A group of plaintiffs are suing the Treasury Department, the Social Security Administration, and the District of Columbia, claiming the federal government is continuing to hold onto their tax refunds to pay for supposed overpayments of Social Security benefits decades ago.
After reports of the seizures emerged last year, the Social Security Administration came under pressure from lawmakers in Congress and announced a halt to the practice (see Senators Convince Social Security to Stop Seizing Tax Refunds for Decades-old Overpayments). However, the lawsuit, which was filed Wednesday, contends that the Social Security Administration is continuing to demand the money, in some cases even after the tax refunds have been returned.
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