Wow, IRS leaves me with $336 out of $4500 net pay

[grandmasusan]

I knew that filing last week wouldn't stop my end of month paystub from being garnished but I thought I would at least get 50% of my take home pay...NOPE! The IRS took over $4k and left me with $336 for the next 2 weeks. I don't know how the IRS expects people to live a normal life.

My attorney says we can ask for a refund but I dont know how long that will take and my $4200 mortgage pmt is due on the first. I'm really stressing out...this really stinks. I hate the IRS!!!

[lrprn]

So sorry to hear about this latest mess, GMaS The IRS is relentless unless you make payment arrangements with them. In this case, if they took the money AFTER you filed, then they have violated the automatic stay and must return the money. Unfortunately the money will probably be returned to your trustee, not to you - ask your lawyer about this.

Do you have family or friends who can help out in this emergency? If you don't and won't be able to make your mortgage payment on time, contact your mortgage company. Hopefully you have one with a heart who won't use this as an excuse to request the automatic stay be lifted on your house for late payment. Sure hope there's a way out of this for you - keep us posted, ok? We're here for hand-holding as needed.

[Granny]

I knew that filing last week wouldn't stop my end of month paystub from being garnished but I thought I would at least get 50% of my take home pay...NOPE! The IRS took over $4k and left me with $336 for the next 2 weeks. I don't know how the IRS expects people to live a normal life.

My attorney says we can ask for a refund but I dont know how long that will take and my $4200 mortgage pmt is due on the first. I'm really stressing out...this really stinks. I hate the IRS!!!

Grandma,

Did you call the taxpayer advocate line??? I pulled this from the IRS website.

Call the Taxpayer Advocate Service Case Intake Line to see if you are eligible: 1-877-777-4778 or TTY/TTD: 1-800-829-4059.

The Taxpayer Advocate Service is an IRS program that provides an independent system to assure that tax problems, which have not been resolved through normal channels, are promptly and fairly handled. The National Taxpayer Advocate, Nina Olson, heads the program. Each state and campus has at least one local Taxpayer Advocate, who is independent of the local IRS office and reports directly to the National Taxpayer Advocate. The goals of the Taxpayer Advocate Service are to protect individual and business taxpayer rights and to reduce taxpayer burden. The Taxpayer Advocate independently represents your interests and concerns within the IRS. This is accomplished in two ways:

* Ensuring that taxpayer problems which have not been resolved through normal channels, are promptly and fairly handled;
* Identifying issues that increase burden or create problems for taxpayers: Bringing those issues to the attention of IRS management and making legislative proposals where necessary.

[grandmasusan]

Good news, the IRS sent over a release today so I will be getting a check for $4k in two weeks. It doesn't have to go to the trustee even though I filed. I will be able to use it to pay my bills.

Now I just have to hope the IRS stopped the garnishment on my spouse!

Thanks everyone for letting me vent!

Granny, I gave up on trying to work with the IRS. They are not the most helpful and used their IRS standards instead of my actual expenses to figure out a payment plan. I was supposed to pay them 6500 a month to pay off my 65k tax debt which would still acrue interest. Filing the BK was the best way to stop them in their tracks!

[Granny]

But you were successful in a way, you got your release. Although you had to file BK sooner than you wanted, at least you were able to do something.

Sometimes they can be real jerks, and you situation was a bit out of the ordinary.

Congrats on the small reward with them. I was worth your time and trouble end the end wasn't it?