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      How to get your questions answered. A few observations, and requests of all members. All folks who come here are volunteers who do this on their own time and their own dime.To avoid burning out our best contributors please follow these guidelinesf you are reading a post and it reminds you of a question you want to ask, start a new topic, if you place your question in someone thread it will be difficult to distinguish your question from the original poster, you will get better results posting a new topic with your question. 1. Before Posting please do a search and see if your question has already been answered. If you find the answer print it out and put it in a file to use as a reference file, I find this helpful myself. 2. If you can not find the answer and you do post a question, please print out those answers and refer to them to avoid duplicate questions. 3. Refer to the Frequently Asked Questions4. Duplicate questions will come up from time to time but the keeping them to the minimum will lighten the load on the regular volunteers.5. Respect folks privacy do not request their personal phone numbers for claims help, it is inappropriate and not why they are here.6. Keep the topics focused on veterans issues, in closing Search first Search ... Ask second.it may save a lot of time or at the very least enlighten you.
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    • A bit about Tbird and HadIt.com for those who've asked...

      The following is on my About page, but some have been asking how this all happened. So here is my little story. Tbird US Navy 1983 – 1990 E-6 HadIt.com the website domain registered Jan 20, 1997 the domain is registered and paid for through Jan 21, 2023 at which time I plan to register it for another 15 years Lord willing and the creek don't rise. I guess the best place to start is Jan 1991; I had gotten out of the navy Dec 1990. At my separation seminar, there was a DAV rep Jim Milton he told us to bring our medical records in and he would look through them for us and let us know if we should file a claim with the VA. Well, bless his heart, he opened my medical file, reads the first insert, looks me straight in the eye, and says you will be 50% for the rest of your life and he would file the claim for me. 50% was for surgery I had in the service. True to his word he met with me and talked with me for a long time filled out my paper work and urged me to file for PTSD. I would not file the PTSD claim, nor even discuss it. By Feb 1991 I had moved to the San Francisco bay area and was staying at a friends apartment and pretty much I was just a puddle. In desperation one night I called suicide hot line, I had no job, no idea about going to the VA. They talked with me for a long time and explained to me that I could go to the local VA hospital even if I did not have insurance. Now, I know what you are thinking if I was 50% why didn't I just go to the VA in the first place, two reasons 1, this was Feb 1991 and the 50% didn't come till May and 2, even if it had come through it is unlikely that I would have had the mental acuity at the time to put the two together. I relate this here because it is where so many of our brothers and sisters are coming from, perhaps where you started. Fuzzy and unsure, in pain and sometimes homeless they come to the VA hospital for help. And that is where I ended up. Up to the pysch ward I went, blah, blah, blah, a few days later I was released with a promise of a call from the out patient program, which I would soon be entering. Blah, blah, blah, after many missed communications, and no call backs I was at the Day Hospital everyday M-F. And this brothers and sisters is where I began to learn and formulate my plan for HadIt.com. Veterans, veterans everywhere…I spent a year in the day hospital and about another year at a sheltered workshop before I got back on my feet. So I just talked to veterans everyday waiting for appointments, waiting for prescriptions, waiting for a vet rep and I started to learn the system. While in the navy I was data analyst and had to learn a 5 volume manual and just about anything you were suppose to do was in that manual. So I figured there must be a manual on how to do a VA claim or at the very least regulations. So I found out about the Code of Federal Regulations, United States Code, Veterans Affairs Manuals and so on and so forth. Of course this was 1991/1992 I was living in a tiny studio apartment in a particularly bad neighborhood, working in a sheltered workshop making a nickel per envelope I stuffed throw in PTSD and you will see that it was a difficult task for me to get somewhere where they had copies of these, let alone that they would let me look at. And there was so much knowledge around me, it was like the gold rush in those days, I could just sit on a bench a veteran would sit down next to me a little conversation later I had another nugget, I made copious notes. Phone numbers to call, ask for this guy or that guy he'll give you the straight scoop and they'd slip me a piece of paper with a number on it. You want to read this regulation or that one and another slip of paper into my hand. I spent a lot of time on those benches watching the squirrels they gathered their nuts and I gathered mine :) So I'm thinking I could put a little handbook together print it out and hand it out at the VA. Or perhaps fliers. Still formulating, time goes by, 1994/1995 I am being treated for PTSD regularly and doing and feeling much better and I go to work for a company as a marketing systems analyst and I discover the internet. Well let me tell you that was perhaps one of the most significant life changing events I have ever experienced. And I might add finally a positive one :) It seemed only natural to me that surely there must be a website that contained all the knowledge I wanted, well as it turned out not so much, lots of stuff but I wanted to get straight to the claims information and there was a lot of stuff to wade through to get to it. So taking my lesson from the squirrels earlier I started to gather, gather, gather…and learn HTML and work as a marketing systems analyst and work my claim. 1996/1997 major PTSD cork blows and unemployed. Working my claim, working the website. 20 Jan 1997 register HadIt.com domain name right after getting off the phone with the VA and saying I've had it with this. As fate would have it the old DAV board goes down just as mine opens up and folks start to wander in. So HadIt.com has two main components the website which supports the discussion board with links, articles, research resources etc. The website starts to grow, I can't tell you how many times I had to switch servers for space and features. I continue on a downward trend and in 1998 ended up back home in St Louis living in my sisters basement in therapy and working it, I swear I would have swung a dead chicken around my head at midnight naked if I thought it would have helped. The website continued to do great during this time, I just stayed in the basement bought new software, new books, and learned how to make things work and I continued to use this knowledge to make HadIt.com better. My 100% finally came through from the VA and I had a friend who is an advocate who helped me thru my SSDI claim, he was literally at my side thru the entire process and that came through for me. My therapist and sister continued to try and get me to leave the basement, but to no avail. At some point in 1998 or 1999 I put a counter on the website and was shocked to discover how many visitors we were getting. Time goes by my sister gets married and I move from the basement to the upstairs, there is much celebration that Aunt T is living in the light again. More time goes by and I settle into my life in St Louis and spend more time on the site trying new things, finding more information. 2003 I buy my own home VA loan. For years now I have just considered HadIt.com my job and I get up every morning go to the office and work for several hours, take an afternoon break and see where the rest of day takes me. I have a place in the office to use the computer and a comfortable to place to read journals and articles and take notes. Blah, blah, blah so that is my story and HadIt.com's intertwined.
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      Hi I've updated our HadIt.com Pass It On Cards. They are in a PDF format you can print them out cut them there are 12 to a page. If you have found HadIt.com helpful and would like to pass it on to other veterans this is an easy way to do it.I hope you find them helpful, feel free to leave a few anywhere veterans gather, veterans centers, veterans hospitals, public libraries, be creative. Please make sure though, that if you want to leave some at any business you ask permission first.Here you go http://www.hadit.com...it_on_cards.pdf
    • VA Training and Fast Letter Forum Index

      VA Training and Fast Letter Forum Index The following is the index with links to the various Training and Fast Letters plus a few miscellaneous. These letters are not necessarily in the original formatting. I have tried to present them in an easy-to-read form instead of some forms as originally presented. Some of the paragraphs were WAAAAYYY too long. lol - HadIt.com Member fanaticbooks Something to be aware.... Some of these letters may be rescinded, outdated, or otherwise no longer viable. I have still included them because sometimes they provide additional insight or just plain more information than the newest version. Use them wisely. The oldest letters will display at the bottom with the latest letters displayed at the top, all in sequential numbers. Coding of the letters... FL = Fast Letter TL = Training Letter First two numbers = last two digits of year of origin Training Letter http://www.hadit.com/forums/index.php?/topic/40694-va-tl-00-07/ http://www.hadit.com/forums/index.php?/topic/40693-va-tl-00-06/ Fast Letter Number Title http://www.hadit.com/forums/index.php?/topic/44262-va-fl-11-15/ http://www.hadit.com/forums/index.php?/topic/44260-va-fl-11-13/ http://www.hadit.com/forums/index.php?/topic/44261-va-fl-11-11/ http://www.hadit.com/forums/index.php?/topic/44310-va-fl-11-09/ http://www.hadit.com/forums/index.php?/topic/42151-va-fl-11-03/ http://www.hadit.com/forums/index.php?/topic/40957-va-fl-10-49/ http://www.hadit.com/forums/index.php?/topic/40958-va-fl-10-46/ http://www.hadit.com/forums/index.php?/topic/40959-va-fl-10-45/ http://www.hadit.com/forums/index.php?/topic/40960-va-fl-10-42/ http://www.hadit.com/forums/index.php?/topic/40961-va-fl-10-39/ http://www.hadit.com/forums/index.php?/topic/40962-va-fl-10-35/ 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Back Taxes And Va Disability Payment

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Hi All, I have a question regarding Disability lump sum payment and back taxes. My husband and I are in a payment arrangement with the IRS for back taxes. We pay them a monthly amount, and they keep whatever tax refund we get and apply it toward the balance. No problems there.

My question is: when my husband receives his retro pay for his va claim, can the IRS take that money to apply toward the tax debt?

We don't currenlty have any liens or action from the IRS, just a payment agreement that we honor.

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10 answers to this question

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I think I would consult with a tax lawyer. You want to get this right.

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Posted · Report post

Hi All, I have a question regarding Disability lump sum payment and back taxes. My husband and I are in a payment arrangement with the IRS for back taxes. We pay them a monthly amount, and they keep whatever tax refund we get and apply it toward the balance. No problems there.

My question is: when my husband receives his retro pay for his va claim, can the IRS take that money to apply toward the tax debt?

We don't currenlty have any liens or action from the IRS, just a payment agreement that we honor.

If you can, give me a little more information.

a: Is he still working?

b: Did he quit because of a disability?

c: Is the tax problems a result of cashing out a 401K?

If this is the case then somemthing can be done.

On the other hand, if you owe a goverment agency the agency can take what is owed. Especially if you are using direct deposit.

J

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Posted · Report post

He is not working, he stopped working because the job ended, but due to the disability, he is unable to get another job. The tax problems are not because of cashing out a 401, just taxes due from years ago. I have been actively paying on the arrangement and there are no liens. However, in spite of the information below, if they take even a penny of the back pay, I fear my husband will really lose it.

I read on the IRS website:

There shall be exempt from levy—

(10) Certain service-connected disability payments Any amount payable to an individual as a service-connected (within the meaning of section 101 (16) (The term “service-connected” means, with respect to disability or death, that such disability was incurred or aggravated, or that the death resulted from a disability incurred or aggravated, in line of duty in the active military, naval, or air service.) of title 38, United States Code) disability benefit under— Veterans disability benefits have specific protection from levy or seizure under United States Code Title 26, 6334. The IRS cannot seize the benefits to pay a tax debt under that law.

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Posted · Report post

"The IRS cannot seize the benefits to pay a tax debt under that law." I really don't think this will protect you and your husband. What this means is that the IRS can not go directly to the VA and tell them that this Veteran owes back taxes, and we would like for you to sent us a check instead of to the Veteran. They can not do that, but once it is direct deposited into your bank account, the IRS may have the lawful means of obtaining the funds. However, what I would do is go to your local IRS office and plainly ask them will they go after my husbands VA disability lump sum to pay off these taxes? Another thing you may want to consider is the kind of interest and penalties charges you are paying on these back taxes by paying a certain amount each month. Another thing I would do at the IRS office is tell them that my husband is a disabled Veteran who is unable to work any more, and these payments each month is causing us undue hardships, and would like for you to consider waiving the balance due. Don't laugh, as it has been done before.

Papa

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Posted · Report post

I got lump sums from Social Security and VA several times in fact when I owed IRS a lot of money. Never had a problem but I understand your worry. If you are up to date with your payment plan I don;t think that you will have a problem.

I still resent that the IRS treated me horribly and most of my so called debt arose from penalties and interest on money that I save when working and for most part had paid taxes once but was penalized for using the money to live on.

However I still got my money drawn down and had it replaced with cashiers checks just in case.

Every few years I write the President and ask if our government could consider some kind of tax amnesty for disabled but get nothing but polite responses. My reasons are simple not many disabled are ever able to return to work and why should they have to worry about the IRS when they have limited income.

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Posted · Report post

Thanks Papa and Pete. Ok, so I understand that the IRS cannot go directly to the VA and request the money be sent to them. However, wouldn't the direct deposit be no different than my paycheck being direct deposited? They don't fool with that.

I think the best solution will be to request the first payment in a check (if they will do that). Then open a new account for the monthly payments.

I just don't trust the IRS and if they make a mistake and take the money, I will probably have no luck at all getting it back.

Thanks everyone for the comments, I just need to make sure they honor their side of the bargain and not try to screw us (again)

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Posted · Report post

The problem with direct deposit is that in order to be able to correct an "incorrect" transaction, the depositor is automatically given the ability to also withdraw. The banking laws, etc. set forth the details.

As a result, the check is "safer", in that if the check issuer screws up, and issues a check in an improper amount, the laws concerning checks place most of the burden on the issuer.

Remember that the government, if it chooses to do so, can easily identify each and every account held by and individual. All you can do is make the task a little more involved.

There are ways to sometimes get IRS debts reduced or "forgiven". It's just that dealing with the IRS directly usually does not get the job done.

Thanks Papa and Pete. Ok, so I understand that the IRS cannot go directly to the VA and request the money be sent to them. However, wouldn't the direct deposit be no different than my paycheck being direct deposited? They don't fool with that.

I think the best solution will be to request the first payment in a check (if they will do that). Then open a new account for the monthly payments.

I just don't trust the IRS and if they make a mistake and take the money, I will probably have no luck at all getting it back.

Thanks everyone for the comments, I just need to make sure they honor their side of the bargain and not try to screw us (again)

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Posted · Report post

"The IRS cannot seize the benefits to pay a tax debt under that law." I really don't think this will protect you and your husband. What this means is that the IRS can not go directly to the VA and tell them that this Veteran owes back taxes, and we would like for you to sent us a check instead of to the Veteran. They can not do that, but once it is direct deposited into your bank account, the IRS may have the lawful means of obtaining the funds. However, what I would do is go to your local IRS office and plainly ask them will they go after my husbands VA disability lump sum to pay off these taxes? Another thing you may want to consider is the kind of interest and penalties charges you are paying on these back taxes by paying a certain amount each month. Another thing I would do at the IRS office is tell them that my husband is a disabled Veteran who is unable to work any more, and these payments each month is causing us undue hardships, and would like for you to consider waiving the balance due. Don't laugh, as it has been done before.

Papa

How would the IRS know you just received a lump settlement from the VA unless you told them? I am now in that ugly situation with the IRS, and I plan on doing a payment plan with them. Also plan on keeping my lips sealed about anything that is none of their business. As far as I know, as long you make your payments every month, they have no business checking your bank account and taking what they feel like. If they did, I would probably take them to court and make 1 helluva of federal case out of this!

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Cool Breeze,

Banks are required to send to the IRS certain information like interest income, and if want they can also have a look at our accounts. I agree, it is not right. Also, these payment plans are not a right, as I have had clients turned down for payment plans. The IRS basically is like the VA, they can do whatever they like to screw you, and you don't want to piss them off since they can do more damage to you than you to them.

Papa

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If you have not already signed an agreement with the IRS and they are not doing anything all that active you might consider waiting them out.

For me the IRS took no enforcement except the threats and intimidation but after 10 years dropped the liens and forgave the taxes I owed. It was over 70,000.

I think that you really need to talk to someone who knows what is going on the IRS certainly won't tell you and if you make an offer in compromise or sign and agreement they start a new clock for another 10 years. Yes I lost every refund which was ours and paid a lot of miscellaneous but t never was the full amount.

I am not giving advice I am sharing what happened to me.

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