… And the financial hits just keep coming!

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When I checked my email this morning, I saw a notice this morning that I have US Mail. Unfortunately, it was from the department of Revenue, City of Philadelphia for unpaid wage taxes. Before someone gets their arses in the air, let me explain: I used to maintain all the documentation, as a contractor employee, for the GPS program office for Naval Research and Development Research, Development Testing and Engineering Division Detachment Warminster, PA (NRaD shared the same facilities with the Naval Air Warfare Center Aircraft Division Warminster,PA), My employer only employed 3 people to maintain all this documentation. The employees (myself, and 2 other people were W-2 employees, rather than 1099 employees (regular full time employees versus independent contractors). All of us employees lived in the city of Philadelphia, thus subject to Philadelphia wage tax, which, at the time was 4.5%. Until someone at NRaD reported the company, our employer never deducted the wage tax for City of Philadelphia residents. He never paid the back taxes owed to the city. The Base Realignment and Closure Commission Transferred NRaD back to its home operations in San Diego,CA and closed the Naval Air Warfare Center Warminster in 1994.

In today’s mail, I received a bill from the city of Philadelphia for approximately $2300.00 for back taxes. From what research I did, the statute of limitation for collecting back taxes is 6 years in Pennsylvania. The last statement lists a date of 12/31/1994. I’d send this to my attorney, except he is not admitted to the bar in Philadelphia, and Tax law is not his specialty. I did call a law firm in suburban Philadelphia, but they bf will not take my case because I do. It owe enough in back taxes. I’d go to Legal Aid Here in Central PA, except I’ve a funny feeling I would not be accepted, due to this case is with the City of Philadelphia (aka the city of shove it up yer f!cking ass!)

Feign ignorance while asking the City of Philadelphia for proof of claim, which should be more than "Because we said so".  Make THEM prove their claim.

I can possibly get out of this mess by quoting Pa. Statute of limitation for unpaid tax debt. Statute of limitation is 6 years. The last information that they provided with this letter comes from 31 December, 1994. When I called a tax attorney in the suburban area, they refused to take the case, stating the monetary value was too small to implement a suit. I just need to find an attorney in Philadelphia that will actually take the case, preferably pro bono.

Zombie Debt

Zombie debt is debt that has fallen off your credit report but, for various reasons, someone is still trying to collect. Zombie debt has often been long forgotten and has probably been written off as uncollectible. But zombie debt can rise from the grave if a debt collector attempts to collect on it all over again, even when the debt is too old to legally pursue. The original creditor will most likely have given up on the debt and sold it to a debt collection agency. These debt collectors can be quite unscrupulous and often make harassing and threatening phone calls.

The statute of limitations on how long a lender can attempt to collect on a debt is three-to-six years in most states and even shorter in some. While the debt is still considered valid even after the statute of limitations has passed, you are not legally required to pay it. However, the companies that buy uncollectible debts are playing a numbers game. They only need a few people to repay their debts to be profitable.

Those on the receiving end of these efforts need to be careful. There is no benefit in paying a debt that is beyond the statute of limitations because paying anything will restart the statute of limitations, put the debt back on your credit report, and enable the debt collector to take you to court.

Debtors can protect themselves from harassment under the Fair Debt Collection Practices Act (FDCPA). This particular law limits the behavior and actions of third-party debt collectors and restricts the means and methods by which they can contact debtors, as well as the time of day and number of times contact can be made.

The important thing is not to spend any time on the phone with the debt collector. Ask for their address and send them a certified letter within 35 days of contact. Dispute that you owe the debt and ask them to prove that you owe it.

If you continue to be contacted by the debt collection agency, write them another letter and inform them that they cannot contact you unless it is by writing or if they are going to sue you. If the debt is beyond the statute of limitations the collector will probably go away.

Source:  This Investopedia Article 

I had to hire a lawyer to write a debt collector a letter explaining why I did not owe anything on the debt.  They then called my employer, who was only too happy to have their on-site lawyers talk to them. The collector has not bothered me ever since.

Fnord's advice makes sense.

Worst case/next step, if they do sue you for the money (unlikely, too late - and bring that to their attention if they sue and they'd likely just pull the plug.) then you don't Need a lawyer (I don't think it's a legal requirement anywhere with our similar systems of law) - you can just represent yourself for free and shouldn't have any major issues considering your case and argument are pretty cut & dry. It's 29 years passed the State statute of limitations to collect such debts if they were ever in fact owing, so, this case should be thrown out. Judge passes judgement, the end.

Tell them to swivel!

Seriously though, as other people have said, trying to collect a 1994 debt is ridiculous.

Don't fear the debt collector in this case.