This may be surprising to you but a levy on your Social Security payments does not necessarily stop after the statute of limitations on the collection of tax expires. Yes, collection action after the statute of limitations expires must stop and tax liens must be released. But, as the Eleventh Circuit explains here, the seizure of one’s Social Security benefits is an entire seizure of all benefits, now and in the future, at the source of the seizure:
“Instead, the IRS seized his entire Social Security benefit—that is, his “fixed and determinable right to payment” of his Social Security benefit in monthly installments—immediately upon issuing the notice of levy in June 2013. 26 C.F.R. § 301.6343-1(b)(1)(ii); see Phelps, 421 U.S. at 337. Having seized his entire benefit before the expiration of the collection limitations period, the IRS was not required to relinquish it after the period expired. See 26 C.F.R. § 301.6343-1(b)(1)(ii).”