tax levy garnishment on a bank account that is not mine

by Sandy
(Cincinnati)

I was issued a tax levy garnishment on my daughters bank account even though my name was on the account. I can prove the money in the account was her earned money from wages that were direct deposits from her employer and school fund from FSFA for college but the credit agency wiped it totally dry. They did this because my social security # was on the account as the secondary if something would happen to either of us. I am a single parent and the agency took everything from her.
The bank classified it as a "garnishment of a Tax Levy".

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May 09, 2013
tax levy garnishment on a bank account that is not mine
by: Debtcollectionanswers.com

Unfortunately, if your name was on the bank account and your social security number was associated with the account, then the tax entity probably had the right to take the money in the account if you owed back taxes. Having your name on it meant that you were an owner of the account.

You should have received numerous communications from the entity that levied the account for past due taxes regarding the fact that if the taxes were not paid, there would be a levy. And if you had responded to the notices, you might have been able to avoid the garnishment. For example, you might have been able to work out a payment plan for the past due taxes or you might have been able to settle the debt for less than the full amount you owed. Also, filing for bankruptcy could have helped you deal with your tax debt.

If you have any questions at this point, you should contact a consumer law attorney in your area.


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