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Can a collection agency garnish your income taxes?

Can a creditor take your federal or state income tax refund to pay a judgment?

Tax Refund Issue

If the judgment is for state or federal taxes then any refund is subject to seizure by the agency holding the judgment.

If it is a creditor judgment, a tax refund would only be subject to attachment if it were placed in a bank account that was being levied by the judgment creditor.

I would consult with a tax attorney.

taken fron an IRS web site

Sub: #1 posted on Wed, 01/23/2008 - 02:10

kashzan kashzan

(Posts: 5401 | Credits: 408.31)

If the collection agency is collecting from a student loan or some type of government debt such as the IRS, child support.. then the answer is yes.

Sub: #2 posted on Wed, 01/23/2008 - 02:59

(Posts: 1950 | Credits: 200.54)

What kind of debt is this, credit card, unsecured or secured debt?


Sub: #3 posted on Wed, 01/23/2008 - 03:10

ladybug ladybug

(Posts: 2757 | Credits: 282.44)

It is a credit card debt from Direct Merchants Bank who I have found out to be affiliated with the malicious Worldwide Asset Corporation LLC. I received a letter from that stated that judgement had been reached back in '06 in excess of $8,000.00. What should I do?

Sub: #4 posted on Wed, 01/23/2008 - 21:48


They can not touch your irs refund

Sub: #5 posted on Wed, 01/23/2008 - 21:50

kashzan kashzan

(Posts: 5401 | Credits: 408.31)

I believe your answer is above in Kashzan's post. They would have to take you to court and win a judgement against you. I would consult a tax lawyer though...have you received court documents?

Sub: #6 posted on Wed, 01/23/2008 - 21:56

laura19544 laura19544

(Posts: 456 | Credits: 69.04)

the first thing you should do is substantiate their claims. They just told you that they obtained a judgment against you--you need to know for certain if this did in fact take place. If they got a judgment, and you have no knowledge of it ever going to court, you need to check into how the summons was served. You may have a case to have a judge vacate the judgment because of unlawful or improper service. You really need to start at the beginning on this one. It is not uncommon today at all for CA's to claim they have a judgment when they dont--it is illegal, but they do it anyways.

That's the first thing I would check into--make sure that there even was a judgment to begin with. If there wasnt, then they just violated the fdcpa because they are not allowed to use deceptive means like that in a collection attempt. The funny thing about it to me is this-I could be wrong but in a real judgment, they dont need to come to you anymore and ask you to pay. They have the court on their side, and they can move ahead with asset seizure, wage garnishment, etc etc etc. Also, I dont see why they would have waited two years to finally say "hey, we won a judgment against you, now we want our money". It just doesnt seem right to me.

Sub: #7 posted on Thu, 01/24/2008 - 02:12


i owe on a student loan in which i am paying on it each month,can the irs take money from my income tax check.

Sub: #8 posted on Mon, 01/28/2008 - 02:37


If it was a federal student loan, yes they can. If it was from a private source, then you would have to go to civil court to be garnished. The IRS can garnish on any federal or state debt that's owed--so if this loan was from Sally Mae or any other federal source, then they could easily do this.

Sub: #9 posted on Mon, 01/28/2008 - 08:16

kscornell kscornell
(Posts: 4409 | Credits: 473.19)

Isn't there a toll free number to call to see if there is any kind of pending payment due that will be taken from your income tax refund?
If so does anyone know what that number is?

Sub: #10 posted on Fri, 12/05/2008 - 04:37


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