Marine Corps Family Struggles After Erroneous Tax Levy Drains Savings

Marine Corps Family Struggles After Erroneous Tax Levy Drains Savings

EXCLUSIVE: Sarah Ogasian, a dedicated Marine Corps spouse, mother, and emergency room nurse, vividly recalls the heart-stopping moment when her husband, Master Sgt. Jon Ogasian, discovered their family’s savings account had been completely drained.

The Ogasian family resided in Highland, New York, while Jon was stationed at Stewart Air National Guard Base in Newburgh. They subsequently relocated to Texas, where he now serves at Naval Air Station Joint Reserve Base Fort Worth.

In an interview with Fox News Digital, Sarah shared her husband’s shocking experience. “[Jon] woke up, went to work at the military base, checked our bank accounts on his cellphone, and found it was completely empty. He wanted to vomit. As soon as the money was gone, we were left with mere pennies in our account,” she explained.

A representative from the New York State Department of Taxation and Finance informed the couple that their funds had been seized through a tax levy initiated by the state.

New York State has acknowledged that the levy was issued in error and has canceled the assessment. However, the Ogasian family remains in limbo, waiting for their funds to be restored. They also received word that a processing fee will be deducted from their refund.

“If this can happen to us, how many others have faced similar situations? How many others have had their money wrongfully taken?” Sarah Ogasian questioned.

Tax System Failures Under Scrutiny

The Ogasian family’s ordeal highlights broader concerns about the efficacy of state tax systems in safeguarding servicemembers’ rights. Specifically, they raise significant questions regarding compliance with the Servicemembers Civil Relief Act and the Military Spouses Residency Relief Act.

The Servicemembers Civil Relief Act is designed to protect active-duty military personnel from state taxes, liens, and other financial actions when their legal residence is outside the state. Practically, this means a Marine stationed in New York should not be liable for state income taxes on military earnings, provided their legal domicile is in a state like New Hampshire, which does not impose income tax.

Protections Extended to Military Families

Similarly, the Military Spouses Residency Relief Act extends these protections to military spouses, allowing them to claim the servicemember’s home state for tax purposes, even if they work in the state where they are stationed.

Capital One, the family’s banking institution, indicated it had adhered to all relevant laws and emphasized its commitment to protecting its clients under the SCRA, although it refrained from discussing the specifics of the Ogasian family’s situation.

A spokesperson for Capital One stated, “We are dedicated to both the letter and spirit of the SCRA. This involves providing benefits and protections that surpass the requirements of the SCRA in specific cases involving a Capital One loan or liability. Additionally, we comply with all applicable federal and state laws concerning levy orders.”

State Repository Issues Cause Confusion

New York flagged the Ogasian family for not paying state taxes, despite their residence in New Hampshire, as stated in Jon’s W-2s and military documents. This legal domicile exempted them from state tax under federal law.

When Sarah and Jon communicated with state officials, they were astounded to find that many were unaware of the SCRA protections. “The New York tax representative didn’t even know what the Servicemembers Civil Relief Act was. My husband had to explain it to him. That should not happen,” she recounted.

Financial Hardships Mount for the Ogasian Family

Unfortunately, the impact of the levy on the Ogasian family has been profound. Deprived of their savings, they struggle to afford back-to-school expenses for their children, including clothes, sports, and dance activities. Sarah reflected on their dire situation, saying, “We began school here in Texas, and as we are starting in the first two weeks of August, we had to tell our kids, ‘We don’t have any money right now.’ We can’t afford school clothes or new backpacks or shoes. For the first time, we had to rely on secondhand stores for clothing.”

Sarah emphasized their family’s years of service and sacrifice. During the COVID-19 pandemic, she served tirelessly as an ER nurse, while Jon completed 21 years in the Marines, including deployments overseas. “When COVID hit, I was treating patients in upstate New York, watching people die while their families could not be there with them. We were hailed as heroes then, but now it seems that New York state has forgotten our service,” she lamented.

Officials Remain Silent on the Issue

As of now, Fox News Digital reached out to Governor Kathy Hochul’s office and the state Office of the Taxpayer Rights Advocate, but did not receive any comments prior to publication.

The Ogasian family is still anxiously waiting for the return of their hard-earned savings.

Insightful Advice for Fellow Military Families

In the midst of their struggles, Sarah encouraged other military families to educate themselves about their rights. “People keep recommending that I sue the state, but I don’t want their money. I just want my savings back. The money we worked so hard for feels like it is being held hostage,” she stated. “Record-keeping is essential for military families. Ensure you know your rights, especially regarding the SCRA. I had no idea what it was before this happened; stand your ground if you feel wronged.”

In a rallying cry, she advised, “Empower yourself with knowledge and advocate for what is rightfully yours.”