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flo23
Posts: 88
Registered: ‎07-06-2008
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Need some advice.. tax refund seized

[ Edited ]

Hello all. I'll make it short,my mom had a credi card open with capital one,but i used it during college and fell behind on payments, fast forward 5 years later i got a call from my mom today saying she just got something in the mail from treasury that her tax refund was seized? is this legal? im pissed cause my poor mom got screwed cause of me and i want to help.please give me some advice. oh btw she never got served with papers

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rbh
Posts: 356
Registered: ‎06-25-2009
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Re: Need some advice.. tax refund seized

If the card was charged-off, then the amount that is owed would have been considered income.  The CC companies report this info to the IRS and you are responsible for paying taxes on the amount.  If the taxes were never paid, then they will apply any tax refund you get to the balance you owe, until it is paid off.  She wouldn't have been "served with papers" as it isn't a legal proceeding through a court.  But in a previous year, she should have received a letter from the IRS stating how much is owed, and the notice she just received from the IRS should state the balane that is remaining, if any.

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flo23
Posts: 88
Registered: ‎07-06-2008
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Re: Need some advice.. tax refund seized

She never got nothing from IRS saying she owed anything..in fact she was due to recieved 1200 bucks this year.. how is that possible? thanks

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rbh
Posts: 356
Registered: ‎06-25-2009
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Re: Need some advice.. tax refund seized

 


flo23 wrote:

She never got nothing from IRS saying she owed anything..in fact she was due to recieved 1200 bucks this year.. how is that possible? thanks


It really happens all the time.  Happened to my ex-roommate this year too.  He ignored the letter the IRS sent him last year.  Are you 100% positive she didn't receive anything and just not act on it?

 

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andre181
Posts: 626
Registered: ‎07-29-2010
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Re: Need some advice.. tax refund seized

This might seem like a stupid question but did the letter say the refund was seized specifically because of this credit card account?

 

Who was the letter from?

 

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flo23
Posts: 88
Registered: ‎07-06-2008
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Re: Need some advice.. tax refund seized

i asked her she said she does  not have any paper work but she said she probably got something long time ago, she is on social security and i feel like crap right now cause i created this mess in my college days, the card was only 500 limit and they took 1200 so far she said.

Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008
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Re: Need some advice.. tax refund seized

Always call this number to find out if anything is owed to the IRS.  It's the offest number that let's you know if your refund will be taken. 

(800) 304-3107.  It's an automatic system. 

Regular Contributor
edens04
Posts: 122
Registered: ‎02-09-2009
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Re: Need some advice.. tax refund seized

I do taxes, and if the IRS took her return, they had a right too.  And unfortunately it is legal.  But the IRS would never take it without any prior ackknowledgement about said debt.  

Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008
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Re: Need some advice.. tax refund seized

 


edens04 wrote:

I do taxes, and if the IRS took her return, they had a right too.  And unfortunately it is legal.  But the IRS would never take it without any prior ackknowledgement about said debt.  


Right!! They always send a notice to the last address that they have on file.  But if that person moved, they may never get the letter.  I could be wrong, but I don't think the USPS forwards mail coming from the IRS. 

 

Established Contributor
veracious
Posts: 684
Registered: ‎04-21-2010
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Re: Need some advice.. tax refund seized

[ Edited ]

  flo23,   Did your mom ever receive a 1099 from the  credit card company ?

 

This could be the cause behind the seizure of the refund  if  the credit card company  accepted a settlement from your mom.

 

Not sure if this applies in your particular case.

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