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DMV can use IRS to collect registration fees?

Posted: Tue Sep 07, 2010 6:31 am
by YAAFP
Sounds like something is being left out of these IRS horror stories. The basic claim (from several people) is the IRS is freezing their bank accounts on request of the (California) DMV. Are these guys correct?


http://www.thumpertalk.com/forum/showpo ... ostcount=9
In California. The DMV contracts with the IRS to attack Bank Accounts. We do not call them the Gestapo here for nothing. In the past the IRS would FREEZE ALL ACCOUNTS though the IRS for a late Registration. When I went into the DMV about this issue the lady at the desk said I could file the paperwork to dispute the issue but I would lose. They then put a scrap/non op on the file after they got my registration fees and penalties.
http://www.thumpertalk.com/forum/showpo ... stcount=10
In 1997 I sold a Jeep for $5,000.00 cash. The guy never took care of the paperwork. Two years later I was out to lunch with Clients. I went to pay and was informed my Debit Cards would not work. I do not use Credit Cards.
I called the Bank and they said the IRS had locked down ALL 4 of my accounts.
I went in to see what was up after the embarrassment off the lunch hour.
I found out $18,000.00 Dollars had been locked down by the IRS for the CA DMV over $242.00 Dollars owed on this Registration. I went to the DMV and they did have the sales info. we sent in and my accounts were unlocked.

Remember, It is NOT your money. The Government just let's you use what is left over from what they did not steal. If they need it bad enough they will just go in and take it.
http://www.thumpertalk.com/forum/showpo ... stcount=13
I sold a bike awhile back. Sent in the release of liability, but DMV must have lost it. About two years later I got a registration renewal. They made me send in a new release of liability. A few months afterwards I got a couple of notices explaining that my wages could be garnished if I didn't pay for the reg. After the 3rd time, DMV finally "got" my release of liability. The government will try to steal your money anyway that they can.
I

Re: DMV can use IRS to collect registration fees?

Posted: Tue Sep 07, 2010 10:18 am
by Pottapaug1938
That would not happen in Massachusetts, where the Registry of Motor Vehicles has no power to get anyone's accounts locked down. I suspect that it can't happen in California either, and that this story has less than a few grains of truth in it.

My wife works for the RMV here; and almost every day she comes home with horror stories about people who don't come in with proper paperwork, etc. One common horror story is the one where people have unpaid tax liabilities and can't renew a license or registration, which in the (small) minds of some means that the freeze on bank accounts put in place by the tax authorities, for the worst of these, is somehow the RMV's fault.

Re: DMV can use IRS to collect registration fees?

Posted: Tue Sep 07, 2010 3:38 pm
by LaVidaRoja
IIRC, IRC 6103 allows exchanges of information with State TAXING agencies. Is the DMV considered a taxing agency? I have to wonder if it isn't the CA State Franchise Tax Board that is involved in this. From long experience, many people do not understand that the State Income Tax is NOT the same as the Federal.

Re: DMV can use IRS to collect registration fees?

Posted: Tue Sep 07, 2010 4:07 pm
by The Observer
Urban myths. The IRS cannot and will not collect debts for state agencies other than Child Support Orders (IRC 6305, based on state court and are in arrears). Even in those cases the debts have to be assessed by the IRS and transferred to the IRS for collection; the IRS will not act to "freeze" accounts solely for the purpose of forcing the debtor to work with the state taxing agency.

I agree with LaVidaRoja that this is a case where the IRS is being confused with or deliberately substituted for the state taxing agency.

Re: DMV can use IRS to collect registration fees?

Posted: Tue Sep 07, 2010 5:32 pm
by YAAFP
LaVidaRoja wrote:... I have to wonder if it isn't the CA State Franchise Tax Board that is involved in this. ...
I didn't think about that. I'll have to do some checking.

Re: DMV can use IRS to collect registration fees?

Posted: Wed Sep 08, 2010 3:31 am
by Judge Roy Bean
Clearly, someone is jurisdictionally confused and more than happy to spread misinformation.

It's the kind of thing that helps perpetuate the paytriot myths.

Re: DMV can use IRS to collect registration fees?

Posted: Wed Sep 08, 2010 2:34 pm
by bmielke
Chances are if you owe the DMV a lot of money you owe everyone a lot of money. Typically registration isn't that expensive to not be able to pay it likely means you are not able to pay a lot of things.

Re: DMV can use IRS to collect registration fees?

Posted: Thu Oct 21, 2010 6:51 am
by peterparker1
Hello guys..
Guys..thank you for sharing...
I waiting some more posts from you...
God bless you all...

Re: DMV can use IRS to collect registration fees?

Posted: Thu Oct 21, 2010 2:36 pm
by bmielke
peterparker1 wrote:Hello guys..
Guys..thank you for sharing...
I waiting some more posts from you...
God bless you all...
[redacted same link that Nicole53 put in, what is the use of a background colored spam link?]
Hey spidey around these parts we don't like spammers.

Re: DMV can use IRS to collect registration fees?

Posted: Thu Oct 21, 2010 4:43 pm
by Brandybuck
In California the DMV could care less if you pay a fee... if you don't have a car. The registration fee is not an obligation. You can take the renewal letter and shred it if you want. That may land you in trouble with the police if you get caught driving, but the DMV is not going to check up on you.

Not paying the fine the DMV has imposed because you drove an unregistered car, THAT is a different story. And that is probably what the original story is about. I bet some guy got slapped for not registering his clunker, and he's twisting the story to make it sound like he's innocent.

Re: DMV can use IRS to collect registration fees?

Posted: Sat Oct 23, 2010 11:58 am
by wserra
bmielke wrote:what is the use of a background colored spam link?
Eyes may not see them, but search engines do.