Tax offset removed? Wha....?

[CarterC]

Hi All:

 

I've had student loans in default for several years now and had a Treasury Dept. tax offset lien on my tax returns.

 

In other words, over the past few years, my tax returns have gone to Uncle Sam for the loans. No prob.

 

I'm now in the early stages of a Direct Loan consolidation, but I have NOT been approved. Merely applied and have been asked for more info, which I'm providing.

 

Today, I called the Treasury Dept. automated line just to see if my tax offset is still in place.

 

It's NOT! The automated voice said: "You have no debts associated with this social security number."

 

I'm thrilled, but dubious.

 

Why would they cancel a lien if the student loans are still owed?

 

Thanks-

 

CC

[NeverQuietHere]

My tax returns and my husband's have been taken for the last 3 years as well. (even though he has no student loans.)

 

What is that phone number that you called? I am interested to see if I could possibly be in your situation as well.........

 

(i would be thrilled by the way.)

[CarterC]

What is that phone number that you called? I am interested to see if I could possibly be in your situation as well.........

 

 

800-304-3107

[Lorenzo]

Just an FYI... my wife and I got hit with a tax offset for a loan she had in default. There is a form you can fill out and send in that will allow you spouse to still receive their portion of the tax return. In our case she has not worked in the past 2 years so we will gett all of our taxes back but it takes up to 2 months.

 

Its form 8379, injured spouse form.

Edited February 9, 2007 by Lorenzo