Income tax refund offset is a debt collection tool that allows the government to collect income tax refunds from individuals who owe the federal government to help repay their outstanding debt. This tool may be used for federal student loan borrowers who are in default.
What to do if the IRS offset your tax refund?
- Dispute the tax refund offset through an appeal. It must be noted that for an IRS appeal to prosper, the taxpayer should first receive a bill. For tax refund offsets, the IRS or agencies seldom send a bill to the taxpayer and often opt to send the garnishment to the IRS.
What does it mean if your refund was offset?
Did you receive a notice from the Treasury Department that your tax refund will be offset? A refund offset means that instead of getting the refund you expected, your overpaid federal income taxes will go toward an unpaid government debt.
How do I know if my tax refund will be offset?
The IRS provides a toll-free number, (800) 304-3107, to call for information about tax offsets. You can call this number, go through the automated prompts, and see if you have any offsets pending on your social security number.
Can I get my offset refund back?
If you already fully repaid the debt, you should receive your entire refund back. If the amount listed on your offset notice is incorrect, you may receive some money back depending on how much you still owe. Provide copies of checks or money orders used for payment, as well as receipts for payments made.
Why did the IRS offset my refund?
Your tax return may show you’re due a refund from the IRS. However, if you owe a federal tax debt from a prior tax year, or a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt.
How long does it take to get refund after offset?
Typically, the state child support office that submitted the noncustodial parent’s case for tax refund offset receives the funds within two to three weeks.
Will my tax refund be intercepted?
If you owe back income taxes, your refund can be taken to pay or offset the amount due. If anything is left, it will be refunded to you in the way you requested on your tax return, either by direct deposit or check.
Can you stop an offset?
You may be able to avoid offset by entering repayment during the 65-day period. Once the 65-day period ends, you still may be able to stop offset by entering into a rehabilitation agreement and making the first five of the nine required payments.
How much money do I still owe the IRS?
You can access your federal tax account through a secure login at IRS.gov/account. Once in your account, you can view the amount you owe along with details of your balance, view 18 months of payment history, access Get Transcript, and view key information from your current year tax return.
How do I find out who intercepted my tax refund?
Call the FMS at 1-800-304-3107 to find out if your refund was reduced because of an offset. Call the IRS Taxpayer Advocate Service at 1-877-777-4778 (or visit www.irs.gov/advocate) if you feel your refund was reduced in error. The service is free.
Will IRS take my refund if I owe back taxes?
If you owe back taxes, the IRS will take all your refunds to pay your tax bill, until it’s paid off. The IRS will take your refund even if you’re in a payment plan (called an installment agreement).
Will the IRS garnish my tax refund 2021?
Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt.
What is the offset number?
If you have questions regarding the offset of your federal tax refund or offset of another U.S. government-issued payment, you may phone the Treasury Offset Program Call Center at 1-800-304-3107.