State took $7000

[Anonymous]

I'm sick to my stomach. We've been working hard the last two weeks repairing credit and paid off all debts except my car.  Right when you think you're ahead of the game...bam!

We were expecting $7800 IRS refund this yr. Today we got a notice saying our state reduced it our IRS return to $800 because we owed them $7000 and that they've been trying to contact us since last year. That's not true! We had a state tax lien from last year for $1119 and we were on a pymt plan with them. We paid as agreed and then last week we paid the amount in full and our account was cleared and withdrawn. This year we owed $8 to them and just dropped it in the mail.

We received absolutely NO phone calls or letters from the state. Our CPA had no records that we owed this debt. We were planning to use that money towards a down on a van because our transmission is misfiring.  know how my Monday schedule looks. Ugh!

[Anonymous]

I'm so sorry to see this! Even worse that it happened on the weekend so you have to wait until Monday for more answers. Hope you can get it resolved soon!

[Anonymous]

Oh gosh I feel sick for you! We went through something similar, twice the last 5 years. The first time was my SO's refund of ~7k that was intercepted for student loans. We had *just* had our second baby and really needed that money at the time. No notice either. Actually both times this happened we received notice AFTER the interception. The second time it happened, my refund was due to be ~7k(again) and due to my forgotten student loans with different lenders they left me with 3k. This was about the time that something clicked with me and I realized I should figure out what kinda credit trouble I'd gotten myself into. It's devastating, especially when you have no warning and really need the money.

In your case, not to get your hopes up, but it does sound like it's possible it's a mistake. It doesn't seem to add up. For 7k it's worth it to do everything you can to make sure it wasn't a mistake.

[RobertEG]

Your state code or regs will provide some appeal process for contesting an assessment.

I would first call the state revenue branch that did the levy and ask for an informal review.  It might be a simple admin error.

If they affirm that their records show a proper levy, then I would file an appeal under whatever process is authorized in your state.

[Anonymous]

Keep us updated.

[Anonymous]

To check and see if your tax refund might be offset, you can call the Buereau of Fiscal Services .   Here is a link for more info :https://www.irs.gov/taxtopics/tc203.html

[medicgrrl]

It may not be for last tax year, may be that they're just now looking at your prior years due to your current tax lien. I would call whoever is working with you on your current lien and get additional information.

[Anonymous]

The states are typically brutal compared to the feds....been there done that with both! Follow the leads you got here and keep us posted.

[Anonymous]

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@Anonymous wrote:
Oh gosh I feel sick for you! We went through something similar, twice the last 5 years. The first time was my SO's refund of ~7k that was intercepted for student loans. We had *just* had our second baby and really needed that money at the time. No notice either. Actually both times this happened we received notice AFTER the interception. The second time it happened, my refund was due to be ~7k(again) and due to my forgotten student loans with different lenders they left me with 3k. This was about the time that something clicked with me and I realized I should figure out what kinda credit trouble I'd gotten myself into. It's devastating, especially when you have no warning and really need the money.

In your case, not to get your hopes up, but it does sound like it's possible it's a mistake. It doesn't seem to add up. For 7k it's worth it to do everything you can to make sure it wasn't a mistake.

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Ouch! Twice! That's terrible. So sorry to hear that! My student loans were paid off last year so I know it's not that. I haven't worked for two years now and my spouse didn't make that much the last 5 yrs. we have a cpa who does our taxes and he's baffled. We're taking the letter we received to him and he'll verify things for us. Fingers crossed!

[Anonymous]

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@medicgrrl wrote:
It may not be for last tax year, may be that they're just now looking at your prior years due to your current tax lien. I would call whoever is working with you on your current lien and get additional information.

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Good idea to call the gal that took our full pymt. We can never get through to the state when we call, it's crazy! They have an answering service that just says they're busy and hangs up. I'll keep y'all updated.