State IRS levied my bank account without notice.

[Jaegur]

What is the name of your state (only U.S. law)? Louisiana (Though I live in Texas.)




So, back in 2006-2007 I believe, I didn't pay about a hundred dollars in state taxes. I was young and dumb, recently divorced, and pretty dumb.


Fast forward to about 5 years ago, and I got something in the mail while I lived in Chicago about owing LA IRS to the tune of a couple thousand dollars. I couldn't afford it, and it came from a collection agency, so in my continuing stupidity I said, "Eh, it'll be gone in like seven years, screw it."

Now, I'm re-married, responsible, and not quite as dumb. (I have a house, decent credit, yadda yadda.) However, in this journey I forgot all about the Louisiana thing.

Then, Friday evening my wife calls me and informs me that out bank/savings account, the one in both our names, has been frozen and levied. There's only about 600 bucks in there (luckily my wife had just paid off some credit cards with her scholarship money from school.) But, what we had in there was for food/grocery/bills for the next two weeks.

I tried calling the IRS, but of course this was done after hours, on a Friday, and they closed at 4:20 in the afternoon. (heh.) After doing some research, we learned that what they did was illegal, in that we NEVER received a single notice of intent, and from what I understand, we should have received at least two within the last two months. We've lived at this address for a year, and if they can grab my bank account, I'm pretty certain they have my home address.

I plan on calling them in an hour when they open, but thought maybe I could grab some helpful advice before hand. If anyone's awake.

 

[single317dad]

What is the name of your state (only U.S. law)? Louisiana (Though I live in Texas.)




So, back in 2006-2007 I believe, I didn't pay about a hundred dollars in state taxes. I was young and dumb, recently divorced, and pretty dumb.


Fast forward to about 5 years ago, and I got something in the mail while I lived in Chicago about owing LA IRS to the tune of a couple thousand dollars. I couldn't afford it, and it came from a collection agency, so in my continuing stupidity I said, "Eh, it'll be gone in like seven years, screw it."

Now, I'm re-married, responsible, and not quite as dumb. (I have a house, decent credit, yadda yadda.) However, in this journey I forgot all about the Louisiana thing.

Then, Friday evening my wife calls me and informs me that out bank/savings account, the one in both our names, has been frozen and levied. There's only about 600 bucks in there (luckily my wife had just paid off some credit cards with her scholarship money from school.) But, what we had in there was for food/grocery/bills for the next two weeks.

I tried calling the IRS, but of course this was done after hours, on a Friday, and they closed at 4:20 in the afternoon. (heh.) After doing some research, we learned that what they did was illegal, in that we NEVER received a single notice of intent, and from what I understand, we should have received at least two within the last two months. We've lived at this address for a year, and if they can grab my bank account, I'm pretty certain they have my home address.

I plan on calling them in an hour when they open, but thought maybe I could grab some helpful advice before hand. If anyone's awake.

You're going to need to find out where a judgment was entered against you (probably in Louisiana). A case of tax collections across state lines is not simple and could be quite a task to unravel. With interest, penalties, and fees, this could cost you a lot of money, and your recourse is limited against the government revenue agency.

http://revenue.louisiana.gov/Faq/QuestionsAndAnswers/1

http://www.statutes.legis.state.tx.us/Docs/CP/htm/CP.63.htm

 

[Jaegur]

So I talked to a lady this morning, and apparently they don't need to contact me with an intent to levy, just to offset. And, they've been sending mail to an address I had ten years ago. She said they sent a certified letter to that PO box in 2014 with an intent to offset.

Right now I'm just going to talk to a lawyer, see if there's anything I can do.

 

[adjusterjack]

So I talked to a lady this morning, and apparently they don't need to contact me with an intent to levy,

That's how bank levies work. They don't tell you in advance so you don't have the chance to clean out the bank account before they get the money.

And, they've been sending mail to an address I had ten years ago. She said they sent a certified letter to that PO box in 2014 with an intent to offset.

Doesn't matter.

Right now I'm just going to talk to a lawyer, see if there's anything I can do.

There probably isn't anything you can do.

I don't think that lawsuits and judgments are required for tax levies.

If you can afford $300 per hour for a lawyer you might want to put that money toward paying the bill. If you have the cash you can try to negotiate a discounted lump sum settlement.

 

[davew128]

There is no state IRS.

Calling the IRS about a LA tax issue is rather silly.

 

[davew128]

If you have the cash you can try to negotiate a discounted lump sum settlement.

You don't do tax for a living apparently.

 

[single317dad]

I don't think that lawsuits and judgments are required for tax levies.

In my area, there's a judgment, but the "case" is more of a rubber-stamp than anything else, as none of the debtors are aware of the hearing and there's never any opposition. The records are publicly searchable, but not in the same system as criminal and civil records. Property tax cases brought by the county are similar, but are in those same recordsets.

OP's own applicable laws and the local practice may (and probably does) vary.

 

[FlyingRon]

It's the Department of Revenue down there, not the IRS. But dave is right, the DOR there has OIC's but it's pretty much the same as with the IRS. They've pretty much have to write off the ability to collect the money by any reasonable (i.e., cost effective to them) means before they'll agree to one.

 

[Jaegur]

I should have mentioned that I'm not a tax professional. The point is, I called the number I was given, which was the La revenue. To me, at this point, it may as well be the IRS. Though, I think it would be easier dealing with the IRS than it is with the state.

 

[adjusterjack]

You don't do tax for a living apparently.

I don't have to do tax for a living. I know how to look things up.

Ever hear of "Offer in Compromise"? Look it up on the IRS website.

Now look at Louisiana's "Offer in Compromise" program:

http://revenue.louisiana.gov/TaxForms/20212%20(5_11)F.pdf

So, yes, it is possible to make a discounted lump sum cash settlement offer.

And I did write "try." I didn't say it would be easy or successful.

 

[davew128]

I don't have to do tax for a living. I know how to look things up.

A chimpanzee can operate a telephone if trained properly. Looking things up and understanding them are not the same.

And I did write "try." I didn't say it would be easy or successful.

In other words, you wasted everyone's time.