Illegal direct deposit of income tax refunds when separated.

[frabog]

What is the name of your state? North Carolina

A friend of mine and her husband separated in April. He had a CPA friend of his electronically file joint tax returns for them after they separated and without her approval or knowledge had the refunds direct deposited into his personal bank account. She never even saw the final returns before filing. He was supposed to split the refunds with her and did not tell her they were deposited into his account. He then refused to give her half when she learned of the deposits by calling the IRS and NCDOR. She took him to Small Claims Court which is what the IRS told her to do, and her husband told the judge she was just trying to get more money out of him. He told the judge they owed taxes and he kept the money to pay taxes. The taxes he was referring to were actually for an IRA he was either planning to or had already cashed in for 2005 which he had withheld information on during their separation agreement. The judge ruled in his favor. Is this legal? What recourse does she have? It really makes you wonder about the legal system here.

 

[BL]

What did the Court's Papers say about Appeals .

Also , wasn't her signature required on the Joint Return Application .

Seems like there Could be fraud .

Ask the DA's Office , or Attorney General's office to complain about the One that Filled out the Forms and Filed it .

 

[JETX]

Is this legal?

Is what legal??
The ruling by the court, yes.
The lying by the husband, no, but there is nothing that can be done about that.

What recourse does she have?

If it is still within the time to appeal the small claims judgment, she can do that. If the time to appeal has passed, so has her recourse.

It really makes you wonder about the legal system here.

Why?? The 'legal system' did exactly what it is supposed to do. It allowed both sides to present their versions and ruled accordingly. The fact that the husband lied and she was NOT prepared for his conduct is HER fault, not that of the 'legal system'.

 

[BL]

Yes, I agree you could appeal .

If you can prove the taxes were forged with your signature , He wouldn't walk into Court with " Clean Hands " , and you might win .

 

[frabog]

Illegal deposit

She is appealing the case. She did not sign the return, nor did she sign a tax declaration for e-filing. Apparently, her husband had the taxes electronically filed last year and had a PIN number assigned for her (which she was not aware of) before so he already had the information. I think she could go after the tax preparer as well since she never signed the form allowing the e-filing in the first place. What a mess.

 

[BL]

And did She subpoena those Records ?

 

[frabog]

Illegal deposit

She is getting a lawyer to handle the appeal. I assume the lawyer will subpoena the records (I would hope). She has learned a lot from all of this.