Va Taking Money Out Of Your Bank Account Question

[tssnave]

Just how far is the VA's reach into your banking?

I know I've read about the VA taking money out of the account that they put the money into and it seems that years ago Free Spirit** wrote in a post that the VA took money out of another account that she had at the same bank that her husband's VA payments went to even though the husband was not on that account.

1. Has anyone else had the VA take money out of their account?

2. How about another account at the same bank that is NOT the one their VA check goes into?

3. Has the VA ever gone into accounts held in another bank where they do NOT deposit your VA check?

4. If not yourself, had you heard firsthand from someone who has had this problem?

5. **If Free Spirit is not the member who wrote about her banking issues with the VA after her husband passed away, does anyone remember who it was? They would have been posting in 2006/2007.

Thanks,

TS Snave

[broncovet]

Free is right and her advice is much better than mine..pointing out that even the IRS will give you 30 day notice. What I was referring to was "due process"...that is, the IRS does not have to go to a judge and get a court order, like everyone else.

[jerrbilly]

That's absolutely correct, they ain't gonna just all of a sudden start drafting money out of your account. They will send letters indicating the tax debt owed first. Been there, done that. Even if you're late on paying the debt all they will do is add interest every month so that the debt is payed off fast.

Jerr

I don't think the IRS just sucks money out of someone's bank account as a general rule. They usually try to collect from the person first. I don't think it is their practice to take money from your bank without notifying you that you owed them - and giving you a chance to pay or dispute the debt.

I think the VA's ability to take money from your account stems from the Direct Deposit authorization with that bank.

This site has some information on Federal Tax Levies

http://law.freeadvice.com/tax_law/income_t...-tax-levies.htm

It indicates that the IRS has to give you at least a 30 day notice that it intends to issue a Levy, give you the opportunity to respond, etc. before they can levy your bank account.

And even when they issue the levy, you have some rights to object, pay the funds, make an installment agreement, etc. before they actually take the funds.

I do not think the fact that VA checks are issued by the Department of the Treasury gives the VA ANY authority to just take money they THINK you might owe from any bank account you own without certain types of due process. Granted, the due process might be different than it is for money owed to a non-governmental agency or person. And they might not have to sue you in court - but I think they would have to notify you, prove you owed the money, and give you certain types of due process before they could levy an account at a bank they have no Direct Deposit authorization form for.

Free

[tssnave]

Free, thanks for the analysis, it helped me put everything together. Thanks also to all who've replied to this thread. While I don't owe the VA $$, my paranoia gets into full swing sometimes and I have to figure out what is a realistic concern and what is just me being bipolar (and given that lack of insight is part and parcel of bp that's not always easy) so I appreciate the feedback.

All our accounts are at the same bank (personal checking & the personal savings where the VA $$ is direct deposited) as well as my spouse's business checking account (which is what we live on). Years ago (before VA) the CPA suggested we set up the business account at a different bank but being so reluctant to change and having to learn anything new on the computer and since I am comfortable and can actually pay bills, transfer funds, etc with our bank we (ok, I was pushing the train on that one) ignored the CPA's advice and just opened the business account at the same bank as our personal checking/savings.

When I read Free's thread years ago it was while I was working my claim and VA was ignoring the letters from shrinks who treated me on active duty and denying sc so I didn't even know if I would prevail in the claim (two appeals later, I did, 100% P&T thanks to hadit and vawatchcdog and NVLSP) so it was just a horror story that didn't apply to me.

Well, it's tax time again and I'm getting tax papers together and it seems to me that it would be a good idea to get the business account set up at another bank. The spouse's business was in existence a decade before VA came into play. The EIN is aligned with the spouse's SSN, not mine, and I don't do the work but I do have signature authority on the account papers to pay bills so, while the exposure to risk is minimal, I don't want to risk the business that keeps our lives afloat.

The business account is NOT a joint account, but seeing how Free's individual account was garnished since she was a holder on the joint account, given a lax interpretation of the rules in VA's favor (which is the only way they read the regs) since I can sign checks on the business account, I may be considered to have an "interest" in the account (thanks again, Jbasser for the CFR info, dull/dry reading but informative) and if the VA ever decided to yank $$ out of any account I had an interest in, I would hate for it to come out of the business account. That would be an business accounting nightmare as well as mess up our household income stream since we draw/transfer $$ from the business account each month into the personal checking to live on.

Given the CPA advised separate banks upfront and that VA took the money out of Free's account without notice and all the other admin foul ups the VA does (one vet got a notice he didn't show up for a C&P exam that he was never alerted that he had - and they use a robophone system but who knows if the VA actually has your accurate phone number in their files - they've screwed up my address before and sent my big retro to the wrong zip code - thank you post office for getting that to me - as you all know, the list of VA admin SNAFUs is endless) I need to bite the bullet and agree to get another business account set up at another bank and then learn how to work their online banking (a big hairy deal for me all around, lots of stress and anxiety about the change and then having to learn anything new with computers).

Thanks again for the replies, it has helped me figure out what I need to do.

TS

Edited January 14, 2010 by tssnave