How can I apply my 2017 tax refund to my 2016 tax penalty?

The IRS will automatically apply your current refund to a prior year tax debt.  If your refund exceeds your total balance due on all outstanding tax debt , you'll receive a refund of the amount over and above what you owe. For more information on these non-IRS refund offsets, you can call the Bureau of the Fiscal Service (BFS) at 800-304-3107 (toll-free).