The Tax Man Cometh

An elderly woman in Austin, Texas, who asked not to be named, said her $3,000 debt to the IRS grew to around $60,000 in taxes and penalties over 16 years despite the fact that she paid off the initial debt within six months.

The 61-year-old is disabled and suffers from multiple health problems. The IRS now takes $133 each month from her Social Security disability check.

The practice is part of the agency's Federal Payment Levy Program, which allows up to 15 percent of any federal payments a delinquent taxpayer receives to go directly to the IRS until their overdue taxes are paid in full.