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The state is trying to collect taxes that are not due!! in 2014 we took out money from our retirement and paid the taxes on the 2014 federal and state returns. In 2016, the IRS came back and said we took out more in our retirement than what we reported but that was not the case. We sent all paperwork to the IRS showing what was taken out and they are still adjusting are return, and they keep sending us letters saying they need more time to resolve the issue. In the meantime, the state is now garnishing my wages for taxes that were not due since the IRS has not finalized our return. How can I get this to stop by the state? I have sent them all the letters I have got from the IRS and they say they cannot do anything about it.
Mar 22, 2019
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Bill HenryFounding Partner | 18 years of experience
Profile Picture of Attorney Bill Henry
Profile Picture of Attorney Bill Henry
Bill HenryFounding Partner 18 years of experience

I am sorry to hear about your trouble. Generally, the State is much quicker on the draw than the IRS is as far as issuing garnishments. The best thing to do is to call the Discovery section of CDOR and plead your case with them. Let them know all the facts and offer to send them not only the IRS notices, but all of the items you offered to the IRS to prove the mistake. (Basically make the case to CDOR as well as the IRS). You should ask them for a hold on collection activity while the IRS makes their determination. Sometimes, they will ask that you enter into an installment agreement while the matter is investigated. It does seem silly that you would have to pay on a debt that you do not owe, but once you are vindicated, CDOR should refund any money they have taken that is not rightfully theirs. Unfortunately, even if you do everything right, they may still be unwilling to stop the garnishment until you produce something from the IRS showing that there was an error. If this is the case, it may be worth your while to have an experienced advocate assist you. We offer free case assessments and would be happy to assist you in any way.

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