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HELP !money taken from a levy that shouldn't have been

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mina1

Junior Member
What is the name of your state? CA
I live in CA and I had a levy from the IRS and I had it modified according to my budget this was faxed and received by payroll on Aug 17. It wasn't modified that week even though it was recieved days before pay period ended. The following week another extra $100 was taken out of my paycheck in error and my employer said that it was too late to fix and that I would have to call IRS to try and get a refund. Can they do that? Anyone know please respond before I call payroll again> Thanks!!
 


pattytx

Senior Member
So, are you saying the release was received by payroll in time (based on payroll's processing deadlines) to stop the levy and they did not? Did you make a voluntary agreement?

The IRS is most likely not going to refund the money the company has already sent to them; they will notify you of any overpayment that still may exist. If you made an agreement to make payments, however, they will very likely apply the withheld funds to your balance and you'll just get the amount due paid off faster.

I'm not excusing the actions (or nonactions) of the payroll department if, in fact, they were able to act on the documents in a timely manner and they did not. I'm just saying that it all comes out of the same piggy bank.
 

mina1

Junior Member
Payroll did receive the modification to a levy 3 days in advance and still deducted the money not only for that pay period but for the next also (in error) It was almost half of my paycheck and I do undedrstand that I can ask for a refund and probably won't get it. I am just frustrated at the lack of compitence in the payroll department especially after checking prior to check being issued that everything was correct.
 

pattytx

Senior Member
I don't disagree with you. It makes me mad too, because I've been a payroll professional for (too many) years and this is the kind of thing that gives payroll folks a bad name. Just trying to be realistic, though. :(
 

Gadfly

Senior Member
This is an argument for paying your taxes on time. When you let it get to the point of a settlement with the IRS there are just too many other people with their hands in your candy jar.
 

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