NationStates Jolt Archive

My sister has severe mental problems. She was born with them because my mother was exposed paint fumes on the job during her pregnancy. You see, my mother has been a nurse since '87, '88. I don't remember. In '91, when she ws pregnant with my younger sister, they were painting an area near where my mom worked. She couldn't do anything about it without getting that pretty pink slip of paper that grants the gift of unemployment.

Anyway, my parents set up a bank account for when they are too old to take care of her, so whoever takes care of her has some extra cash. There's no way she can hold a job or live on her own. They managed to save up around $7-8000.

That's where this gets interesting. I guess someone made an error and the IRS, for a brief period of time, thought that my parents owed money. They levied my dad's paycheck for a short while and froze a bank account. You can pretty much guess which one they froze. Yep, the one I mentioned for my handicapped sister. Anyway, after the problem was solved, the IRS sent both the bank and my dad's job each a letter explaining the whole thing. My dad gets his entire paycheck now.

Guess what? The bank denies getting anything from the IRS. Not only that. They're charging my parents FOR EARLY WITHDRAWAL from the bank account for my sister when they're the assholes who took the money out in the first place. Now, not only are we out $7-8000, but we're being billed because of it. My sister is never going to be normal. She's going to be 15 in October and she still needs help tying her shoes and brushing her hair.

Now I know why some people favor communism over free enterprise. I'd just not pay the stupid bill and hope we get sued. Who's the court going to believe? A busines run by assholes or the side with the Internal Revenue Service and the parents of a handicapped girl? Would you believe the bank or the government? Now my grandmother and mother aren't the only ones with interesting stories to tell. I learned that banks are run by greedy assholes.

Comments? *manditory "discuss" option*

Don't go to court. It's expensive even if you do win. And this is why I am slightly socialist.

Going to court won't just be for the money. It will be making a stand. It will be telling the world that no matter how mighty an institution, the little guy can prevail. Plus, my older brother is trying to become a lawyer. If he succeeds, then we won't have to worry about lawyer fees.

If you go to court, you’re in luck. The IRS is one of the most powerful federal institutions in the country. Hell, even if they neglected to mail the letter or it was lost by our fine postal service, you’ll be ok. The IRS meant to mail it so the bank should have gotten it, regardless of reality. I’d be more worried about what’s going to happen to the bank.

Going to court won't just be for the money. It will be making a stand. It will be telling the world that no matter how mighty an institution, the little guy can prevail. Plus, my older brother is trying to become a lawyer. If he succeeds, then we won't have to worry about lawyer fees.
What do you mean the little guy? I guarantee the IRS is far more powerful than any mere bank.

Well, if you are sure to win, you have 150% support from me. And without lawyer fees, then to going to court I say HECK YES! MAke a stand and get rich while doing it!

Again, 150% support from me here. Good luck!

I appreciate all on-topic and serious replies. As you can probably guess, this situation is different from winning the lottery or getting promoted from janitor to president and ceo of (indert company/corporation here). Very different.

As for little guy, I meant my parents. They are unpolitical civillians, even though one was in the military during peacetime and the other came from a military family and saw the world.

That sucks. I realize this doesn't help much now, but instead of having a savings account in their name, wouldn't it have been better to have put that money into a trust fund in your sisters name. That way it wouldn't be effected by any financial problems your parents might have down the road. If they start a new account, they may want to go that route. They definitely should see a reputable financial planner to secure your sisters future.

Other than taking the bank to court, all you can do now is view this as a learning experience and move on.

You might also want to contact your local media. Many TV stations and newspapers have consumer watch dogs. They will make your plight public and embarrass the bank into submission. Banks don't like that kind of publicity.

As for little guy, I meant my parents. They are unpolitical civillians, even though one was in the military during peacetime and the other came from a military family and saw the world.
You don't seem to understand that the fucking IRS is on your side.

Couldn't you call the IRS and explain that the bank claims to not have gotten the letter (maybe they can send out another one)? Also, try to see if you can get a copy of the letter your father's employer was sent. Once the bank has proof of the letter, they shouldn't have any choice but to reverse the charges they assessed to your parents account (IMO).

You don't seem to understand that the fucking IRS is on your side.
That's the very big guy supporting the little guy against the not as big guy. However, it remains to be seen as to whether the IRS will do more than paperwork. We all know how the US government loves paperwork.

That's the very big guy supporting the little guy against the not as big guy. However, it remains to be seen as to whether the IRS will do more than paperwork. We all know how the US government loves paperwork.
All governments love paperwork, though some love Ak-47's a bit more.
The IRS doen't stand for people defying them, which is exactly what this bank is doing, by law, even if they didn’t get the letter.

Okay, this is a bit difficult because I obviously don't know what steps your parents have already undertaken, or even how long this has all been going on. I.e. have they been fighting with the bank for weeks now to no avail or did the bank just bill them today? Because in the latter case (and it sure looks like that's how it is) I'd say you better calm down and take a deep breath and save the lawsuits for later.


1. If I understand you correctly, the bank account was not only frozen, but the money was actually taken out of it by the bank to give to the IRS, seeing how they're billing you for early withdrawal.
Now, since the IRS had made a mistake and your dad didn't owe them any money in the first place, there is simply no way that the money doesn't go back into that account.
Two things:
- the IRS is the one who got the money, so they're the ones who should have put it back. The bank, apart from being the one doing the transaction, has nothing to do with this. It's not like you owed them any money.
- I can't see why the money isn't back in the account yet. If the IRS really made a mistake and sent out letters acknowledging that mistake, and you really didn't owe them anything, the money has to go back into that account. Solve that with the IRS, not with the bank

2. The bank saying they didn't get any info from the IRS is ridiculously easy to solve. Just get the IRS to contact them again, or even just send the bank a copy of the IRS' letter(s) to your family or your dad's employer. If they say the copies are not enough (which they probably will) they're free to contact the IRS themselves.

3. The early withdrawal fees.
Legally, the bank probably has high ground here. The money was withdrawn (doesn't matter if by you or by the IRS [because it's not the bank who withdrew it, they just did the transaction for the IRS, just like they would have done for you, if you had withdrawn it yourselves]) so early wihtdrawal fees are (presumably) due.
Of course one would think that most banks would waive the fees out of common courtesy in this case, but well, sometimes people (and banks) are just assholes.
Now, I don't know how high the withdrawal fees are, but if they're high enough to hurt to pay, I would do what Texoma Land above has said: You might also want to contact your local media. Many TV stations and newspapers have consumer watch dogs. They will make your plight public and embarrass the bank into submission. Banks don't like that kind of publicity. I've seen this work before, so I would definitely try this as a kind of last resort.
Of course, you can only do this when the money *is* back in the account and the matter has been resolved, yet the bank still doesn't want to waive the fees. Which yet remains to be seen.

4. Like Texoma Land said above, your parents should definitely make the account out to your sister so it can't be touched by any future complications they might have.
I'm guessing that she can't deal with the account on her own, so they'll have to get authorization to handle the account for her. (I don't know the correct English words here, but I guess you know what I mean).


So, take a deep breath, things are hardly ever as bleak as they look in the first moment. Good luck. :)

Couldn't you call the IRS and explain that the bank claims to not have gotten the letter (maybe they can send out another one)? Also, try to see if you can get a copy of the letter your father's employer was sent. Once the bank has proof of the letter, they shouldn't have any choice but to reverse the charges they assessed to your parents account (IMO).
Yeah i was thinking that.

I am not a Capitilist or a Communist i fit in the middle I hate Corporations and root for the underdog i hate banks.



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What does your grandmother have to do with it?