Can AAFES take your tax refund if you never received statements after leaving the service nd have no idea what the amount is?

I forwarded my mail after leaving the serice......yet I never received anything from AAFES and see online that there are multiple class-action lawsuits concerning the practices they choose to use towards veterans. My 2,300.00 tax refund has been taken without any kind of notice that this IRS action would be taken towards my "debt" with them, and there was never any effort to allow payment arrangements..... How in the world is this legal? Or am I just highly upset about something for nothing...THANKS for the RESPONSE!

Pensacola, FL -

Attorney Answers (2)

Curtis Lamar Harrington Jr

Curtis Lamar Harrington Jr

Tax Lawyer - Long Beach, CA

2,300.00 tax refund

Tax refund money represents OVERWITHHOLDING during the year.

When you overwithhold to the point that you get a refund that is more than $5, the

taxpayer is hurting himself. This money simply represents a loan of taxpayer money to the

government for which the taxpayer is not compensated with any interest. Even worse, the

tax refund can be taken. What needs to be done is to adjust your withholding to a rate that

will project to little or almost no tax withholding on income taxes. Wouldn't the money

be better used when it was earned rather than leaving it on a table for others to take?

Make the IRS show you why you owe, in detail. YOU must be convinced of the legitimacy of what was done.

Please remember to designate your question's BEST ANSWER.

Please remember to designate your question's BEST ANSWER.

Curt Harrington
(562) 594-9784
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Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal... more
Dana Whitney Atchley

Dana Whitney Atchley

Tax Lawyer - New York, NY

If the ten-year statute of limitations has not run on the debt you owe to AAFES, then they are most likely allowed to use so-called administrative offset to collect your debt from any tax refunds you may otherwise be due. Certain federal and state non-tax agencies are permitted by federal law to forward to the IRS the debts owed to them by taxpayers and to have the IRS apply any refunds the taxpayer is owed to those debts. So long as proper procedures were followed and the statute of limitations on the underlying debt did not expire, then the action was probably legal.

However, there is no way for me or anyone else on this forum to tell you whether all the proper procedures were followed in your particular case. In order to find out if proper procedures were followed and if the seizure of your return was otherwise legal, you will have to consult with a local tax attorney who has experience in these sorts of matters (which typically fall under the broad category of "tax controversies").

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