Results 1 to 5 of 5
  1. #1
    Join Date
    May 2012
    Posts
    3

    Default Tax Refund Garnished Based on Two-Year-Old Order

    My question involves judgment recovery in the State of: IL

    In 6/2002 I plead guilty to wire fraud in an IL federal court and was ordered to pay a lump sum payment in the amount of 187K I of course did not have the money so it was never paid. During my probation term I may a few (less than 8) small payments. My probation term ended in 12/2007 and I was never asked for any payments, nor had I ever heard anything from the courts. In 10/2010 my current employer was sent a writ from the courts stating they had 10 days to reply to the letter and that they needed to start garnishing my wages 25%. To this day my current employer has never replied to the letter and they have never been contacted again, Although they have been withholding 25% of my paychecks. In 02/2012 the courts seized my tax return with out notice in the amount of 5k which 4k of that was from claiming my son and part of that 4k was to go to his mother who is now my wife but at the time was not. All of this happened in my young and dumb years 90's, I was 19 when I committed the fraud. it took almost 5 years for the federal courts to do anything and it has been another 10 years since the court case. I am now 35 and boy do I wish I could go back and change time!

    Questions
    1. How long can the federal courts pursue me for the 187K since I will never be able to come up with the money unless I win the lotto. It has been 10 years since the court case and 15 since the offense took place.
    2. what should my current employer do? never reply (its already been over 1.5 years)? reply in writing? give them a call?
    3. Can the courts seize any of my personal property such as vehicles? I have 2 cars one paid off and another one that I just purchased in 4/2012 via loan.
    4. Now that I'm married can they take any of my wives wages or tax returns?
    5. Are they allowed to seize all of my federal tax return even if I claimed someone else like my son on it since he has nothing to do with it or can they only seize the part that was as a result on my income?
    6. Why all of a sudden are they trying to get money now? after all these years. It is hard enough to provide for my family and they are only making it more difficult. I know I did the crime and all that but geez I was young and dumb and trust me I wish I could change all of it. I mentor the youth now in hopes that I can make a difference in someone's young life choices.

  2. #2
    Join Date
    Apr 2010
    Posts
    238

    Default Re: Tax Refund Garnished Based on Two-Year-Old Order

    Until you satisfy the court you'll be on the hook for the original amount until the day you shed this mortal coil. The only thing that might change is your lawyer negotiating a different (smaller?) settelment for you with Uncle Sugar. They can and will seize your assets any way possible making tax refunds the primary source.

  3. #3
    Join Date
    May 2012
    Posts
    3

    Default Re: Tax Refund Garnished Based on Two-Year-Old Order

    Anyone else have any thoughts?

  4. #4
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,087

    Default Re: Tax Refund Garnished Based on Two-Year-Old Order

    Under the Mandatory Victims Restitution Act of 1996 (MVRA), the federal government can garnish wages and tax refunds to recover money owed to the federal government or for unpaid restitution in criminal cases, even after the sentence is complete. See U.S. v. Lee, 659 F.3d 619 (2011). That case describes the maximum amount that can be garnished (generally, up to 25% of a debtor's 'disposable earnings' for a week; further details in the case); see also 18 U.S.C. § 3613. If you have joint accounts with your wife, or file joint tax returns, there is a potential for garnishment of the joint asset. The reason you are getting a tax refund is irrelevant to their ability to garnish the refund - it's your money, not your son's. Presumably they are trying to get the money now because they have identified you as owing money and having the ability to repay, and you didn't previously pay your restitution.

  5. #5
    Join Date
    May 2012
    Posts
    3

    Default Re: Tax Refund Garnished Based on Two-Year-Old Order

    Quote Quoting Mr. Knowitall
    View Post
    Under the Mandatory Victims Restitution Act of 1996 (MVRA), the federal government can garnish wages and tax refunds to recover money owed to the federal government or for unpaid restitution in criminal cases, even after the sentence is complete. See U.S. v. Lee, 659 F.3d 619 (2011). That case describes the maximum amount that can be garnished (generally, up to 25% of a debtor's 'disposable earnings' for a week; further details in the case); see also 18 U.S.C. § 3613. If you have joint accounts with your wife, or file joint tax returns, there is a potential for garnishment of the joint asset. The reason you are getting a tax refund is irrelevant to their ability to garnish the refund - it's your money, not your son's. Presumably they are trying to get the money now because they have identified you as owing money and having the ability to repay, and you didn't previously pay your restitution.
    Upon reading 18 U.S.C. § 3613 it states the following:

    (b) Termination of Liability.— The liability to pay a fine shall terminate the later of 20 years from the entry of judgment or 20 years after the release from imprisonment of the person fined, or upon the death of the individual fined.

    So if I am reading this correctly they only have 20 years from 2002 (date of judgement) or 20 years from 2004 (date of release from imprisonment) to collect the money?

    1. Sponsored Links
       

Similar Threads

  1. Establishment: Restraining Order Filed Based on an Event the Petitioner Was Not Present
    By sheypp in forum Restraining Orders
    Replies: 1
    Last Post: 08-27-2011, 02:26 PM
  2. Replies: 9
    Last Post: 05-24-2009, 07:45 PM
  3. Wages Garnished, State Tax Refund
    By justfold in forum Tax Law
    Replies: 1
    Last Post: 04-14-2009, 02:15 AM
  4. Replies: 3
    Last Post: 12-31-2007, 11:16 AM
  5. Debt Collectors: Debt Collector Garnished Savings Without a Court Order
    By helplessfather in forum Debts and Collections
    Replies: 2
    Last Post: 12-14-2007, 05:00 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Find A Lawyer - Free, confidential referrals.
Legal Forms - Buy easy-to-use legal forms.




Untitled Document