Report: $1 Billion in Social Security Benefits Paid to People Without SSN

Posted: Feb 24, 2017 9:00 AM

Do you ever wonder what happens to your social security deduction after it is removed from your check each month?

According to a new finding  by the Washington Free Beacon, the Social Security Administration paid $1 billion in benefits to individuals who did not have a Social Security Number.  In an audit released Friday, thousands of payments were being made to people who had no SSN on file. 

However, the IRS defended their position, saying that someone without a SSN is still able to receive benefits.

“Specific to this audit, the Act permits us to appoint, in certain circumstances, an undocumented alien, or applicant who resides outside the United States without a Social Security number (SSN) to serve as payee,” the agency said. “Specifically, the Act states we should verify a person’s SSN (or employer identification number) in our investigation of the payee applicant. However, the Act does not state that the applicant must have an SSN to serve as a payee.”

The “absence of an SSN is not a criterion preventing an individual from serving as payee,” the agency added.