Category:

Collections

Proposed Legislation:

Allow private individuals and small companies the ability to garnish / IRS tax refunds.

Current law / background

If a person or small business is owed money and the debtor refuses or is unable to pay, the typical path that is followed is that the person owed money would take the person who owes the money to court.

If judgment is granted to the person who is owed the money, it is now up to the person to collect on the judgment.

Often times, this requires that the judgment holder has to locate the debtor's place of employment in an attempt to garnish wages… As some of you may know this can be a very difficult process If the debtor is hard to locate or switches jobs as soon as the garnishment is placed.

Currently, if a person owes the government or state entity monies his or her IRS refund checks can be garnished / seized.

We propose legislation that would allow people and small businesses to collect on judgments in the same manner that the federal government and/or state entities can… That is putting a levy or garnishment on IRS tax refunds.

Reason for change:

Make it easier for people / small businesses to collect on judgments / monies that are owed to them.

Notes / benefits:

Promote social responsibility. Also, if a charge, say $50 is required to do the IRS levy / garnishment , then the national debt can be paid down little by little, as well (of course the $50 charge can be added to the debtor's total of monies owed to further promote social responsibility),

Questions? Comments? Concerns?