Can my property be taken without due process?

[gkisystems]

What is the name of your state (only U.S. law)? Wisconsin.

I purchased a vehicle for below the average wholesale value at $7,500. The reason I got the car so cheap was because:

a. The sellers were under great financial stress and the car was about to be repossessed by the bank.
b. The car's title showed that it was previously titled as a rental car (automatically lowers the market value)
c. The car had some pre-existing damage from a collision.

The Wisconsin Department of Revenue assumed I was lying about the purchase price to reduce my sales tax liability on the purchase and sent me a bill assuming the purchase price was $12,800. They assessed additional taxes (based on the higher purchase price they calculated) as well as interest and penalties.

In response, I sent them a copy of my bill of sale showing the purchase price of $7,500, but I do not believe they received it. I will send them another copy, but they claim it is too late for them to review any additional information and the matter is now closed. They intercepted my tax refund check and are now garnishing my wages.

My concern is that the State is taking my property without due process. If they refuse to correct the error on their end, shouldn't they be required to get a judgment against me in a court of law? Can't I at least present my case in front of a judge or jury before they just take my property by force? If you could quote any case law, statutes, or examples, it would be much appreciated. I would like to cite these in my letter back to the department - and may also decide to write my state representatives.

Unfortunately, the amount is too small to hire an attorney but too large to just let it go.

 

[justalayman]

and you didn't provide the sales receipt when you applied for the title transfer why?

 

[gkisystems]

and you didn't provide the sales receipt when you applied for the title transfer why?

The Wisconsin Department of Motor Vehicles does not ask for or collect sales receipts for vehicles. The consumer is responsible for calculating their own tax. The form is here:

http://www.dot.wisconsin.gov/drivers/forms/mv1.pdf

I calculated the tax correctly based on my actual purchase price.

 

[justalayman]

In response, I sent them a copy of my bill of sale showing the purchase price of $7,500, but I do not believe they received it. I will send them another copy, but they claim it is too late for them to review any additional information and the matter is now closed. They intercepted my tax refund check and are now garnishing my wages.

Ok, gotcha.


How long ago did you buy the car? When did they first send you notice you owed money (per their claim)? How soon after did you send a copy of the bill of sale? Did you take any other actions (letters, phone calls, protesting outside the statehouse with a sign)?

 

[gkisystems]

Ok, gotcha.


How long ago did you buy the car? When did they first send you notice you owed money (per their claim)? How soon after did you send a copy of the bill of sale? Did you take any other actions (letters, phone calls, protesting outside the statehouse with a sign)?

I purchased the car in November 2010 and it sat in the garage for a long time, unregistered. Apparently you are supposed to register the car right away after buying it, but I eventually registered the car sometime around May or June 2011. They supposedly sent me a letter informing me of an audit on July 18, 2011, but I never got the letter and had to ask them to resend it. I found out about their audit in September 2011 and responded. They requested me to send a bill of sale in a letter dated November 15, 2011 and I sent the bill of sale via email on November 16, 2011. I do not think they ever got my email because when I spoke to them on the phone this week, they said they had no record of it.

Around January 2012 or so, they sent some more communication saying that their audit is closed and I can appeal to them (the same department that already decided against me), but only if I pay a fee to do so. I thought about it, but never took any action because:

a. Why should I have to pay a fee to appeal? The burden of proof should be on them, not me.
b. I misplaced the paperwork they sent that I needed to fill out to appeal - yeah my fault, I know.
c. Not sure an appeal to the same group would do me any good.

Either way, my thought is that they have the burden of proof to show I owe the money and they should be responsible for the court costs to take that action. I should also be able to have my side heard by a jury of my peers, not their own people.

 

[Proserpina]

You're talking about tax law and the government.

Once they've informed you of an intent to levy, that is all they need to do - they are not bound like regular creditors to take further action before they can start grabbing your assets.

You were informed in January of the outcome, but you took no action. It's possible that you can't even appeal at this point.

 

[justalayman]

Around January 2012 or so, they sent some more communication saying that their audit is closed and I can appeal to them (the same department that already decided against me), but only if I pay a fee to do so. I thought about it, but never took any action because:

so you waited another 6 months and then figured, Oh, what the heck, I might as well look into it now.

Seriously, your continued refusal to act when you have the opportunity is the biggest problem here.

If you still have the option to appeal, if you have proof of your claim (and an affidavit from the seller would be a really good idea if possible) and it doesn't cost more than you might gain, I would consider it. Other than that, it's time to just pay the tax man.

 

[gkisystems]

so you waited another 6 months and then figured, Oh, what the heck, I might as well look into it now.

Seriously, your continued refusal to act when you have the opportunity is the biggest problem here.

If you still have the option to appeal, if you have proof of your claim (and an affidavit from the seller would be a really good idea if possible) and it doesn't cost more than you might gain, I would consider it. Other than that, it's time to just pay the tax man.

Yes, I acknowledge that I could have been more diligent on this. However, isn't there some sort of case law that states the burden is on the state to prove I owe money? It doesn't seem fair that they can just steal my property without giving me a trial. I shouldn't have to pay for a trial.

 

[justalayman]

Yes, I acknowledge that I could have been more diligent on this. However, isn't there some sort of case law that states the burden is on the state to prove I owe money? It doesn't seem fair that they can just steal my property without giving me a trial. I shouldn't have to pay for a trial.

there are also rules in law that if you do not take timely action to defend your rights, you lose the right. You were given several opportunities and now you are faced with the results of procrastination. Sorry guy but I would expect any argument to fight this, at least due to the reasons you are presenting, would cost you way more than the extra tax. If the appeal is still possible and it would benefit you financially, I would go that route. Other than that, fuhgedaboutit.