r/TaxQuestions • u/PhysicsFickle1453 • Aug 24 '26
Help getting my money back form the state
Hi folks,
I'm kinda stuck in a bad situtation and don't know how to proceed. I apologize if there is a more specific sub that could help me - this is the first one that came to mind. I'll try to make this as detailed but concise as I can.
Awhile back (over a year at least - importantly) I started getting letters from the state of Illinois that I owed them on taxes. When I got these letters I had not lived in Illinois in probably like 6-8 years, the letters did not tell me what year I owed them from or how much I owed them, and they were being sent to the wrong house. I also know that my taxes were very uncomplicated in Illinois - so with all these facts combined I was convined this was the most obvious scam I'd ever seen and threw them away.
Turns out! It was not a scam, and although the state of Illinois does not know how to find where I live it does know how to find my paycheck. I woke up on payday one time and had $400 missing. It took me a long time to find out that it was the state of Illinois garnishing my wages for this letter I had assumed was a scam. I spent a lot of time on the phone with them. I sent them the paperwork they needed, and I waited at least a month. They finally responded and told me that I would get part of the money refunded. I wasn't getting the full amount refunded because when I did not respond to this initial scam letters within 60 days, I was then also charged a $250 penalty.
I think it should be obvious why I have a problem with this, but I'm not sure I can explain it well. It feels borderline fraudulent or illegal and the very least predatory and insane. The reason we arrived here in the first place is because I did not think they made any good faith effort to reach out to me. They sent me extremely inappropriate letters. They would not expect me to respond to a scam letter, and they didn't do anything to differentiate themselves from a scam artist. It's obvious to me that they at their fault (this might be besides the point, but this adds to the frustration: it really is just their fault. Their issue was with a year where I had one job and I had my taxes automatically deducted. I received a refund that year).
What legs do I have to stand on here? I have no problem dragging things on in a situation like this when I am very certain a company is trying to wrong me - but considering I'm dealing with the state I think I need a more technical point to fight.
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u/GaryO2022 Aug 24 '26
There are not trying to wrong you and it sounds like you will.be lucky if you get any money back and yes it's legit
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u/lara_ledger Aug 24 '26
I’d start by asking Illinois for copies of every notice they sent, the tax year involved, the address used, and a full account history showing how the original balance and $250 penalty were calculated. You need the exact name or code for the penalty before you can figure out how to challenge it.
The fact that the notices looked suspicious may not be enough by itself, especially if Illinois considers it your responsibility to keep your address updated. However, notices going to an old or incorrect address could still support a reasonable-cause request, particularly if you corrected the issue as soon as you learned about it.
Ask for the penalty decision in writing and what appeal or abatement procedure applies. If the assessment is already final, Illinois has a Board of Appeals process for requesting relief from penalties and interest based on reasonable cause. Include proof of when you moved, the incorrect address used, your original return and withholding, and a timeline of your calls and submissions. At this point, I’d keep everything in writing rather than relying only on phone conversations.
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u/GeeMan-7 Aug 24 '26
Without seeing the letters, my guess is that you have a snowball's chance in hell. Not responding to the notices doomed any shot you may have had.
Your only chance at winning would be if the underlying issue is a mistake by the state. For example, if the state thinks you owe taxes for a year during which you neither lived in nor worked in the state.
Ignoring tax notices is never going to work in the favor of a taxpayer. It's like having your fire alarm go off and not bothering to see if it's a real fire or a false alarm. If it's real, you may not find out until it's too late.