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kmbauer10
New Member

The day before I am to receive my refund the IRS took my monthly payment Will they adjust my refund and add in the dollars they removed but then deducted from my account?

I owed back taxes and my refund was reduced by what was owed. They also deducted my monthly payment the day before I was to receive the refund. Will they adjust my refund again before issuing, adding back in the dollars they originally removed?

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Opus 17
Level 15

The day before I am to receive my refund the IRS took my monthly payment Will they adjust my refund and add in the dollars they removed but then deducted from my account?

If you are on a payment plan from a previous tax debt, the IRS will automatically keep any new tax refund and apply it to the past debt.  This does not reduce your monthly payment amount or change your payment schedule, but will reduce the total number of remaining payments.

If you are now paid in full (or overpaid) as a result of the monthly payment plus refund, the IRS will send you a check for the difference, probably in about 3 weeks.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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3 Replies
fanfare
Level 15

The day before I am to receive my refund the IRS took my monthly payment Will they adjust my refund and add in the dollars they removed but then deducted from my account?

unlikely. I would expect a separate refund check later.
Opus 17
Level 15

The day before I am to receive my refund the IRS took my monthly payment Will they adjust my refund and add in the dollars they removed but then deducted from my account?

I can't tell if you are asking because this is going to happen or has already happened.

If you have not yet received a refund, it will be reduced by the amount you owe.  I don't know whether that will take into account a payment from the day before, but if the IRS does end up over-collecting, they will send a check for the difference.

If this has already happened, and your refund was reduced plus a payment was taken and you are now over-paid, the IRS will send a check for the overpayment.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Opus 17
Level 15

The day before I am to receive my refund the IRS took my monthly payment Will they adjust my refund and add in the dollars they removed but then deducted from my account?

If you are on a payment plan from a previous tax debt, the IRS will automatically keep any new tax refund and apply it to the past debt.  This does not reduce your monthly payment amount or change your payment schedule, but will reduce the total number of remaining payments.

If you are now paid in full (or overpaid) as a result of the monthly payment plus refund, the IRS will send you a check for the difference, probably in about 3 weeks.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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