The Facts about Refund Offsets Did you know, the Treasury Offset Program can take all or part of your federal tax refund to pay certain federal or state debts? Here are the facts about tax refund offsets.
Bureau of the Fiscal Service The U.S. Treasury Department’s Bureau of the Fiscal Service, or BFS, runs the Treasury Offset Program.
Offsets to Pay Certain Debts The BFS may use part or all of your tax refund to pay certain debts. These debts include federal debts, such as delinquent student loans or federal tax debt, or state debts like past-due child or spousal support, state income tax debt or certain unemployment compensation debts.
Notice by Mail The BFS will mail you a notice if it offsets any part of your refund to pay a delinquent debt. The notice will list the original refund and offset amount. It will also include the agency that received the offset payment and provide the agency’s contact information.
How to Dispute an Offset If you wish to dispute the offset, you should contact the agency that received the offset payment. Only contact the IRS if your offset payment was applied to a federal tax debt.
Injured Spouse Allocation If you file a joint return with your spouse and your tax refund was offset, you may be entitled injured spouse relief. This only applies if your spouse is solely responsible for the debt. To request to receive your portion of the refund, file Form 8379, Injured Spouse Allocation. Before filing, be sure to check IRS.gov to make sure you meet eligibility requirements.
For More Details Visit www.taxdefensenetwork.com Or Call (800) 691-5390
Source: United States. Dept. of the Treasury. Internal Revenue Service. Tax Refund Offsets Pay Unpaid Debts. Washington: GPO, 2016. Web.