I owe an outside agency 871.00 for unemployment overpayment will it cause an offset to my current return and if so how long will it be delayed?

[bellarose021617]

I filed my taxes on 2/08/2018. On 02/12/2018 I checked WMR and the bars were gone and it just says your refund is still being processed. A refund date will be updated when available...(may not be exact words). I called today and the guy from IRS says to wait a couple of more days since it have not quite been 3 weeks yet. He also said that he see's that I owe an outside agency and gave me a number to call. I called found out I owe 871.00 to unemployment for overpayment. I would like to know if this will cause an offset and if so how long will it delay the rest of my return. I also would like to know if I did not file 2016 taxes yet will that also delay my 2017 taxes?

[kerriP]

Sorry for the delay in your refund.  But it sounds like your refund is in fact being used to pay your unemployment debt.  Have you contacted the Bureau of Fiscal Service (1-800-304-3107) they conduct the offset program.  To further complicate your situation, if you have not filed your 2016 return and the IRS sees a potential tax liability, it most certainly will hold your refund.  Will you owe for your 2016 taxes? I am surprised that when you called the IRS they did not talk to you about that.

    The IRS lists the following obligations which can be collected from tax refunds:

1. federal tax
2. state income tax,
3. state unemployment compensation debts,
4. child or spousal support,
5. a federal nontax debt, such as a student loan

 I have no way of knowing or finding out when your refund will be released.  I do recommend you call the IRS again and inquire.  I also recommend you prepare and file your 2016 tax return ASAP.

I would recommend you call Bureau of the Fiscal Service at (1) 800-304-3107 or TDD 866-297-0517 to find out if your refund may be offset if you have not done so. Follow the prompts.   It will ask for the Social Security number for which the debt is attached.  For more information about refund offsets see BFS

https://ttlc.intuit.com/replies/3301770

[bellarose021617]

I did call and that's how I found out I owe 871.00. As for my 2016 taxes I actually did them I just need to send them off and no I will not owe anything. The 871.00 is not my whole refund so will I get the remainder of my refund back?

[kerriP]

I would say yes the balance of a refund that has had an offset is normally sent to a taxpayer except that you have not filed your 2016 tax return.    But I do not know if that will hold it up or not since you usually get a refund anyway.  I would not wait any longer filing your 2016 return.