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Retirement should be a time of peace—not stress over back taxes.
But the truth is, many seniors still owe the IRS even after they stop working. The IRS doesn’t go away when you retire. In fact, they can take part of your Social Security, pension, or savings if your taxes remain unpaid.
If you’re a senior dealing with tax debt, you are not alone. The good news? Help is available.
At Priority Tax Relief, we specialize in working with retired individuals. We guide you through legal and safe ways to resolve your tax issues, reduce your debt, and protect your income.
Why Do Retired People Still Owe Taxes?
Just because you stop working doesn’t mean your tax responsibilities stop. You may still owe taxes on:
Social Security benefits
Pension income
IRA or 401(k) withdrawals
Part-time jobs or freelance work
Capital gains from selling property
Sometimes, people retire with tax debt they didn’t know they had—or couldn’t afford to pay earlier. And unfortunately, the IRS can and will collect, unless you take action.
What Can the IRS Do to Seniors Who Owe?
The IRS has the legal power to:
Garnish up to 15% of your Social Security
Place a levy on pension payments
Seize tax refunds or bank funds
File a federal tax lien on your property
But before this happens, you have options to stop or avoid these actions. Our team is ready to help.
How Priority Tax Relief Helps Retirees
We understand how scary and confusing IRS notices can be—especially if you’re on a fixed income. Our team helps seniors:
Apply for Installment Agreements
Qualify for Currently Not Collectible (CNC)
Submit a request for Penalty Abatement
Explore Offer in Compromise
We take the pressure off your shoulders by handling the IRS for you. You’ve worked your whole life—don’t let tax debt steal your retirement peace.
Let us handle the IRS—so you don’t have to.
Frequently Asked Questions: Retired but Still Owe Taxes? Here's How Seniors Can Get Relief
Can the IRS take my Social Security if I owe taxes?
Yes, they can take up to 15% of your monthly Social Security check through the Federal Payment Levy Program. But if you qualify for hardship status, this can be stopped.
What is Currently Not Collectible (CNC) status?
CNC means the IRS agrees not to collect from you due to your financial situation. If you can’t afford to pay without risking your health or well-being, you might qualify.
How does an Installment Agreement work for seniors?
It lets you pay back your tax debt in monthly payments that fit your budget. Even on retirement income, many seniors qualify for low or zero-interest plans.
Can I get rid of IRS penalties as a retired taxpayer?
Yes. If you can show reasonable cause—like illness, loss of a spouse, or financial hardship—you may qualify for Penalty Abatement.
What is an Offer in Compromise, and do seniors qualify?
An Offer in Compromise (OIC) allows you to settle your debt for less than the full amount. Retirees with limited income and few assets often qualify.
Are tax scams common among seniors?
Yes. Scammers often target seniors with fake IRS calls. The real IRS will never threaten arrest or demand gift cards. If you’re unsure, contact a tax professional before acting.
