IRS took your Tax Refund for Unpaid Child Support, State Refunds, Unemployment

September 30, 2013
Written by: Fresh Start Tax

Fresh Start Tax
Yes the long arm of the Internal Revenue Service can grab your tax refund for unpaid child support, certain federal and state and unemployment compensation debts and a variety of other problems you have may have found yourself having.
This action is called the tax refund offset policy.
At some point in time you must take your this tax obligation or settle your tax debt so this does not happen.
We may be able to take care of your tax debt through the filing of an offer in compromise or a tax debt reduction.
When you are ready to deal with this contact us today for a free initial context consultation and let us get IRS off your back permanently.
Refund Offsets: For Unpaid Child Support, and Certain Federal, State and Unemployment Compensation Debts
The Department of Treasury’s Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay:

  • Past-due child support;
  • Federal agency non-tax debts;
  • State income tax obligations; or
  • Certain unemployment compensation debts owed to a state.

 
You should contact the agency with which you have a debt, to determine if your debt was submitted for a tax refund offset.
Department of Treasury’s Financial Management Service
You may call FMS at the number below for an agency address and phone number. If your debt was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt and send it to the agency you owe.
Any portion of your refund remaining after offset will be issued in a check to you or direct deposited for you.
FMS will send you a notice if an offset occurs.
The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. FMS will notify the IRS of the amount taken from your refund.
Contact the agency shown on the notice if you believe you do not owe the debt, or if you are disputing the amount taken from your refund.
If a notice is not received, contact FMS at 800-304-3107 or TDD 866-297-0517.
The available hours are Monday through Friday 7:30AM to 5:00PM CT. Contact the IRS only if your original refund amount shown on the FMS offset notice differs from the refund amount shown on your tax return.
If you filed a joint return and you are not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing Form 8379 (PDF), Injured Spouse Allocation.
You may file Form 8379 with your original joint tax return ( Form 1040 (PDF), Form 1040A (PDF), or Form 1040EZ (PDF)), with your amended joint tax return ( Form 1040X (PDF)), or by itself after you are notified of an offset.
If you file a Form 8379 with your joint return, write “INJURED SPOUSE” in the top left corner of the first page of the joint return. The IRS will process your Form 8379 before an offset occurs. If you file Form 8379 with your original or amended joint tax return, it may take 11 weeks for electronically-filed returns or 14 weeks if you file a paper return, to process your return.
If you file Form 8379 by itself, it must show both spouses’ social security numbers in the same order as they appeared on your joint income tax return. You, the “injured” spouse, must sign the form. Follow the instructions on Form 8379 carefully and be sure to attach the required forms to avoid delays.
Do not attach the previously filed joint tax return to the Form 8379. Send Form 8379 to the Service Center where you filed your original return and allow at least 8 weeks for the IRS to process your Form 8379.
We will compute the injured spouse’s share of the joint return for you. If you lived in a community property state during the tax year, we will divide the joint refund based upon state law.
Once again, at some point you must completely take care of your IRS problem were tax debt.
Contact us today to see how we can get a federal tax reduction through an offer in compromise.
 
IRS took your Tax Refund  for Unpaid Child Support, State Refunds, Unemployment
 

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