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Old 05-21-2008, 07:08 PM   #1 (permalink)
John
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Join Date: Aug 2004
Location: San Diego, CA
Posts: 1,795
Tax dispute - now a collections issue - legal advice?

I moved from Fairfax County, Virginia in February 2007 to San Diego. Fairfax County (like several other municipalities) has a lovely thing called Property Tax for things such as vehicles, boats, and recreational craft. That being said, I know I would be liable for a part of 2007 property taxes owed to Fairfax County.

Upon my arrival, I made appointments at the CA DMV and registered my truck in March 2007, and initiated the process for my 350Z a few weeks later. Two days afterwards, I totaled my 350Z at Buttonwillow. At that time, the lienholder for my truck (NMAC) was supposed to initiate a transfer of my electronic title from VA to CA (I had to submit a form for this). The 350Z title was "decommissioned" in late April of 2007.

Life goes on and I refinance my truck through a credit union. 5 months later, I received notice that the credit union could find no record of my title in CA, but discovered it on file in VA. Yes, red flag number one - VA was going to try and milk me for that time whereby my title was held in the state. *sigh*

Fast forward to January 2008 - I submit my tax returns, and I am owed ~$651 from the Commonwealth of Virginia. In early March, I receive a check for $124, and I think to myself - looks like they held my personal property tax liability, but in excess. I get lazy and make a note to follow up soon.

Early April arrives, and I receive a note from the County of Fairfax saying I owe them $532 in delinquent property taxes. Numbers align - but unfortunately, their property tax amount is wrong. Note to self, follow-up with them soon to get some money back. One week later I receive a notice from the Commonwealth stating "This is notify you that we have held all or part of your 2007 tax refund because of the claim below. We have no applied these funds to the claims(s)." Note to self, still need to follow up with Fairfax County to get some money back.

One week later, I get a lovely letter from a collection agency saying that I owe them $600 for fees associated with unpaid taxes. OK, now I'm pissed and motivated in a not so nice way. I speak to the collection agency the following Monday and he states to me that I have 60 days to resolve the issue (which really isn't an issue since ummm... I'm owed money). I ask what I need to do to prove to him, and he says nothing will be accepted from me, only from the client (in this case, the client being the Fairfax County).

I collect my documentation and start calling the POCs identified. Unfortunately, all are out of the office indefinitely (one for 4 weeks) - so I redirect to a general number. I explain the situation, and after much dialogue, she acknowledges that a letter couldn't explain the situation. I fax her my CA registration information for my truck, and we speak two days later. Yes John, we have been received funds from the state for these property records, and I have now adjusted your balance so that you only owed us $238 for 2007. I inquire about the collection agency and the differential of ~$300 I am owed. I am informed that the refund to me will go out in about 3 weeks and that they only update the collection agency once a month at the end of the month.

Today I come home and receive a letter from Fairfax County. A check might you ask? Nope, a delinquent notice bill for $275 and notification of legal action being initiated against me.

I've had enough and lost my patience. What is my next step here? Ask for a supervisor and demand an overnighted check and letter that acknowledges my exoneration of any fiscal liability? Contact the FTC citing the Fair Debt Collections Act?

I am now potentially facing bad credit for Fairfax County's incompetence. I know governments have chronic accounting challenges, but this is absurd. With the federal government, I am entitled to interest penalties and other legal recourse, but am not sure where my rights are with a municipality. For the record for you NoVA people - Arlington and Alexandria are 1000x more competent. I have had another issue with Fairfax in the past where they quoted me (no joke) 6 different property tax amounts for my Subaru that ranged from $260 to 680 as I stood in front of them.

Cliff notes: Municipal government continues to bill me for "unpaid taxes" for what they've collected for, submitted my info to a collection agency, initiated legal action - all for a case where they owe me money.
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