Problem... a debit was charged on wrong bank account from State of IL

[FTS13]

Last week a client came in saying the State of IL had debited over $1,000 from his account and he didn't owe any money to them. I was just wondering how to go about it first, can we call the State to file a dispute or should we dispute it with the bank? I know for a fact that it's not his debt that the State was trying to get, we believe that his roommate purposely gave out his account number and now the roommate is saying "it's not my issue, my account is paid off and taken care of - I didn't do anything" and doesn't want to pay my client the money. Any suggestions???

[ILLMAS]

Call IDOR first, let them know what happen and take it from there, here is their info:

IDOR also has a Business Hot Line that helps meet the needs of businesses and tax professionals. The Business Hot Line is available at 217 524-4772, Monday t

[kcjenkins]

Last week a client came in saying the State of IL had debited over $1,000 from his account and he didn't owe any money to them. I was just wondering how to go about it first, can we call the State to file a dispute or should we dispute it with the bank? I know for a fact that it's not his debt that the State was trying to get, we believe that his roommate purposely gave out his account number and now the roommate is saying "it's not my issue, my account is paid off and taken care of - I didn't do anything" and doesn't want to pay my client the money. Any suggestions???

Two issues here. One, if the bank let them draft on an account that did not have the taxpayer on the signature card, the bank is at fault and you have legal recourse against them. Two, this sounds like ID Fraud, which the IRS is very serious about, and I am guessing so are all states. So I'd certainly contact the state right away. But I'd sure talk to the bank, they know the name of the taxpayer on that draft, whether they admit it or not. If they don't respond with help right away, make a [polite] scene in the bank, raising your voice [politely] and letting everyone around you hear what the problem is. I know from experience that banks HATE that sort of thing, and will try real hard to avoid such, or cut off such scenes by helping you solve the problem.

[Jack from Ohio]

Last week a client came in saying the State of IL had debited over $1,000 from his account and he didn't owe any money to them. I was just wondering how to go about it first, can we call the State to file a dispute or should we dispute it with the bank? I know for a fact that it's not his debt that the State was trying to get, we believe that his roommate purposely gave out his account number and now the roommate is saying "it's not my issue, my account is paid off and taken care of - I didn't do anything" and doesn't want to pay my client the money. Any suggestions???

Have your client take his roommate to small claims court. Starting the procedings is not very expensive, and along with the other suggestions given here, the roommate will soon be feeling the heat. I am afraid if he were my roommate, he would need medical attention as well. Fraud on many levels here. PUSH IT!!

[FTS13]

We called IDOR and they suggested we call the bank and the police (LOL). We then called the bank and filed a dispute. They were very helpful, they are going to give back his money within 10 days. He didn't want to call the police... at least not yet.

Thank you to all!!

[Lion EA]

Depending on whether he ever wants to be around his roommate again, I'd call the bank, IL, IRS Identity Theft division, and the local police. Maybe small claims court after filing a police report. Change locks. Get a new roommate. After bank returns funds, ask them to open a new account free of charge and close the old account. Depending on relative sizes, and after the police report, a punch in the nose or slap in the face!

[Guest Taxed]

Get the cops involved!

If the roommate used an account# that does not belong to him to debit his payment that is fraud and theft.

The bank will most likely give a temporary credit until the matter is investigated and change the account#. i am sure the state of IL will come down on the roommate for submitting a fraudalent tax return.

[FTS13]

I will make sure to get the cops involved once my client allows it, he didn't want to just yet... I am upset because this individual was putting the blame on me... he was saying that he was also debited that same amount which does not make any sense whatsoever. Ugh scamartist!

[ILLMAS]

I will make sure to get the cops involved once my client allows it, he didn't want to just yet... I am upset because this individual was putting the blame on me... he was saying that he was also debited that same amount which does not make any sense whatsoever. Ugh scamartist!

Just have your client fill out a miscellaneous police report, to support his claim with the bank.

[Jack from Ohio]

I will make sure to get the cops involved once my client allows it, he didn't want to just yet... I am upset because this individual was putting the blame on me... he was saying that he was also debited that same amount which does not make any sense whatsoever. Ugh scamartist!

Easily debunked... Produce the bank account statements.

[Guest Taxed]

I will make sure to get the cops involved once my client allows it, he didn't want to just yet... I am upset because this individual was putting the blame on me... he was saying that he was also debited that same amount which does not make any sense whatsoever. Ugh scamartist!

FTS13 you need to also fire this client! Don't be surprised if he tries to hang this around your neck! Hang on to the tax return copy and also the authorization signatures.

[kcjenkins]

Depending on whether he ever wants to be around his roommate again, I'd call the bank, IL, IRS Identity Theft division, and the local police. Maybe small claims court after filing a police report. Change locks. Get a new roommate. After bank returns funds, ask them to open a new account free of charge and close the old account. Depending on relative sizes, and after the police report, a punch in the nose or slap in the face!

Good advice, except the last bit. A physical assault would put the client in the wrong. While the roommate certainly deserves it, in today's legal climate it's bad advice.

[Lion EA]

I know, and I'd be too chicken to do it, but I'd fantasize about it !! Maybe after all the legalities are done and I had my money back and the roommate (or I) had parted ways, if s/he ever showed up at my door, a good slap...

[kcjenkins]

I actually do not believe you'd ever do more than " fantasize about it'. LOL

[Cathy]

" I am upset because this individual was putting the blame on me... he was saying that he was also debited that same amount which does not make any sense whatsoever."

FTS13,

How on earth did your client feel you were to blame? You have already gone beyond your call of duty in helping the client find out what happened. If that client was mine, he'd be fired in a heartbeat....sure after this is all over, he MIGHT apologize and/or thank you for your help, however, I'd NEVER give him the chance for something similar to happen again. He doesn't deserve to have his taxes prepared by you again! It's not necessary to fire him now....just turn him down when he calls you for an appointment next year.

Take care,

Cathy

P.S. Also, the whole situation sounds "fishy". Dump him!

[Guest Taxed]

_{Unfortunately in today's get rich quick the easy way schemes we all have to be very careful. I am always suspicious of typewritten W2. Last year i caught 1 W2 for a referral that was totally bogus because the name of the company they used was one that I was familiar with (out of business now) and when challenged, they changed the story that perhaps that w2 was received in error for a prior year's work!}

_{When I do a ACH debit, I get a void check from new clients.}