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Thursday, March 15, 2018

WHERE’S  YOUR  REFUND?
IS IT SUBJECT TO A TREASURY OFFSET?
Our Enrolled Agents Tax Experts can resolve these tax problems for you before it’s too late!

When your income tax return is prepared and filed to the tax authorities, the stated “refund” amount reflects an “anticipated refund amount”.  Generally, this is the amount determined that you may be eligible to receive from either the IRS or State Department of Revenue.

However, various circumstances can result in the tax authority paying your refund to another agency to satisfy your debt instead of paying it to you.  The U.S. Department of the Treasury collects amounts owed to other federal or state agencies. This process is effectively named a “Treasury Offset”.     

This circumstance may occur if you, your spouse or your dependents have outstanding federal or state debts that you have not voluntarily paid or are deemed in default status. 

Some common unpaid federal or state debts that could lead to a seized income tax refund as an offset are outstanding federal or state tax debts from prior tax years, unpaid child support obligations, unpaid judgments or tickets, unpaid student loans debts and many others.

“Warning” from the seizing federal or state agency to the defaulted person is generally a single mailed notice letter to the affected person informing them of a pending “Treasury Offset”.  Generally, no subsequent notice letters are mailed. 

After notification has been issued, the U.S. Department of the Treasury Offset may begin upon the taxpayer’s next filed income tax return refund.  Treasury Offsets may remain on the taxpayer’s tax account for multiple tax years rendering any eligible refunds subject to seizure.

After a U.S. Department of the Treasury Offset occurs that transfers a seized refund, the applicable federal or state agency will mail a notification letter to the affected person reflecting an updated default account balance.

If you have a notice letter don’t delay, contact us to resolve these issues today! 

Delays can compromise your taxpayer rights!

Our tax professionals are knowledgeable experts that can take the necessary steps to protect you or your spouse from U.S. Department of the Treasury Offset.


Tax Facts Resolution Representation
South Region Center
(972) 596-1296

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