Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything that is not clear.
Most states have reciprocity agreements; have they actually done it?
not yet, the pricate collection agency just contacted me via phone
Im with the understanding that NC does not allow collection agencys to garnish wages or bank accounts
My concern is this is a private collection agency and I was not even aware that we had a tax liability in VA from 6 years ago
I believe that they have to bring an action in a local court in North Carolina before that can happen.
we have not lived in VA for that last 6 years
There is generally a 6 year statute of limitations unless they have a court judgment
Yes, I was under that impression as well. We had a home forclosed on and the bank brought us to court here in NC. SO would I be best to wait for a summons?
Do you know the actual status in Virginia
Oh, wait there's a court action in NC?
I would guess that I prob do have a liability. The IRS audited us for 2007 and we have been on a payment plan since then
not from this liability, that was from CHASE JP MORGAN for a home laon in 2007
this is for state taxes, or thats what the private collection agency has told me
CHASE won a judgement against me here in NC but that was the only thing. Not the State of VA
Well, one thing I know is if you don't show up in court you can lose by default; sometimes all it takes is a motion to dismiss based on the statute of limitations;
Ahh, that sounds comforting. SO would it be in my best interest to wait for a summons?
You basically just ask the Court (judge) to dismiss the case because the collection attempt is too old; you have to be careful that you don't do anything to acknowledge the debt or you can start the statute of limitations running again;
Even making a small payment can do that;
What happened with Chase's judgement?
They can enforce that against your bank accounts; if they find them;
The CHASE just won a judgement against me that will reside on our credit report until we pay them back is what I was told by counsel
that was back in 07 and nothing has come of it since
All they need is the sheriff to serve it; yeah, they may have given up on you; was it a lot of money?
Yes, it was 55k
I was served by a sheriff and went to court, again this was back in 07
Since when did a State hire a provate collection agency to collect tax debt?
that was just for the action; after a judgment they sheriff can start collection efforts;
do you own a home in NC?
oh, well that hasnt happened and this community is so small we go to church with the deputies and sheriff. we would have heard something by now,
The states are all doing it now;
ie. hiring a collection agency
I am going to take your knowledge here and wait until I get a summons from VA before I acknowledge that I may have a liability. would that be the best thing to do? I really do not have money to pay this right now anyway
If you own a home, then if that judgement hadn't expired (at that amount it could be a 20 yr statute), if you went to sell or refinance your mortgage, the judgment would have to be satisfied.
Right, I understand.
right. I do not own a home right now.My biggest concern here is the State of Virginia being able to levy my bank account or garnish my wages before they send me a summons
Just like Chase, they have to chase you to your own locality
well thank you for the great advise/knowledge. I appreciate you being here to answer my questions. I will rate an excellent for you. have a great day!
See tax authorities are different, like the IRS can get you anywhere without going to court