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How can I fight VA State Tax Dept?

Date: Fri, 02/25/2011 - 12:42
Submitted by jajones on Fri, 02/25/2011 - 12:42
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The state of VA sent a letter over a month ago that they were going to garnish my wages due to repayment of back taxes from 2006. I contacted them, made payment arrangements. My first payment was due 2/18/11 of $100. Last Friday, the 18th, I was expecting my IRS refund and found out earlier this week that it was intercepted. That amount was $550. The state says I owe them about $1700 total. I was able to obtain 2 of my W-2 forms and in that year, I was also collecting unemployment. The only thing missing is one W-2 form because the company is no longer doing business in VA and I am unable to locate any information on the company. I wrote a letter explaining this to VA. I also obtained a transcript from IRS showing all my employers and filed that with the 760 form. This was mailed to them last Saturday. I was told over the phone they received it but it may take 6 -8 weeks for them to get around to it because of the filings for 2010. I was also told that interest would still accrue. I told them that is not fair due to the fact that they intercepted my tax refund and why should I be penalized for this.

Can you give me any suggestions, such as filing a complaint, etc. Everyone I have spoken to seems incompetent. I also printed the transcript because the conversation I had with the individual filing dept and collections dept was interactive. Should I copy this information and send to them as well? They also would not reduce my payment arrangement which $100 per month. What else can I do? I thought about taking out a loan to pay them off but I am attempting to buy a home soon and don't want any more debt.

Thanks for your help, appreciate whatever you can give to me.


At this point I don't think there's anything you can do. They will credit you for the intercept and adjust any interest. You will still be on the hook for the monthly payments. What you CAN do for this year is file a new W-4 so that you do not have a refund coming next year that they can take. However, due to the interest they charge, it's best to get this cleared up as soon as possible.

The other way (if a joint return was filed) would be for your spouse to file an "injured party" form as part of the refund was hers. You'd have to check IRS website for that scenario.

I pay the IRS monthly and last year they intercepted my meager refund. This tax bill has not shown up on my credit report, so that's a plus.

The monthly payments, as long as you make them every month, will stop any garnishment/levy which would be a negative on your credit report.

Sorry I couldn't give you better news.


Submitted by aubrey on Fri, 02/25/2011 - 12:59

aubrey

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Aubrey is correct. Once you make a payment arrangement they can still take your federal refund. So if you made the $100 payment and they credit the $550 from the IRS you've paid $650 toward the $1700. VA should send you a payment reminder each month showing the remaining balance including any interest. If you break these arrangements they can garnish your wages or your bank accounts. Stick to the agreement!


Submitted by J L B on Thu, 04/07/2011 - 08:05

J L B

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