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Question: Can irs take your taxes without no notification if you owe student loans?

(Posted by: on 2012-01-26 20:45:01)

My aunt filed taxes and irs took all of her cash because she owed money from student loans. can they do that? is there a way she can fight this or is this a loss cause?

Posted by: scotgirl60 on 2012-01-26, 20:46:03

Yes, they can. Yes, it would be a lost cause to fight it.

Posted by: Andy L. on 2012-01-26, 20:48:32

Lucky they don't take more away. It is totally legal and there is no one to hear any argument about it. When you owe the government money, they get first dibs on everything you own, plus can garnish wages and any other checks.

Posted by: s and d e on 2012-01-26, 20:50:15

Yes they can and there is nothing she can do about it.

Posted by: Julie Brooks on 2012-01-26, 21:01:06

Yes they can! If she is in default, then they sure can. It is explained on the promissory note that she signed.

Posted by: Pat on 2012-01-26, 21:18:45

She WAS notified. It's all in the loan papers. You know, those things she was supposed to read BEFORE SHE SIGNED THEM.

Posted by: Kyle on 2012-01-26, 21:30:47

Sure she can fight it. She can provide proof that she paid her student loans. If she can't do this, then the IRS is absolutely entitled to take her tax refund. And she did receive notice - when she made the decision to default on her student loans.

Posted by: Gus on 2012-01-26, 23:11:56

The IRS can take your money if the debt is reported to a federal database. This is usually federal tax owed from previous years, state tax owed from previous years, and federal student loans. If you ever get a refund the IRS will take your refund to pay your debt. You will not be able to get this money back. At least her debt is getting paid. Maybe next year she will get a refund.