Jerry Morris

[jerrybrothekid]

My nephews state tax refund ( State of Oregon ) has been taken for the payment of a hospital debt, which he is contesting. The Hospital has been contacted and he has been informed that the Hospital has a contract / agreement with the State of Oregon, that they ( The Hospital ) can collect a debt through the State by garnishing his State Tax Refund WITHOUT A COURT ORDER !

It is my understanding, that Federal Law mandates that NO Tax refund can be garnished or attached, unless such a garnishment is for Tax Debt, Child Support, Child Support Arrears or an unpaid Student Loan.

How is it, that a simple contractual agreement between a vendor, such as a Hospital can garnish ANY income, without a signed Court Order through a Court Of Law within Competent Legal Jurisdiction, simply because a contract or agreement exists between the vendor and the State ?

Reasonably assuming that the state can NOT act as a collection agency in such a case, HOW DO I HELP MY NEPHEW GET HIS MONEY BACK ?

R/S

Jerry Morris

 

[army judge]

You're mixing federal law with Oregon state law.
You can advise your nephew to pay his debts in the future to avoid his state income tax from being snatched by the money grabbers.
You can also advise him to write to his state elected officials in an effort to seek redress.
That's about all he's got left, and the odds on success, minute, as in microscopic.

 

[Betty3]

Was this a hospital operated by the state? If so, I believe in Oregon they can take your state tax return for payment of this debt.

 

[mightymoose]

Federal law applies to federal taxes, not state taxes.
As above, if it is a state hospital it can intercept state taxes. If not a state hospital it would likely have to go through the courts/collections.