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Overpaid while in military collecting 7 years later

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H

hitsnorth

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What is the name of your state?What is the name of your state?New York

I resided in Virginia when I was a member of the military.
I was honorably discharged from the military in January 1994. I was never told I was overpaid or that I owed any money at that time.
August 3, 2003 I receive a letter from the Department of the treasury Financial management service stating that they withheld $2208 from my tax return. I later received a letter November 14 2001 stating they withheld another $500 from my tax return. Both were paid to Defense Financial And Accounting Service.

I called the IRS and they told me they could not answer any of my questions that it was a Non-Tax Federal Debt and I need to contact DFAS. Which I did and they told me at that time I was overpaid while I was in the Navy and that is why they took money out of my tax refund.

September 19, 2001 I sent DFAS a letter and stated that I knew nothing about this debt and asked why they were taking money from me.

Oct 18, 2001 They replied with an 18 page document outlining that I was overpaid $4463.79. That I was not entitle the Basic allowance for Quarters or Variable Housing Allowance. But I was entitle to Basic Allowance for quarters - Differential and that was applied to my account. They enclosed leave and earning statements with a lot of hand written numbers and calculations. And stated that if I felt any of the information with completely or partially in error I needed to provide official documentation that supports my claim to them for further evaluation.

Since they didnt tell me about this debt for over 7 years wouldnt the statue of limitations protect me even if I was overpaid? I dont know what kind of official documentation I can provide to prove I wasnt overpaid I am not even sure why I would be responsable for being overpaid by them? Do I have any recourse to get this money returned to me?
 



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