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HELP!! The Government Took My Tax Refund

Has the IRS intercepted your tax refund?  The truth is that this happens to people every year!  Why did this happen to you, and what can you do about it?

Reasons Why Your Refund has been Offset

There can be several reasons why your refund has been has been or will be intercepted.

  1. Past-due federal tax;
  2. State income tax;
  3. State unemployment compensation debts;
  4. Child support;
  5. Spousal support; and
  6. Federal non-tax debt, like student loans.

Find Out Why MY (OUR) Tax Refund was Offset

If you are married filing a joint return, the IRS will take your refund if your spouse has any of the above mentioned past due debts! Yes-Your spouse. However, there is relief for this.  You can complete and mail an injured spouse allocation IRS Form 8379 follow this link → https://www.irs.gov/pub/irs-pdf/f8379.pd to complete the form.  Follow this link for instructions on where to mail your form →https://www.irs.gov/pub/irs-pdf/i8379.pdf. This form will inform the IRS that the debt was acquired prior to your marriage and you are entitle to your portion of the refund. 
  1. Call the IRS Federal 800-304-3107
  2. Enter yours and your spouse (If Married Filing Joint) personal information
  3. Listen to the recording informing you of your off-set reason
  4. Contact the corresponding agency

What Can I Do About an Offset? 

So many options....As I stated earlier, the IRS only offsets refunds for PAST DUE DEBTS.  If you owe an agency and have been avoiding them, it may be best to speak with them and come up with a plan to resolve your debt.  Mostly all of them are willing to work with you and come up with a payment plan.  But the first step is facing them. Past due tax debt and child support are the only exceptions.  however, I still encourage you to reach out and see what your options are. 

  1. Reach out to the agency holding the debt PRIOR to filing your 2017 return!
  2. Make Arrangements to get caught up or get on a payment plan
  3. Meet your payment arrangement obilgations until they debtor is satisfied and considers you (in compliance)
  4. Then file your return without interruption!

Once the IRS has intercepted your refund due to debt you owe, you will not get that money back. The money will be applied to your debt accordingly.  That is why it's important to bring these debts into compliance prior to filing your return. 

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