Can a collection agency garnish my tax return?

Can a creditor take your federal or state income tax refund to pay a judgment?





Tax Refund Issue

If the judgment is for state or federal taxes then any refund is subject to seizure by the agency holding the judgment.

If it is a creditor judgment, a tax refund would only be subject to attachment if it were placed in a bank account that was being levied by the judgment creditor.


I would consult with a tax attorney.

taken from an irs website

were you actually served papers back then? If so, did you answer them, or did you only send the CA a letter asking for validation of the debt? If they did serve you a summons, and you never answered it with the court, then they have a default judgment against you. At that point, they squeaked by because they didnt have to submit proof to you when you didnt answer the complaint.

If you were not ever served, and you are positive of this, then you need to check with the court clerk's office in that county. you need to do this to make sure that there actually was a judgment against you. CA's have a habit often of saying this to scare people into paying. It is illegal to do so. If there was a judgment against you but you were never served, then you can try to get the judgment vacated because of improper service. But at this point, they cannot touch your tax return, and regardless of if there is a judgment or not, they cannot use deceptive statements in an attempt to collect a debt. They are prohibited by the FDCPA--federal law--from threatening to take any action against you that they cannot legally take, and that they arent actually going to take.

We live in South Dakota. Have been dealing with a collection agency here for a year now. Have been making small payments towards our account. Was served papers for a tax disbursement summons. Yeasterday this collection agency cleaned out my bank account. Leaving me with nothing! Wasn't the bank supposed to let me know about this before it was garnished? I just don't think that this was legal. Any advie is very much appreciated.

Did they sue you?

Actually I was trying to determine if a judgment had been issued and if he had the opportunity to represent him/herself in court as due process dictates.

Looks like our resident troll's back......

oops, didn't see who I was responding to. I would have ignored him otherwise.

Ugh, me am troll. Pay your bills or you no get cross my bridge. Ugh.

Me no care bout FDCPRLA, umm, what you call troll leash law? Me troll cowboy, me am smart, you puny debtor am lunch for me troll. Now that me say me is better me go back under bridge until next post.

UGH!

[directed to JCEMT...]

I guess no nonsense troll hasn't responded. What an idiot. It's like he actually thinks people here give a crap about what he has to say. Maybe if he had something thats not insulting like actually making a point then someone might, *might* respond, but he's made such a ass out of himself I doubt people will now.

I just received a letter stating that judgment was past against me. I didn't receive a summons myself, my mother received at an address that I have not lived at for over four years. We are not on very good speaking terms and by the time I received the summons, it was to late to take off of work and make it to court. I work part time and support my 7 month old daughter. I am the only one keeping clothes on her back and food in her mouth. I cannot afford to have garnishment passed. Dont they have to see if you can provide for youself and family? I mean, the only reason I stopped paying on the car was due to the fact the vin number didn't match the car on the paper work. And I had never seen a title to the car. I asked the bank to see it and they said I was nuts and that I had the title when it states in the paper work they held the title until paid in full. Also, I thought the banks had to sell a car when they took them? They never sold the car and are suing me for the full amount. I dont know what to do?

Guest, you should contact the clerk of the court and notify them that you were never served properly. They will have to vacate the judgement against you.