verbich has given up on getting his refund, but he wants a receipt stating that his debt to his country is resolved.

“I’ll put in the request,” a Social Security clerk told Verbich, “but in reality, you’ll never get anything.”

Grice was also told there was little point in seeking a waiver of her debt. Collections can only be halted if the person passes two tests, Clark said: The taxpayer must prove that he “is without fault, and [that] repayment of the overpayment would deprive the person of income needed for ordinary living expenses.”

More than 1,200 appeals have been filed on the old cases, Clark said; taxpayers have won about 10 percent of those appeals.

The Treasury initially held the full amount of Grice’s federal and state refunds, a total of $4,462. Last week, after The Washington Post inquired about Grice’s case, the government returned the portion of her refund above the $2,996 owed on her father’s account.

But unless the feds can prove that she ever received any of the overpayment, Grice wants all of her money back.

“Look, I love a good fight, especially for principle,” she said. “My mom used to say, ‘This country is carried on the backs of the little people,’ and now I see what she meant. This is really sad.”

(Fisher, Marc, The Washington Post, April 11, 2014, p. A1)

FORT THOMAS, Ky. – Cathy Frost opened her mail last week expecting to receive her tax refund. Instead, the Treasury Department sent her a notice that Uncle Sam was keeping her $344.

“I was taken aback. I had already allocated the funds. I couldn’t believe it,” the Fort Thomas woman said Friday.

“I didn’t know the government could just keep your refund. I felt like I was being robbed.”

Thousands of Americans had the same feeling when they got the same letter.

Most of them didn’t know that the Treasury Department has been confiscating tax refunds to recover government over-payments – mainly in Social Security benefits –  from beneficiaries or their survivors.

Some of the debts, as in Frost’s case, are their parents’ and are decades old.

There was such an outcry from taxpayers and politicians that the Social Security Administration announced this week that it was going to stop seizing tax refunds pending an SSA review.

But that doesn’t help Frost, a 55-year-old single woman who just lost her job due to downsizing.

She found out she might not get her money back, even though the SSA overpaid her father – and not her – some  40 years ago, when Frost was a minor.

The whole episode has left her shaking her head, frustrated with her government.

Frost said she called the 800 number on the letter last week and talked with an SSA office worker in Chicago.

They were unable to give me any details, only that there was an overpayment of $869.20 that may have been dispersed to myself or any family member,” she said.

Frost said she told the SSA rep that her father had died when she was 18.

“I wasn’t eligible for benefits, but my younger brother was 17 and my sister was 15, so they would have received benefits for a short period of time,” she said.

“It could even have been my father, because my mother died when I was 9, so he might have received benefits from her.

“They said, ‘Well, that must have been it.’ But they couldn’t tell me for sure. They said they didn’t have any details.

“They said all they could do is take a request to have somebody contact me and send me more information.

“I thought, ‘This is insane! How could people do that? And this is our government!’ “

When the SSA announced that it was suspending the seizure program, the agency directed Frost and other taxpayers to visit a field office and request a waiver for the overpayment.

Frost said she went to the SSA office in Florence on Good Friday, April 18th.

“They checked the records and told me it was an overpayment to my father when I was a minor, so I’m eligible for a waiver,” she said.  “They gave me a list of things I’m supposed to turn in, and if they determine I’m not able to afford the overpayment, they will waive it.”

Talk about government red tape.

The SSA wants to see Frost’s rent or mortgage payments, utilities, loans and credit card payments, medical and dental payments, insurance, property taxes and other fees and obligations, she said.

Before she left the office, the staffer gave her a list of local attorneys, she said.

She said she’s thinking about calling one.

“We’re not talking about that much money, and they’d probably decide I’m able to afford it. But I don’t make that much and I just got downsized from Avon after 17 years,” Frost said.

It doesn’t seem fair for the government to penalize me for something that happened when I was a minor, that I was not a part of.”

She said the government did not seize her brother’s or sister’s tax refunds – only hers.

The Social Security Administration says it has identified about 400,000 people with old debts. They owe a total of $714 million.

So far, the agency says it has collected $55 million.

There used to be a 10-year limit on collecting old debts, but thanks to an unidentified legislator who slipped a rider into the 2008 farm bill, the government can legally recover any overpayment, even from 40 years ago.

“It’s totally nuts,” Frost said.

CNBC (Apr 11, 2014)

US seizing tax refunds of children over parents’ debt?!

Friday, 11 Apr 2014

The government is now going through old records to see if it overpaid people on Social Security. If it thinks it did, it can now seize the IRS tax refund checks of the CHILDREN of those people it thinks it overpaid.

This isn’t a proposal—it’s already happening. For the past three years, the government has been confiscating hundreds of thousands of Americans’ tax refunds, according to the Washington Post. It has already confiscated $1.9 billion in tax refunds this year alone.

Peter Zander | Workbook Stock | Getty Images

The amazing thing is that the government is doing this even if it has little or no proof and no exact details. And the letters the government sends to unsuspecting taxpayers are frightening, use accusatory language, and include other financial threats.

“They gave me no notice, they can’t prove that I received any overpayment, and they use intimidation tactics, threatening to report this to the credit bureaus,” Mary Grice, who had her tax refunds seized a few weeks ago, is quoted as saying.

 

As usual, no one in the government is willing to take the responsibility for this new policy—Social Security said it didn’t do it, ask the Treasury Department. Treasury said—ask Congress.

If you think this is some kind of unprecedented outrage, you’re right. But here’s some advice: get used to it.

Tax refunds are clearly becoming the new promised land for government regulators and bureaucrats desperate for more revenues. We already know that confiscating tax refunds are the only real way the IRS will be able to impose Obamacare non-compliance penalties, and now it seems like the Social Security Administration is jumping on that bandwagon.

But there’s a more powerful and disturbing message here. Remember that the people who benefited from these alleged Social Security payments have not committed any crime—that’s why the government doesn’t need to provide any proof or real documentation. It’s more likely that the SSA simply screwed up and expects the descendants of its accidental beneficiaries to pay up. And again, the money comes out first before you can protest and find out why.

 

So, now we have yet another very good reason to make sure you don’t get a tax refund. First, getting a tax refund means you’ve given the government a free loan for 12 months.

Second, tax refunds are the only way you can be punished—rightly or wrongly—for any ObamaCare (Affordable Care Act) individual mandate non-compliance. And third, your tax refund is now a possible target for government bureaucrats who screwed up in the past and want to come after your money to make it right. If the SSA can do it, what’s to stop the other agencies?

After hearing this story, you wouldn’t think anyone would have to remind the public that Washington already controls too much of their money and has trampled on too much of our financial rights. But I will anyway since so many politicians and other elites don’t seem to be backing down on their incessant calls for more regulations, oversight and of course, more taxes.

 

Once again, we have a case of the government saying: “When you screw up, you pay. When we screw up, you also pay.”

If only our elected leaders would be so honest with us at election time.

This is commentary from Jake Novak, the supervising producer of “Street Signs.”

This is commentary from Jake Novak, the supervising producer of “Street Signs.”

 

POLITICS

Government suspends controversial program to recover money from adult children of dead taxpayers

social_security_benefits.jpg

The Social Security Administration announced Monday it is suspending a controversial program that goes after adult children of deceased taxpayers who the government claims were recipients of overpayments more than a decade ago.

Acting Social Security Commissioner Carolyn W. Colvin said she has directed an immediate halt to the three-year-old program while the agency does a review. The controversial program seized tax refunds in an effort to recoup the funds.

The move to stop the program came after many of the recipients and members of Congress complained to the federal agency.

“While this policy of seizing tax refunds to repay decades-old Social Security overpayments might be allowed under the law, it is entirely unjust,” Democratic Sens. Barbara Boxer of California and Barbara Mikulski of Maryland said in a letter to Colvin.

The program was authorized by a 2008 change in the law that allows Social Security and other federal agencies to use a Treasury program to seize federal payments to recoup debts that are more than 10 years old. Previously, there was a 10-year limit on using the program.

In most cases, the seizures are done through tax refunds.

The change was tucked into the 2008 farm bill — but trying to track down which lawmaker added in the one line that lifted the 10-year statute hasn’t been easy. And, not surprisingly, Washington lawmakers haven’t been eager to step up to the plate and take the blame.

Leslie Paige, vice president of policy and communications at Citizens Against Government Waste, says it’s a common problem in Congress.

“Lawmakers try to sneak in these one or two lines into gigantic legislative packages,” Paige told FoxNews.com. “It’s a dirty little secret. Members of Congress don’t know what they are voting on most of the time.”

Paige said the “unintended consequences” of these bills are felt hardest on Americans often left powerless to fight the federal government.

“All [lawmakers] care about is ‘Did my pork, my earmark, my little provision get into this gigantic mess of a bill?’” she said.

Following Colvin’s announcement Monday, Boxer said in a statement: “I am grateful that the Social Security Administration has chosen not to penalize innocent Americans while the agency determines a fair path forward on how to handle past errors.”

Mikulski added, “Garnishing these refunds to collect overpayments incurred through no fault of their own and based on decades-old errors is a policy that must not continue.” 

Sen. Chuck Grassley, R-Iowa, praised the Social Security Administration for suspending the debt collection but continued to raise questions Monday about how this started.

It’s not clear where that authority came in. There’s a difference between collecting decades-old debt from the debtors and decades-old debt from their kids,” he said.

The Social Security Administration says it has identified about 400,000 people with old debts. They owe a total of $714 million.

So far, the agency says it has collected $55 million.

Colvin said she was suspending the programpending a thorough review of our responsibility and discretion under the current law to refer debt to the Treasury Department.”

“If any Social Security or Supplemental Security Income beneficiary believes they have been incorrectly assessed with an overpayment under this program, I encourage them to request an explanation or seek options to resolve the overpayment,” Colvin said.

The Washington Post first reported on the program.

There are several scenarios in which people may have received overpayments as children. For example, when a parent of a minor child dies, the child may be eligible for survivor’s benefits, which are typically sent to the surviving parent or guardian.

If there was an overpayment made on behalf of the child, that child could be held liable years later, as an adult.

Also, if a child is disabled, he or she may receive overpayments. Those overpayments would typically be taken out of current payments, once they are discovered.

But if disability payments were discontinued because the child’s condition improved, Social Security could try to recoup the overpayments years later.

“We want to assure the public that we do not seek restitution through tax refund offset in cases when the debt in question was established prior to the debtor turning 18 years of age,” Social Security spokesman Mark Hinkle said in an email. “Also, we do not use tax refund offset to collect the debt of a person’s relative — we only use it to collect the overpaid benefits the person received for himself or herself.”

Hinkle said the debt collection could be waived if the person is without fault and repayment would “deprive the person of income needed for ordinary living expenses or would be unfair for another reason.”

The Associated Press contributed to this report

 

‘Government suspends controversial program to recover money from adult children of dead taxpayers’

 

Social_security_card cc

In the words of 2 people I spoke to about this story – “How can this be legal?”

Good question. At least they’re stopping it.

 

(From FoxNews.com)

The Social Security Administration announced Monday it is suspending a controversial program that goes after adult children of deceased taxpayers who the government claims were recipients of overpayments more than a decade ago.

Acting Social Security Commissioner Carolyn W. Colvin said she has directed an immediate halt to the three-year-old program while the agency does a review. The controversial program seized tax refunds in an effort to recoup the funds.

Another win for social media.

Click here for the article.

 

9


Source

“Government suspends controversial program to recover money from adult children of dead taxpayers.” Foxnews.com, 2014-04-14.

 

Nick Sorrentino

About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, his work has been featured at Breitbart.comReason.com, NPR.com, Townhall, The Daily Caller, and many other publications. A graduate of Mary Washington College he lives just outside of Washington DC where he can keep an eye on Leviathan.

House Ways and Means Oversight Subcommittee Chairman Rep. Charles Boustany, and Social Security Subcommittee Chairman Rep. Sam Johnson seek answers on Treasury debt recovery program

TreasuryHouse 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.

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