Case: Improper Student Loan Offset Collection Dismissed (S.D.N.Y.)

A taxpayer alleging improper withholding of amounts from his tax refund payments as offset for student loan debt failed to properly serve the IRS and other public and private entities involved in the matter, a district court held adopting a U.S. magistrate judge’s report and recommendation. Taxpayer, who has filed two opposition briefs styled as motions for summary judgment, denies that he had defaulted upon his obligations and further alleged that the deductions breached the terms of his promissory notes. Taxpayer financed his civil engineering degree studies at least in part through loans obtained from the Student Loan Marketing Association. ...