By Jaedda Armstrong
John Harris was looking forward to the extra cash from his federal economic stimulus check. He was going to use it to have a sty removed from his wife's eye, and to get a few personal things for himself.
But a few days before the check arrived, Harris received a letter from the Internal Revenue Service, telling him that about $482 of his $600 check would be taken to pay a debt.
Harris almost fainted.
His story is not unique. Federal officials have collected about $1.27 billion in delinquent debts by seizing payments due to taxpayers this year, said Melody Barrett, spokeswoman for the U.S. Treasury Department's Financial Management Service.
That's out of $70.8 billion sent so far, or less than 2 percent of the total.
The stimulus payments are intended to help the gloomy economy by putting cash in people's pockets. But those who owe child support, federal non-tax debts such as student loans, or delinquent state taxes may have their stimulus payments spent for them.
More than half the funds taken has been for delinquent child support, Barrett said, and that money is going to families and children.
As of late June, the commonwealth's Division of Child Support Enforcement has intercepted $5.8 million from economic stimulus payments on behalf of Virginia's children, said Virginia Department of Social Services spokeswoman Marianne McGhee. McGhee said that number could reach $20 million.
The stimulus payments are as much as $600 for single taxpayers and $1,200 for most joint tax filers, with $300 for each additional dependent child younger than 17. The IRS has been sending stimulus checks since late April and will continue until mid-July. About 130 million households will receive stimulus payments, the IRS said.
Harris, of Norfolk, said his debt was from food stamps his family received during Hurricane Isabel in 2003. His electricity was off for eight days and his family needed food, Harris said. He took advantage of the Disaster Food Stamp Program, a pilot program administered by the city's Department of Human Services to aid people hit hard by the storm.
"We were running around trying to find a bologna sandwich like everybody else," Harris said. "Why should I pay for something that was supposed to be helping people out?"
The U.S. Department of Agriculture ordered audits of emergency assistance applications that came in after the hurricane damaged homes in Hampton Roads.
The IRS informed Harris he owed money to the city's Department of Human Services. When he called them, he was told he had to reimburse the city for food stamps. They told him he didn't qualify for the stamps.
Federal agencies must notify taxpayers of overdue debts. Under federal law, debts are turned over to the Treasury's Financial Management Service after 180 days. Stimulus payments, Barrett said, like other federal payments, can be seized as required by the law.
Harris said the stimulus payment had been like a blessing because no one expected it.
"People were depending on that money; it's not much but it's supposed to be for the people. You're giving us money just so you can take it away."
After numerous calls to the city, Harris was told there was nothing he could do. He says he was told the government is always right.
Jerry Crain, a certified public accountant with Craver, Green and Co. in Norfolk, disagrees.
"The government does make mistakes," Crain said.
But, he said, the government has the power to withhold any money that's owed to it.
"If you owe the government money, they can garnish it from any refund," Crain said. "It doesn't do any good to ignore notices. It would be better... to deal with it immediately."
Jaedda Armstrong, (757) 446-2346, jaedda.armstrong@pilotonline.com
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Free Money....
Free Money for the Government - Er...let me see if I get this right: You owed a debt. You owe interest on the money you did not pay on that debt, and as you make payments on the debt you continue to accrue interest on the amount you have not paid (including the interest you have not paid). Is that correct? Hmmmm...sounds EXACTLY like the rules that I live under for all my other debts, so YES it sounds perfectly fair.
I am sorry if that does not make you happy, or makes your situation less desirable, but it is exactly the way life treats everyone else here. I am sure you had a good reason for falling behind on your obligations and that you are a good person - blah-blah...but don't ask for sympathy for being treated in your debt the way I am in all the rest of my debts.
As far as this article. If he owed money he should have cleared it up. If he felt there was an error, it was his responsibility to clear it up, or at least
Fair is fair
I owe the IRS about 4 grand because I had to cash in a 401k for surgery expenses as I was self employed and was foolish enough not to have health insurance for a 6 month period. I have been on a payment plan and have paid on time, every time for 2 years.
I do not know the status of my rebate check but I am assuming it will be appiled towards my outstanding balance owed. That is only fair is how I look at it. While 600 bucks would be handy, at least it is going towards the reduction of my balance. I guess I do not understand the griping. I am glad to see these dollars go towards old goverment debts rather than taxpayers having to eat it. Some folks seem to think they are entitled to the money, cash in hand, no matter how much or how long they have owed a goverment debt.
Poor Poor Idiot
So lets see here, he lied, he stole, he got away withit for five years and he wants pity. The idiot is lucky he didn't go to jail and he should have. I guess the sty in his wifes eye will just have to wait until he figures out how to steal something else.
More of the same
Guy's, I know you are just going to think I am engaging in shameless Obama bashing, but I would bet my last dollar I know who Source and the subject of the article are voting for in the next election. Many people beleive if they elect someone they perceive will assist them they will be better off. The problem as many others have pointed out is that their is a balance in the financial markets and to offer the "free money" knocks that out of whack. There are two posters here I have read who do not seem to recognize this balance. As if the substance of the issue does not exist. If he does not qualify, he does not qualify. Why would the goverment owe anyone money baffles me to start with. The amount is dubious as well. My family of four does not spend much more than that for a months groceries. Why was the goverment allocating such a large amount?
what's your point mary?
Your born again Christian light does not sway the irony.
Only a partial effort to collect support.
The whole problem with this "automatic child support collection" through the stimulus package, is they're not mentioning how they're stimulating the government itself. Who's going to pay the fees and the collection charges? How about taking EXTRA from these people who're losing a "part" of their tax refunds and incentives to cover the fees the commonwealth now charges?
People Needed Stimulus Checks!!!
Those people leaving comments saying "they owed the money", please take a moment & think what the "stimulus" check was suppossed to be for, to help struggling Americans & the economy. I have a great job, I'm single and I gross appx $45k p/year. I don't qualify for any type of affordable housing, so I pay over $1,100p/mth for my apartment; add insurance (auto, renters, & health), utilities, car payment, property taxes, etc., that doesn't leave much money to live on. I had a life threatning illness last year and was out of work for over a mth. With short term disability I did receive 1/2 of my pay. But factor in doc/hospital/medicine copays, I am now struggling! I owed the IRS $476 from last year, which I was paying. The went ahead and deducted the full amount from my stimulus check making it a whopping $124. Nice to see my American Dream hasn't turned into a nightmare yet.
federal tax debt
Just to set the record straight. People are saying your stimulus check can be garnished for everything but FEDERAL TAX DEBTS. Well that's not true. I owed the Feds $1100 for taxes last year, oops my bad. Now I only owe them $500. Should I whine and demand my $600 back so I can send it to them? Maybe I'm just glad to save 42 cents in postage.
When is a stimulus package not a stimulus?
Keith is definitely dead on with this: the money for the stimulus package had to be borrowed from another country which put America FURTHER into debt. Is that ridiculous or what? Debts that are owed need to be paid: Mr.Harris has no right to whine about what happened and now, because he came out about it, makes like a laughing stock. Child support scofflaws should be prosecuted heavily - AND have their wages garnished.
What did we do with our 'stimulus' check? Paid down some a bills and went out to dinner and a movie - our part to 'stimulate' the economy.
Gabrielle
So you're saying you spent the money before you actually got it? Whether or not it came electronically or in check form, why would you blow it before it showed up in your bank account? Do you really expect anyone to feel sorry for you???
jaedda sounds jaded
article writer: The stimulus payments are intended to help the gloomy economy by putting cash in people's pockets. But those who owe child support, federal non-tax debts such as student loans, or delinquent state taxes may have their stimulus payments spent for them.
-------------------------------------------------
spent for them?
thank you, Uncle Sam, for holding people accountable for their debts.
Mr. Crain is correct
>>>"The government does make mistakes," Crain said.<<<
We were supposed to receive a direct deposit of our stimulus chek on or about May 9th. It showed up as a paper check on June 30th. That money was needed back when the gov said we were going to get it. None of it got deducted because it was a paper check and we don't owe any government entity any money, but because of the gov mistake we wound up owing our bak a bunch.
Food stamps after hurricane
In many areas after a Hurricane, Food stamps are given out to help families in need of food after a disaster. After both Hurricane Ivan and Dennis in Florida, my family received a one time food stamps payment of $500.00 to buy food and whatever else as we had lost all the food in our house after being without electricity for more than a week. If this is the program being talked about in the article, then the man shouldn't be made to repay money if he was told at the time he was eligible. My family doesn't ordinarily require nor qualify for food stamps, but in a time of need they were a blessing.
As for the comments made about child support, if you owe it you pay it, that simple. Doesn't matter if the child(ren) turn 18 or not, you owed that money for their support and you have to pay it.
What's your point, Keith?
I'm a born again Christian and porn offends me personally but . . . it is not illegal to spend one's personal money on it, even the economic stimulus check. Cheers, MGM
Parts of the economy are being 'stimulated'
http://www.huffingtonpost.com/2008/07/02/nation-buys-porn-with-sti_n_110457.html
According to Kirk Mishkin, Head Research Consultant for AIMRCo, "Many of the sites we surveyed have reported 20-30% growth in membership rates since mid-May when the checks were first sent out, and typically the summer is a slow period for this market."
It's amazing!
So many people out there are comfortable riding the system and expecting everyone else to pick up their tab. They ought to be ashamed! Get out and earn your way like everyone else does. Isabel didn't blow away our bank account. We had money to buy food and pay for whatever we needed. As for the deadbeat parents out there that had kids, left them, and now think you shouldn't have to help with their financial support . . . stop being selfish and irresponsible! I'm the step mom of two boys whose mother has not seen them in six years, hasn't spoken to them in four years (when she called to tell them they had a baby brother by someone they don't even know??!), and who is $17,000 + in arrears since 2005. She hasn't purchased the first pair of shoes, a stitch of clothing, a book, a pair of glasses, helped pay for a doctor's visit, NOTHING! She couldn't care less how these boys are living. It's a good thing some of us are responsible and step up to the plate and do the right thing.
Win-win
I'll bet the child support that is collected *will* go straight back into boosting the economy! I don't know too many single parents who are going to bank it! Cheers, MGM
wow...
dont get me wrong, i believe if you owe it that you should pay it back... that being said, this stimulus package was designed to boost the economy... if paying child support is boosting the economy, then thats a good look...however, i seriously doubt that this is happening... why couldn't the gov't tax previous tax returns, regular income, etc made by the guy in the article?? you have to ask yourself whats more important in this situation... Boosting the economy to help out the country/economy or getting some child support partially paid? either way you slice it, this whole financial system in the US needs an overhaul... seems like nothing is working anymore...Child support, welfare, social security, unemployment benefits, stimulus packages, etc...
ps...that Q and A response was funny...158 % true...people need to pay attention and take notes...
What ever happened to personal responsibility??
What am I not understanding here? You make babies, you are supposed to support them. That's why they call it "child support!" Hello!!
Most of us were without power for days after Isobel and we all lost food and we were all running all over the place, dealing with curfews, trying to get a "bologna sandwich."
Now, if I "borrowed" money to get through the period after Isobel, be that loan from the government or from an individual, I would have paid it back. If I didn't, some time over the past five years, I would expect there to be consequences. And...I wouldn't expect people to feel sorry for me because I didn't take care of my debt and had to deal with consequences.
Mr. Harris needs to "man up" and take care of his responsibilities...and so do the dead-beat parents posting on this board.
The hurricane was about 5 years ago,
if Mr Harris has been ignoring his debt because he wasn't eligible for Food Stamps, then the interest has been piling up...When was he first notified that he owed the money back?? Why didn't he pay it? Just another example of "I am here for a government handout".. Food Stamps are for people who can't afford to feed their family, just because you were without electricity for eight days (like most of us) doesn't qualify you for Food Stamps...
Stimulus Check
What really sucks about this check (or lack of one in my case), is the fact that my husband of 4yrs and his ex owe back taxes so I have to give up my $1,200.00 because of their stupidity. It was bad enough that I have not received a tax return in 4 yrs, now I have to give up my stimulus check too!
Comment by the Source
The "Source" is prob his buddy in next door who also committed fraud and thinks the American taxpayer should give him a free ride as well. Get off the couch and work for what you want!
Ignorance
Is it just me, or is the comment from "the source" the most ignorant of all?
Umm . . .
In the aftermath of Isabel, do ya'll remember that most parts of this area lacked electricity for at least a week? So the way Mr. Harris got emergency food stamps was because the computers weren't up and running to catch the fact that he did not suddenly qualify for food stamps as a result of a hurricane (like none of the rest of us did who were not already getting food stamps). So . . . he puts in his paperwork and *he* is mistaken, not the government. He gets his food and doesn't have to worry about starving while the power is out. Sounds like the Feds caught his mistake (or perhaps he might even have realized he didn't qualify at the time, but he was desperate for the food and took the risk) as soon as the computers were back on-line and that the government has been asking for the money back for the last five years. If he won't willingly give it to them, there is only one way they can get it and . . . he just found out how. I would call this a non-story, too. Cheers, MGM
keithb64840, you are my HERO
Keithb64840, your's is the most intelligent comment I have seen on this board, bar none.
No one seems to be paying attention but the fact is, our country utilizes "just in time" inventory which means that, if truckers go on strike over oil prices (as they have in Europe) then our grocery shelves will be bare within 3-4 days. I shudder when I think what'll happen to the pitiful masses when the government doesn't show up with a "free bologna sandwich" to feed the starving crowds. The comments expressed by "Mr. Bolonga Sandwich" in this piece leaves me shaking my head. No one has a "right" to free food. Unbelievable.
Funny
Its funny how people that owe money don't want to pay, but when people(gov) owes them they complain if they don't receive it. We received our check and had fun with it.
Virginia & Child Support
Virginia is for lovers and then its for mothers. It's child support system is very one sided. You have no rights in VA as a father, but you are required to pay an amount that you can not argue over. Virginia only cares about the money and will do everything it can to make sure nothing gets in that way.
oxymoron
From the article:
"Harris said the stimulus payment had been like a blessing because no one expected it. People were depending on that money..."
Depending on unexpected money is just about the dumbest way to deal with personal expenses I've ever heard. Who did this guy think would pay for his bologna sandwiches? I don't believe he even understands how taxes are collected and used to pay for government programs - like food stamps!
It sounds like he thinks its all "free" money.
So shocked!
I am shocked that everyone is so against the man, because he had to receive food stamps. Everyone who gets them are not commiting fraud, he said why he got them. You people are so ignorant when it comes to these posts.
stimulus rebate explained
This year taxpayers will receive an Economic Stimulus Payment.
This is a very exciting new program that will be explained using the Q and A format:
Q. What is an Economic Stimulus Payment?
A. It is money that the federal government will send to taxpayers.
Q. Where will the government get this money?
A. By borrowing from China and the Arab countries and the debt will have to be paid back by the taxpayers..
Q. So the government is giving me back my own money?
A. Yeah! Right!.
Q. What is the purpose of this payment?
A. The plan is that you will use the money to purchase a high-definition TV set and a tank of gas, thus stimulating the economy.
Q. But isn't that stimulating the economy of China and Saudi Arabia?
A. Shut up.