Why is the government holding my tax refund?
There are many reasons why the IRS may be holding your refund. You have unfiled or missing tax returns for prior tax years. The check was held or returned due to a problem with the name or address. Your refund was applied to a debt you owe to the IRS or another federal or state agency.
Who can keep your federal tax refund?
Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt.
Is the government offsetting tax refunds?
The IRS makes offsets for past due federal taxes. All other offsets are handled by the Treasury Department’s Bureau of the Fiscal Service (BFS), previously known as the Financial Management Service (FMS). For federal tax offsets, you’ll get an IRS notice. For all other offsets, the notice will come from BFS.
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How does the federal government use your refund?
If you owe money to a federal or state agency, the federal government may use part or all your federal tax refund to repay the debt. This is called a tax refund offset. How the Treasury Offset Program Works
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Can a federal tax refund be seized by the IRS?
The IRS can seize some or all of your refund if you owe federal or state back taxes. It also can seize your refund if you default on child support or student loan debts. If you think a mistake has been made you can contact the IRS. There are six reasons the IRS can seize your refund. Here’s what they are, and what you can do about it.
Can a federal agency hold back your tax refund?
The same federal agency that issues tax refunds, the U.S. Department of the Treasury, also has the authority to hold back all or part of your refund to repay debts that you may owe. This is done by the department’s Bureau of the Fiscal Service. In bureaucratese, it is known as an “offset.” 1
What to do if you do not get your federal tax refund?
If you were expecting a federal tax refund and did not receive it, check the IRS’ Where’s My Refund page. You’ll need to enter your Social Security number, filing status, and the exact whole dollar amount of your refund. You may be prompted to change your address online. You can also call the IRS to check on the status of your refund.
