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Shakedown: Treasury seizing tax refunds from adult children to pay parents' Social Security debts
Hotair ^ | 04/11/2014 | AllahPundit

Posted on 04/11/2014 12:33:11 PM PDT by SeekAndFind

When I say “debts,” I don’t mean loans that the parents willingly sought from SSA. It would be bad enough to hold a kid responsible for that (since when are children responsible for their parents’ obligations?), but at least it would have been voluntarily incurred by mom/dad. The “debts” here are overpayments of Social Security benefits, the product of SSA’s own errors. The parents who received them might not have even realized they were getting money they weren’t supposed to have. And now, somehow, it’s junior’s problem.

But wait. It gets worse.

When [Mary] 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…

“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.”

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.

SSA insists that they did send notice — to a P.O. Box that Grice hasn’t owned for 35 years, even though they have her current address.

How can they demand restitution for a mistaken payment made in the late 1970s, let alone from someone who didn’t even receive it? Because: The farm bill that passed in 2011 lifted the 10-year statute of limitations on debts owed to the feds. Treasury has collected more than $400 million since then on very old obligations, many of them below the radar of public scrutiny because the amounts are often small enough, i.e. a few hundred dollars, that the targets find it’s cheaper to pay up than to fight. It’s a shakedown, based on the flawed assumption that a child not only must have benefited from the overpayment to his parent but that he/she received the entirety of the benefit, with little proof offered that the debt even exists. (One man who was forced to pay demanded a receipt from SSA affirming that his balance was now zero. The SSA clerk told him he’d put in the request but that the man shouldn’t expect to receive anything.) The only reason you’re hearing about Grice’s case, I think, is because they went after her for thousands, not hundreds, of dollars, which was enough of a hit to make her get a lawyer. Turns out that the feds had seized and then continued to hold her federal and state refunds, an amount greater than $4,400 — even though they were only demanding $2,996 from her to pay off her father’s debt. Lo and behold, once WaPo found out and started asking questions, the $1,400 excess was promptly returned to her. Amazing how fast bureaucracy can move when someone looks behind the curtain.

The whole thing is Kafkaesque — opaque, oppressive, arbitrary, and sinister in its indifference to making sure the right person pays so long as someone does. After reading the story, it’s not obvious to me what’s stopping Treasury from demanding a payment from every taxpayer whose parents are dead. If the chief witnesses are gone and the feds don’t have to prove that a child actually received any benefits from overpayment, the only “check” on this process is SSA’s willingness to tell the truth about who owes them money and how much. You trust them, don’t you?

Exit question from Karl: Isn’t holding children responsible for their parents’ retirement debts the governing model of the Democratic Party?


TOPICS: Constitution/Conservatism; Culture/Society; Government; News/Current Events
KEYWORDS: adultchildren; debts; irs; irsscandals; irsshakedown; parentsdebts; socialsecurity; ssa; taxrefunds; treasury
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1 posted on 04/11/2014 12:33:11 PM PDT by SeekAndFind
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To: SeekAndFind

Getting a tax refund is giving the gubmit an interest free loan for a year.


2 posted on 04/11/2014 12:35:31 PM PDT by AU72
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To: SeekAndFind
...."since when are children responsible for their parents’ obligations?"

It appears to me they are going to be responsible for 17 trillion.

3 posted on 04/11/2014 12:36:02 PM PDT by mosaicwolf (Strength and Honor)
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To: SeekAndFind

In ancient times children were held responsible for their parent’s debts. I thought the constitution did away with that. Am I mistaken?


4 posted on 04/11/2014 12:36:45 PM PDT by Gen.Blather
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To: SeekAndFind

Everyone is a criminal in Acirema - except for Mohammedans, illegal aliens, union thugs, blacks, homosexuals and the mental incompetants in Versailles on the Potomac.


5 posted on 04/11/2014 12:36:52 PM PDT by NTHockey (Rules of engagement #1: Take no prisoners. And to the NSA trolls, FU)
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To: AU72
"Getting a tax refund is giving the gubmit an interest free loan for a year."

You would be surprised how many people do not comprehend that fact.

6 posted on 04/11/2014 12:38:15 PM PDT by mosaicwolf (Strength and Honor)
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To: SeekAndFind

Just wait until they collect the fees (plus penalties and interest) from descendents of Civil War veterans who failed to return their government issued uniforms after the war.


7 posted on 04/11/2014 12:39:30 PM PDT by Cementjungle
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To: mosaicwolf; AU72

Many who get refunds paid nothing in, mostly Democrats


8 posted on 04/11/2014 12:39:47 PM PDT by GeronL (Vote for Conservatives not for Republicans!)
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To: NTHockey

Everyone? That’s about 48% of the population you just listed there!


9 posted on 04/11/2014 12:40:10 PM PDT by MNDude
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To: SeekAndFind
Unfreakinbelievable! Fedzilla is completely out of control. Maybe this will wake America up?
10 posted on 04/11/2014 12:41:28 PM PDT by Pajamajan (Pray for our nation. Thank the Lord for everything you have. Don't wait. Do it today.)
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To: SeekAndFind

Are they going after those that received welfare benefits? Fairness to me says that they would go after those people first.


11 posted on 04/11/2014 12:41:52 PM PDT by boycott
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To: mosaicwolf

It is far more than that when you count unfunded liabilities such as SS and Mediscare.


12 posted on 04/11/2014 12:42:05 PM PDT by Blood of Tyrants (Haven't you lost enough freedoms? Support an end to the WOD now.)
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To: AU72

I love this story, more and more every day the people who vote for more government are getting just what they deserve.....

Wait till people start hiding wealth and the government comes to their homes and takes them away to be re-educated like the other fascists in NAZI Germany did......


13 posted on 04/11/2014 12:43:59 PM PDT by stockpirate (Only a tidal wave of tyrants blood will return our tree of liberty......)
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To: Gen.Blather

“Section 9: No Bill of Attainder or ex-post facto Law shall be passed.”

I guess that means the Government is not breaking the law. They did not pass a law to do it. They just did it.


14 posted on 04/11/2014 12:45:55 PM PDT by jim_trent
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To: stockpirate
Wait till people start hiding wealth and the government comes to their homes and takes them away

They'll find out that garnishment is not something you put on your salad.

15 posted on 04/11/2014 12:46:20 PM PDT by AU72
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To: Pajamajan

If it wakes up liberals they’ll claim it’s the republicans’ fault and continue to vote for those who are taking their money.


16 posted on 04/11/2014 12:48:17 PM PDT by VerySadAmerican
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To: SeekAndFind

We just need to bring back debtors’ prisons to fix all of this....oh, wait...


17 posted on 04/11/2014 12:48:21 PM PDT by TADSLOS (The Event Horizon has come and gone. Buckle up and hang on.)
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To: SeekAndFind

Leeches Rosie....


18 posted on 04/11/2014 12:51:20 PM PDT by Huskrrrr
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To: AU72

Do your best not to be in a situation where you are going to get a “refund”. A refund is nothing but your overpayment that the gov holds on to, then returns to you.
However, California started issuing IOU’s a couple of years ago. Small business men tried to cash the IOU’s at banks and were told to go pound sand. Also, obamacare has provisions to withhold your refund if you have not paid your fine for not having insurance.
Remember the statement, “As California goes, so goes the country”. Politically we are there already. Now comes the enforcement.


19 posted on 04/11/2014 12:51:55 PM PDT by Texas resident (The democrat party is now the CPUSA)
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To: SeekAndFind

Waiting for Obama’s response. I’m sure a reporter will ask about this/s


20 posted on 04/11/2014 12:54:41 PM PDT by RginTN
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