State took $7000

[elim]

I only know the reverse (Fed takes my state refund every year). I always get an appeals letter a few weeks after they snatch their $, showing the year, amount I owe, etc. State may send one also.

GL,  May be an error and you can get your cash back after a couple months of hard work.  

[medicgrrl]

Another thing to look at, and I don't know the laws about when money can be taken from federal refunds, but do you have any other outstanding government bills, like for an ambulance. Or have you received any public assistance money in the past, like food stamps etc. Did the IRS specifically state it was a tax debt?

[wa3more]

Not sure what recourse OP has. The fed/state governments have right of offset without due process. I have a feeling OP is out of luck.

[Anonymous]

By law, the letter you received from the state about your refund offset must contain the reason why, the alleged debt that made them want to steal your money.

What does the letter say, specifically?

[wa3more]

i just reread original post. There must be more going on here. Contact someone at the state finance department, They can't be that messed up that they missed the installment plan

[Anonymous]

Our CPA called the state today. The rep said it was taken because we owed $1119 from last year. Then she saw we were on a payment plan since last year, we paid the full amount, have a $0 balance, and it was withdrawn. We have no other state liens or any outstading debt. She said she's unsure why $7000 was withheld and she would investigate. Our CPA is working on it.

The orginal letter we received last Friday stated no reason. It states that they have been trying to contact us and we did not respond (which is a lie, because we received absolutely no contact),  the original amount of our return, the amount withheld by the state, and a phone number to call if we wanted to dispute it.

I'll keep ya'll updated.

[wa3more]

it sounds like the left hand doesn't know what the right hand is doing....good luck.

[Anonymous]

A good rule of thumb is why let Uncle Sam hold all your money all year long and then keep all of it and you have earned no interest on the loan you made to them?  Have you employer give you a new W4 to fill out and keep all your hard earned tax money all year long.  If you always get a refund then you can claim exempt for it.  Talk to your CPA about it.  Makes for a larger paycheck each week as well, and thats money you can spend now instead of 7k in a matter of a week like most of us do, lol

Just an idea.  I know it has been suggested to me before.

[Anonymous]

Update: an auto deposit for $7000 came in. No letter apologizing or explaining thier mistake. However, where's the $800? They said I was to get $7800 refunded yet they only returned $7000. I'll have my cpa call on it again. 

@pickle76 I had a baby last year and I think that's why we received more. I usually get little to nothing on returns, but with the new baby I forgot to change the withholdings. Mama brain.

[medicgrrl]

Congrats on getting the $7000 back!