Can New York State O.T.D.A. take money for the same debt twice ?
This tax season i came to find out my wife owed back child support, from a few years ago that was incurred during her custody battle before she gained custody. What had happened was she owed $ 2,730 so they took that out of my federal tax return and also took my $ 2,660 state return for the same $ 2,730 debt. I work as a manager at a collection agency and i know the law states if we or our client took payment for larger then the debt is could cause us to be fined, sued, and or loose our license. I was wondering if this was legal and if not how I would handle a complaint.
P.s. Due to I was the sole earner for the family and the child is not my responsibility I have filed both state and federal tax forms to get back the monies though a long process with I.R.S. and state tax department so my main question just is about what O.T.D.A. did.