Dec 24, 2016
Dec 23, 2016
I.R.S. Drops Coal In The Stockings Of Poor Disabled People
The Treasury Department refuse[d] to stop forcing permanently disabled people to pay taxes on student loans that have been canceled, leaving a vulnerable population susceptible to thousands of dollars in charges, according to Senate staffers.
Anyone with a severe disability is eligible to have the government discharge their federal student loans. The process is widely considered difficult to navigate, so the Obama administration allows people to use their Social Security designation to apply, yet few take advantage. As a result, the Education Department began identifying borrowers too disabled to repay their federal loans and guiding them through debt cancellation. The trouble is, every dollar forgiven by the government is considered taxable income.
Congressional lawmakers have urged Treasury to use its administrative authority to fix the problem, but the department is not taking action.
At a meeting Wednesday, Treasury officials informed Senate staffers that it will not issue guidance addressing the tax penalty for disabled borrowers, according to people in attendance who were not authorized to speak publicly. They said Treasury officials conceded that roughly two thirds of affected borrowers are insolvent, a designation that would allow Treasury to waive any taxes connected to discharged loans. Claiming insolvency, however, involves complex paperwork. ...
Dec 22, 2016
Dec 21, 2016
Proposed Final Regs Fail To Clear OMB In Time To Come Into Effect Before Change Of Administration
The Office of Management and Budget (OMB) has not yet acted on two packets of proposed final regulations submitted by the Social Security Administration. One packet was on Revisions to Rules of Conduct and Standards of Responsibility for Appointed Representatives
and the other on Revisions to Rules Regarding the Evaluation of Medical Evidence. Since the Administrative Procedure Act requires a 30 day waiting period before new regulations take effect it's now too late for these proposed regulations to become final before President Obama leaves office. This doesn't mean that these proposed final regulations are dead. The incoming administration will almost certainly put any proposed final regulations pending at OMB or which have been approved but not come into effect through a new review before they can become final. The review of these regulations may not even start until there's a new Commissioner of Social Security. The regulations could be modified or withdrawn as a result of the review.
Student Loan Offset Problems
The Government Accountability Office (GAO) has issued a 90 page report on the offsets applied to Social Security benefits due to unpaid student loans. Even though the GAO seems to me to try to downplay the problem, it's still clear that it's real and serious. Many people are being thrown into poverty by the offsets as shown by the chart below, even though many of the student loans went to pay for nearly worthless online education.
 |
| Click on chart to view full size |
Dec 20, 2016
Subscribe to:
Posts (Atom)