To find out who offset your tax refund, wait for the notice mailed by the Bureau of the Fiscal Service (BFS) or the IRS, which identifies the agency, amount taken, and contact info. Alternatively, call the Treasury Offset Program (TOP) interactive voice response system at 800-304-3107 or use the "IRS Where's My Refund tool".
Tax Refund Offset
The debtor is notified in advance of any offset action to be taken. Individuals may call the TOP Interactive Voice Response (IVR) at 800-304-3107 to determine the contact information for the agency or state they owe.
To determine whether an offset will occur on a debt owed (other than federal tax), contact BFS's TOP call center at 800-304-3107 (800-877-8339 for TTY/TDD help).
Prevent an offset
Pay the full amount listed on the Intent to Offset Federal Payments (FTB 1102). Use the payment coupon included in the letter when you send your check or money order. To make a payment online, visit Payment options.
If you have an objection to the debt, you have the right to request a review of your objection. If you're successful, your tax refund and other federal payments will not be offset, or the amount being offset may be reduced. If you're unsuccessful, your tax refund and other federal payments will be offset.
Short Answer — Yes, the IRS Can Take Your Refund
The IRS can legally take your tax refund and apply it to unpaid tax debt or other government debts. This is called a refund offset. It usually happens automatically.
If your refund amount is different from the amount that was e-filed and accepted on your tax return, the IRS may have adjusted your refund. This is generally called an "offset" and occurs when you have a past due obligation to pay federal or state debts.
Yes, the IRS will automatically apply your refund to what you owe, even if you have a payment plan, through a process called a "refund offset," and they are often required by law to do so for back taxes and other debts like child support or other federal/state obligations. However, this isn't true for taking money directly from your bank account for unpaid bills (levies), as they must follow proper procedures first.
Depending on the type of debt you owe, examples of payments that TOP can offset include:
If you need more information on the offset, contact the Bureau of the Fiscal Service at 800-304-3107 (or TTY/TDD 866-297-0517) to find out where Treasury applied your tax refund.
To check if your federal payment (like a tax refund, Social Security, or federal salary) has been offset for a debt, call the Treasury Offset Program (TOP) at 1-800-304-3107, or contact the agency that handles your payment (like the IRS or SSA) if you got a notice, as they can tell you if your refund was reduced for debt collection, says the Bureau of the Fiscal Service and IRS.
If you owe money to a federal or state agency, the federal government may use part or all of your federal tax refund to repay the debt. This is called a tax refund offset.
If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.
The 10 Most Overlooked Tax Deductions
You generally cannot stop a tax refund offset. The IRS service center processing the return will likely not honor the request. However, the documentation submitted with the tax return can help with other interactions with the IRS. This first option presupposes that the taxpayer knows of their Federal or other debt.
Refundable Tax Offsets
The IRS can only forego amounts that would have been offset to a federal tax debt. Timing is critical. An OBR is generally only possible before the IRS applies a refund to another tax liability. Once the refund has been offset, it's too late to request an OBR.
If you don't get a notice, you'll need to call: Bureau of Fiscal Services at 800-304-3107.
Negotiating an Offer in Compromise (OIC) with the tax authorities can be a successful strategy for stopping tax refund garnishment. An agreement between the taxpayer and the Internal Revenue Service (IRS) to settle the tax liability for less than the entire amount owed is known as an offer in compromise.
If you disagree with the amount you owe or have other questions, call the EDD Benefit Overpayment Collection Section at 1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m. Pacific time, except on state holidays.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.
The nice thing about tax refunds in Canada is that there is no maximum amount you can receive. Tax refunds are individual and are based on how much you've paid in total in taxes and how much you actually owe. When you file your annual tax return in 2024, there are tax credits and deductions you can claim.