SBA EIDL GRANTS AND THE TREASURY OFFSET PROGRAM

Forum|Forum|5 years ago
May 30, 2021
7 replies
56 views

COVID-19 Tax Provisions make it clear that EIDL grants are non taxable and not included in general gross income.

The Treasury lists these payments as exempt from offset.

Why was both of my EIDL grants, Targeted Advance and Supplemental Targeted Advance, offset for a state debt ?

The creditor isn't allowing me the opportunity to dispute the offset.

Who do I need to contact to correct this issue to be issued a refund ?

Not A Product Question

Best answer by Critter-3

The first offset happened almost a month and a half ago. The second just happened May 19th.

I know what the alleged debt is and who it went to, but that is a whole nother issue that is off tax topic, but simply put its a debt.

According to federal law and my state laws of process and procedures, the collection of this debt is unlawful without a lien attached and filed...

Also before a creditor can garnish or levy any income or bank account, they must attach and file an execution lien and writ of execution.

Ultimately, they need a tax lien filed to perform tax refund offsets...

These liens must be attached before a creditor has any authority to use enforced collections against a debtor.

Without these any of these liens being filed by the creditor in the county and state of the debtor lives, the creditor has no authority to forcefully collect.

Good ... so you know what happened but how can you rectify it ? You may want to contact a Taxpayer Advocate in your area. See this IRS website for Taxpayer Advocate in your area and a toll free number - http://www.irs.gov/Advocate/Local-Taxpayer-Advocate

Critter-3

Level 15

They may have been exempt from fed or state income taxes but were some of them repayable ? You need to find out why they took the refund ... the state should send you a letter of explanation in a few weeks so you know where to start.

JohnnyKilroyAuthor

Level 2

No, these grants are not repayable. It was 2 weeks before I had to find out myself before I knew of these offsets. I received no notification of the offsets.

I have verified I owe no debts with the IRS and State Tax Commission, and I have a certified record of no lien from my state recorder of no liens.

Critter-3

Level 15

If you received less than expected then you need to take this up with the feds or state both of which should send you notification of why any of the refund was reduced. This notification can take more than 2 weeks to come in the mail. If you have issues with the grant issuers then seek local professional assistance ... you may need an attorney.