IRS issues warning to thousands of Iowa residents over social security debt collection. (Des Moines, Iowa — January 15, 2025) The Internal Revenue Service (IRS) announced a new debt collection initiative targeting approximately 12,000 Iowa residents who have outstanding Social Security tax liabilities. According to a statement released at 8:00 a.m. CST, the IRS identified these individuals through a data-matching program with the Social Security Administration, revealing unpaid taxes dating back to 2018. The agency will begin sending certified demand letters this week, requiring repayment of an average debt of $4,300 per person. Officials stated that failure to respond within 30 days will result in automatic garnishment of future Social Security benefits and federal tax refunds. This enforcement action, which affects both retirees and disabled beneficiaries, stems from underreported self-employment income and errors in quarterly filings. The Iowa Department of Revenue has been notified to coordinate with the IRS on potential state-level penalties. A spokesperson for the IRS emphasized that affected residents should file an appeal or payment plan to avoid immediate levy actions. The initiative is part of a broader federal effort to recover an estimated $1.5 billion in Social Security tax debts nationwide.