Wage garnishments and collections

I was wondering if anyone could clarify whether that new statute of limitations law actually passed yet—the one where the clock doesn't even start ticking until a collection agent officially verifies the debt exists—or if it’s still just stuck in the legislative pipeline somewhere in D.C.? I guess if it is still just a proposal, does filing an objection to the statute of limitations right now mean they'd have to follow the current laws, where the clock starts running from the moment the obligation is first created?

Look, what you're actually digging into isn't just some single new or old rule, but rather two totally different sets of laws playing at once. That whole bit about the statute of limitations starting from the moment an obligation is established... that’s a specific quirk found within the federal tax code itself.
So, what's the deal exactly?

Since I’m probably not explaining this very clearly, here’s a link that covers what’s going on and basically what I’m trying to figure out.
To get into the specifics, I’m looking at some unpaid taxes and social security contributions from a small business I used to run—which isn't even active anymore. The debt is definitely there, but nobody has actually started the collection process or anything yet. Now, if I remember correctly, I think the absolute statute of limitations for tax debt kicks in after six years, while social security stuff lasts about ten? Is that actually right? What I really want to know is whether I could potentially use the statute of limitations as a defense if they ever decide to come after me, despite whatever that regulation in the link says.
Could someone please clarify if the info in this link actually applies to my situation, or if it's talking about something else entirely?

Scott Johnson66 said:Since I’m probably not explaining this very clearly, here’s a link that covers what’s going on and basically what I’m trying to figure out.
To get into the specifics, I’m looking at some unpaid taxes and social security contributions from a small business I used to run—which isn't even active anymore. The debt is definitely there, but nobody has actually started the collection process or anything yet. Now, if I remember correctly, I think the absolute statute of limitations for tax debt kicks in after six years, while social security stuff lasts about ten? Is that actually right? What I really want to know is whether I could potentially use the statute of limitations as a defense if they ever decide to come after me, despite whatever that regulation in the link says.
Could someone please clarify if the info in this link actually applies to my situation, or if it's talking about something else entirely?

I didn't bother clicking your link because my internet connection is so abysmal right now that it would take me half an hour just to load the page, so I can't comment on the specifics of your case. However, one thing is certain: the absolute statute of limitations is indeed 6 years for taxes and 10 years for social security contributions.
The IRS will not come running to warn you that the statute of limitations has passed, even when it is undeniably obvious. You have to take the initiative yourself by filing a formal request with the tax authorities to have the debt wiped out based on the expiration of the statute.
In your request, lay out all the facts that support your position, cite the specific sections of the tax code that favor you, and back everything up with copies of supporting documents (like the dissolution papers for your business to prove exactly when operations ceased, or the official notices from the IRS regarding those specific periods so they can verify the dates against the statute of limitations). If you don't have these documents on hand, write the request anyway, but make every effort to locate them in case the IRS decides to push back later.
You should also understand that no clerk at the IRS is going to lend you a hand or give you helpful advice regarding the statute of limitations. By order of the government, it is strictly not in their interest to let you off the hook for your debt.
Be extremely careful with your timelines. For instance, if you have a social security contribution debt from 2003, that doesn't mean the statute expired in 2013. The assessment for the 2003 period isn't finalized until 2004, which means the clock doesn't run out until 2014. Pay attention to these nuances; the IRS moves with terrifying efficiency to squeeze you for every cent if they see you are approaching a deadline. Only invoke the statute of limitations when you are 100% certain it has officially lapsed.
One more thing: make two copies of your request and all accompanying documentation. One goes to the IRS, and one stays with you. They are required to stamp your copy with the date of receipt. Keep that stamped copy safe; it serves as your only proof that you formally invoked the statute of limitations should anything go sideways.

Thanks for the help, though I guess most of this is still pretty fuzzy to me. What I’m actually trying to wrap my head around is whether those old statutes of limitations are even still a thing—like, do those six or ten-year windows still apply, or does everything just change starting this year because of that new law mentioned above?

Verizon double-charged me for the exact same amount twice over a three-year span, even though everything was paid up and set on autopay. Total screw-up. They swapped out their legal team and somehow "accidentally" kicked off a collection process against me. It was a massive pain in the ass just to get my money back. Honestly, the stress alone wasn't worth it—between driving all over town to deal with Chase, the courthouse, and my local bank, plus endless hours arguing with those assholes in the call center, I was losing my mind.

UNPAID PHONE BILL, UNPAID....

Hey,

I posted my experience on the AT&T thread, but I'm asking for advice here....

So, here's what happened.....

I walked into an AT&T store planning to sign a new contract, but the clerk just tells me, "Sir, you can't have a contract with us because of an outstanding debt."
At first, I thought it was some mistake and asked for details. The guy says I owe about 25 cents from back in 2009! He said it was sent over to Euler Hermes and gave me their number and email to deal with them.....

I got home and was totally confused. What debt? Then my wife reminded me I had an AT&T mobile data plan in 2009. I canceled it after one day because there was zero signal at my old place, and since I moved right away, I obviously never even got a bill for that single day of service.....

Man, it's frustrating. I Googled Euler Hermes (the debt collection agency) and it felt weird that they never actually called me to say I owed anything or ask for payment.
It seems to me they just pass these tiny debts to law firms. Those firms then drag things out using shady tactics to rack up fees until a $6.75 debt turns into something massive....

Euler Hermes sent me a paper saying my debt is closed and that I can use it to start a new contract. When I pushed them to explain what "closed" means—since I never actually paid the "debt"—they basically snapped at me. They said it's none of my business how it works. It's like they just handed it off to a firm that makes its living on collections.

I emailed AT&T to get an explanation, but they’re washing their hands of the whole thing. They claim they only keep records for a year so they can't send me a new bill, and via email, they just told me they'd forward my inquiry to "the appropriate departments".....
The letter I mailed to their address at 19th Street in Troy was returned to sender because they moved! Yet, the AT&T website still lists that exact address where my mail keeps bouncing back!!!

I am seriously frustrated and angry 🙂....What now? Just wait for a legal judgment?
I contacted FINRA (and I mean this sincerely, I really respect their service), but they told me they can't tell me which lawyer or notary started the process until a formal judgment hits and my account gets frozen.

Basically, I'm stuck waiting for a lawsuit that would have caught me completely by surprise if I hadn't walked into that AT&T store today 🙂....

Hoping some lawyer here has some wise advice....

Thanks

Scott Johnson66 said:Thanks for the help, though I guess most of this is still pretty fuzzy to me. What I’m actually trying to wrap my head around is whether those old statutes of limitations are even still a thing—like, do those six or ten-year windows still apply, or does everything just change starting this year because of that new law mentioned above?

From my understanding, this article is specifically addressing tax evasion. Tax evasion and simply failing to pay a tax liability are two entirely different beasts.
If the IRS is coming after you for unpaid taxes (which, in your case, I assume involves payroll taxes or something similar), that isn't evasion. If you haven't settled an established tax debt, it doesn't mean you evaded it—it just means you haven't paid it yet.
Tax evasion is the deliberate concealment of business facts with the specific intent to reduce or completely dodge a tax obligation that should have been paid.
Think of it like reporting lower profits than what actually exists to shrink your corporate tax bill, or fabricating losses to avoid paying any income tax at all. Those are classic examples.
The government introduces these types of laws because, in the past, they would uncover fraud only after the statute of limitations had already expired. For instance, if they discover a massive fraud scheme today regarding filings from 1998, the statute of limitations would have long since lapsed under old rules because more than 14 years had passed since that tax year. However, under this new legislation, the clock wouldn't start from 1998; it would start now, from the moment the fraud is uncovered.
Unless you have been actively hiding profits or underreporting your revenue, you shouldn't have anything to worry about.

Everything makes sense now, thanks a ton for the help..

Hi everyone! I’d really appreciate some insight if anyone here has dealt with this before...
Here’s the situation:
I know someone who is currently buried under a mountain of debt—everything from bank loans and unpaid cell phone bills to local municipal fines. They aren't working at the moment, so the debts are just piling up. They need to deposit some cash into a foreign currency account, and according to what I understand, those funds have to sit there for at least 24 hours. My big question is: what are the actual odds that one of these creditors will swoop in and freeze that specific account? Has anyone actually gone through this or seen it happen? Thanks in advance!

Frank Garcia85 said:UNPAID PHONE BILL, UNPAID....

Hey,

I posted my experience on the AT&T thread, but I'm asking for advice here....

So, here's what happened.....

I walked into an AT&T store planning to sign a new contract, but the clerk just tells me, "Sir, you can't have a contract with us because of an outstanding debt."
At first, I thought it was some mistake and asked for details. The guy says I owe about 25 cents from back in 2009! He said it was sent over to Euler Hermes and gave me their number and email to deal with them.....

I got home and was totally confused. What debt? Then my wife reminded me I had an AT&T mobile data plan in 2009. I canceled it after one day because there was zero signal at my old place, and since I moved right away, I obviously never even got a bill for that single day of service.....

Man, it's frustrating. I Googled Euler Hermes (the debt collection agency) and it felt weird that they never actually called me to say I owed anything or ask for payment.
It seems to me they just pass these tiny debts to law firms. Those firms then drag things out using shady tactics to rack up fees until a $6.75 debt turns into something massive....

Euler Hermes sent me a paper saying my debt is closed and that I can use it to start a new contract. When I pushed them to explain what "closed" means—since I never actually paid the "debt"—they basically snapped at me. They said it's none of my business how it works. It's like they just handed it off to a firm that makes its living on collections.

I emailed AT&T to get an explanation, but they’re washing their hands of the whole thing. They claim they only keep records for a year so they can't send me a new bill, and via email, they just told me they'd forward my inquiry to "the appropriate departments".....
The letter I mailed to their address at 19th Street in Troy was returned to sender because they moved! Yet, the AT&T website still lists that exact address where my mail keeps bouncing back!!!

I am seriously frustrated and angry 🙂....What now? Just wait for a legal judgment?
I contacted FINRA (and I mean this sincerely, I really respect their service), but they told me they can't tell me which lawyer or notary started the process until a formal judgment hits and my account gets frozen.

Basically, I'm stuck waiting for a lawsuit that would have caught me completely by surprise if I hadn't walked into that AT&T store today 🙂....

Hoping some lawyer here has some wise advice....

Thanks

Go ahead and contact the Better Business Bureau ASAP and ask them to step in... see how much more helpful they become once there's pressure... 😉
By the way, I think the statute of limitations on a debt like that is five years... but double-check. Just hit up the BBB directly and badger them until you get answers and legal advice...
Maybe even some consumer protection agency... and make sure you keep any paperwork proving the debt was settled... in court, that shows you acted in good faith... Verizon would issue the same kind of paper...

One more thing... if a law firm tries to garnish your wages, I suggest taking a heavy object and "convincing" those guys they've made a mistake... 😉
Because talking isn't going to do much with these collectors who only know how to put on a show... 😉

mistylynx55 said:Hi everyone! I’d really appreciate some insight if anyone here has dealt with this before...
Here’s the situation:
I know someone who is currently buried under a mountain of debt—everything from bank loans and unpaid cell phone bills to local municipal fines. They aren't working at the moment, so the debts are just piling up. They need to deposit some cash into a foreign currency account, and according to what I understand, those funds have to sit there for at least 24 hours. My big question is: what are the actual odds that one of these creditors will swoop in and freeze that specific account? Has anyone actually gone through this or seen it happen? Thanks in advance!

If there's an active garnishment or levy in progress, there's really no chance you'll get to that money in the foreign currency account. It's kind of like how if your main checking account is frozen by a creditor, they can usually reach into your other accounts too. Once the freeze is in place, it covers the bases.

redcrane22 said:If there's an active garnishment or levy in progress, there's really no chance you'll get to that money in the foreign currency account. It's kind of like how if your main checking account is frozen by a creditor, they can usually reach into your other accounts too. Once the freeze is in place, it covers the bases.

Thanks for the reply, though I think my question might have been a bit misunderstood...
Here’s the situation: the individual doesn't actually have a foreign currency account yet, but they plan to open one and deposit some cash into it. Now, since the money has to sit in the account for at least 24 hours before it can be withdrawn, I'm wondering if anyone knows if a creditor could swoop in during that window—specifically those 24 hours—and grab it? In other words, will the foreign currency account get automatically frozen as well? Currently, all the standard checking accounts are already blocked.

Thanks

mistylynx55 said:Thanks for the reply, though I think my question might have been a bit misunderstood...
Here’s the situation: the individual doesn't actually have a foreign currency account yet, but they plan to open one and deposit some cash into it. Now, since the money has to sit in the account for at least 24 hours before it can be withdrawn, I'm wondering if anyone knows if a creditor could swoop in during that window—specifically those 24 hours—and grab it? In other words, will the foreign currency account get automatically frozen as well? Currently, all the standard checking accounts are already blocked.

Thanks

The moment you open any account at any bank, it's automatically checked against the IRS records using your SSN, so it’ll get flagged and blocked immediately upon opening... honestly, there's no point in even bothering with a foreign currency account. There are people who take a cut to handle this kind of cash and hand it over to you in person for a fee... How do you know they won't scam you? Because that's how they make their living, and their whole pitch is "Yeah, I know a guy who can do it..."
Unfortunately, I don't know anyone like that, but maybe go look around... 😉

mistylynx55 said:Thanks for the reply, though I think my question might have been a bit misunderstood...
Here’s the situation: the individual doesn't actually have a foreign currency account yet, but they plan to open one and deposit some cash into it. Now, since the money has to sit in the account for at least 24 hours before it can be withdrawn, I'm wondering if anyone knows if a creditor could swoop in during that window—specifically those 24 hours—and grab it? In other words, will the foreign currency account get automatically frozen as well? Currently, all the standard checking accounts are already blocked.

Thanks

I hear what you're saying. But I'm telling you again, they won't be able to touch the money. Any amount moved there is still going to end up under OVR.

I could really use some advice here. It looks like my parents might be facing an OVR regarding their personal belongings—since they don't own a car, the focus will likely be on everything inside the house. I know the general assumption is that whatever is in the home belongs to the homeowner, but I’m worried about how to prove certain items are actually mine—like my laptop, phone, or jewelry. I bought those myself using my scholarship money and earnings from my part-time student job, but I have no idea how to actually prove that in court. Theoretically, someone could just claim everything in the apartment belongs to them to prevent an OVR, right?
I'd appreciate a quick response if possible.

So, how does someone actually find out if a company—like maybe ExxonMobil or Verizon—has kicked off an OVR against them?
It’s about some tiny debt that’s over a year old. Nobody reaches out, which doesn't necessarily mean nothing is happening... it could just mean they started the whole process a day before the statute of limitations hits without me having any clue at all...

He just gives the company a call to see what's up...

So what happens if a creditor tells the debtor they don't owe anything, signs a brand new contract with them in 2010, but then tries to restart an OVR in 2012 for some old debt from 2004 that was already being garnished from their paycheck back in 2007?
It turns out the employer totally dropped the ball on following the court order when they actually should have stepped up. They kept taking the principal amount out, and from what I was told, they can't just stop the garnishment on their own unless there's a legal reason to do so—plus they’re supposed to notify the court, which obviously didn't happen. We're talking about Verizon here... a massive company with like 500 employees.

When someone finally loses the will to argue, much like we have lately... especially when an OVR hits a payroll account that you were convinced didn't even need paying... Good grief... If you think this won't throw you completely off balance, while providing a bit of dark comedy along the way, then by all means, enjoy