Legal Question in Social Security Law in New Jersey

I live in New Jersey and have been favorably awarded a full SSD decision. My first monthly benefit will be deposited on 2-10-10 (Monthly over $2100.) My arrears amounts to over $60,000. I have been on a NON-DEFAULTED IRS installment agreement for taxes owed in the calendar year I became disabled. The amount owed to IRS was significant over $24,000; the amount due was from over $40,000 in 1099s for that tax year and the difference being due from some 401k liquidation (needed until my private Met Life policy paid my benefit.)

However, the installment balance is reduced to around $12,000, and as I previously stated, I have never defaulted. Will the my arrears in excess of $60,000 be garnished for the amount owed on the faithfully paid iRS installment agreement. This would be a hardship because my Met Life policy reads that if SSD is awarded, they are entitled to be paid back.......w/o paying back the full amount the will withhold their pay differential (combined with SSD) until the are fully repaid... need the differential from Met life and SSD to live. Even so these 2 sums are only 40% of my predisabled earnings of $100,00/year. Please help advise.


Asked on 1/31/10, 8:07 am

1 Answer from Attorneys
Randall Selagy F. Randall Selagy, P.C.

Past due benefits are subject to IRS liens. The Social Security Admin. must comply. You need a tax attorney or other tax specialist to sort this out, no a disability lawyer.

If you have problems with the long-term disability insurance company, you need to consult with an attorney skilled in ERISA and other employee benefits. Some but not many Social Security lawyers could help. So re-post your questions under those heading or better call you county bar association for a referral in your area.

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Answered on 2/05/10, 10:59 am


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