Posted on 06/21/2013 11:29:31 AM PDT by EXCH54FE
According to USC, Title 38, §5301 Veteran‘s disability benefits are exempt from all taxes and/or any other form of withholding. The IRS cannot touch this money and creditors cannot either.
Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary.
I am not an attorney but it sounds to me like these funds cannot be touched by creditors or the tax man. Well… that was the understanding of Kevin Lake as well but he found out that the IRS has found a way to ignore the law. This is from Kevin Lake’s column on Freedom Outpost:
A couple of months ago, when I logged into my online bank account to make sure that my VA disability check had been deposited (I am a 60% disabled veteran of the Iraq War) I saw red and a negative balance, beside which read the word “hold.”
I called my bank and was informed that the IRS had sent a letter demanding that the bank take all of the available funds out of my account on the first day of the month and then wire them to them. The bank gave me a telephone number at which to call the IRS. After being placed on hold for a very long time- long as in a biblical age- I finally spoke with an agent.
(Excerpt) Read more at freedomoutpost.com ...
You know this government is way past ‘out of control.’
This story made me sick.
All these Federal Agencies have to go. Or at minimum be pruned to pre WWII levels.
If that doesn’t happen, we are just a sad debating club on the Titanic. Nothing will change. No ‘good guy’ getting in will be able to do anything. The only platform that I’ll vote for is that the beast is euthanized.
You can’t get your benefits in cash or check, its got to go into a bank account, hence the money laundering trick. Wouldn’t make any difference if he had separate accounts for VA benefits, general income, etc. as they would seize them all and you would have to spend the time and energy trying to prove otherwise.
Had he not been retired, he would have received a non taxable check from VA.
vaudine
Sometimes the facts are not clear.
It could be that the vet in question owed back taxes on some other matter unrelated to his vet disability pay. In that case the IRS can do what they did.
But still the larger point I made just above is that there exists a much more efficient and transparent tax code. We should all study it and become expert on it.
“I called my bank and was informed that the IRS had sent a letter demanding that the bank take all of the available funds out of my account on the first day of the month and then wire them to them.”
They need a court order not a letter. The bank can be sued.
“It could be that the vet in question owed back taxes on some other matter unrelated to his vet disability pay. In that case the IRS can do what they did.”
No, they can’t.
The following is from 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.
Hack? They don’t need no hackers!
All they gotta do is show up at the bank door.............
They did not attach his disability payment, they attached his bank account. One can debate what the difference is if he only receives disability income and nothing else. But we don’t know that.
I am not defending the IRS. I am merely pointing out that we don’t know the full circumstances.
Even if it was back taxes that he owed, I still am opposed to the IRS and the Income tax.
Here is the true solution:
http://www.fairtax.org/site/PageServer?pagename=FAQs
Good point: )
***** “The IRS has lost its moral authority and should be dissolved.” *****
Acid or Alkaline solution? I heard that if you run them through Pigs first it speeds up the process.
“How many bank managers do you think would be willing to tell the IRS to go to hell, for the benefit of a customer? “
I’ll take zero for $100.
Seizing the payment after it’s deposited is disgustingly disingenuous.
***** “You know this government is way past ‘out of control.’
This story made me sick.
All these Federal Agencies have to go. Or at minimum be pruned to pre WWII levels.
If that doesn’t happen, we are just a sad debating club on the Titanic. Nothing will change. No ‘good guy’ getting in will be able to do anything. The only platform that I’ll vote for is that the beast is euthanized.” *****
Bump what you said
TT
They broke the law by stealing money. Giving it back does not negate the fact that they broke the law. They need to be indicted, tried and generally treated as they treat average Americans.
If, for the sake of argument, he sold some real estate and did not pay income tax on its gain, and he is in arrears and penalties and fees are added, then it is legal for the IRS to attach his bank account.
But all that is based on ‘If’. We simply do not know.
But I can tell you this for sure, that the IRS is manned by persons that are not always wise and smart. They are often knuckleheaded, meaning they can be belligerent and thuggish. Absolutely they have been abusive in thousands of instances.
But we must choose our fights wisely. We have to make a judgement after we have seen the facts and evidence, like a member of a jury. This story could be real or it could be someone playing the victim trying to enrage us against the IRS. We have to be careful not to lose our credibility.
The FairTax is the solution. There is still enforcement, and there is still a Tax Court but it is so much better and more transparent that it will do wonders for America.
In light of the fact that the IRS ended up being compelled to obey their own rules there is no ‘if’ in this case.
The IRS has never had moral authority. Socialist Fascism doesn’t need a moral excuse, just the compliance, of the subjects. This immoral lapse, happens everytime a suppose group of leaders, are just helping out everyone. In the history of Our Founding- who started the Whiskey Rebellion? Was it a tax man, or the rebuke of such? Out, where I live, whiskey is for drinkin’, and water is for fightin’.
Lower down we see that our VET was writing for a Tea Party publication, now the key here is that the darn congressmen and women don’t care if tea party folks get the shaft - they disagree with grass roots players 95% of the time and want them shut out of the debate!!!
lol...me too!..I find the other side to be the hard core..Wanna wrestle?....*W*
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