topic Re: Need some advice.. tax refund seized in General Credit Topics

Need some advice.. tax refund seized

Anonymous — Tue, 08 Mar 2011 02:35:51 GMT

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

Re: Need some advice.. tax refund seized

Anonymous — Tue, 08 Mar 2011 02:42:17 GMT

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.

Re: Need some advice.. tax refund seized

Anonymous — Tue, 08 Mar 2011 02:45:00 GMT

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

Re: Need some advice.. tax refund seized

Anonymous — Tue, 08 Mar 2011 02:54:20 GMT

@Anonymous 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?

Re: Need some advice.. tax refund seized

andre181 — Tue, 08 Mar 2011 02:56:18 GMT

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?

Re: Need some advice.. tax refund seized

Anonymous — Tue, 08 Mar 2011 02:58:52 GMT

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.

Re: Need some advice.. tax refund seized

DI — Tue, 08 Mar 2011 03:18:39 GMT

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.

Re: Need some advice.. tax refund seized

Anonymous — Tue, 08 Mar 2011 03:33:57 GMT

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.

Re: Need some advice.. tax refund seized

DI — Tue, 08 Mar 2011 03:45:13 GMT

@Anonymous 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.

Re: Need some advice.. tax refund seized

veracious — Tue, 08 Mar 2011 04:42:18 GMT

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.

Re: Need some advice.. tax refund seized

MarineVietVet — Tue, 08 Mar 2011 05:30:49 GMT

@Anonymous wrote:
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

I'm sorry this has happened to your mother but in my opinion this is too serious a matter to rely on just advice from an online forum; even from one with as many knowledgeable people as we have at myFICO.

Go talk to a lawyer PRONTO! The IRS is not to be trifled with.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".