It may. Unpaid state income tax is one of the reasons that your federal refund may be decreased or taken. Generally, you'll get a letter when they do it.
- Contact the BFS's TOP call center at 800-304-3107 (or TTY/TDD 866-297-0517), Monday through Friday 7:30 a.m. to 5 p.m. CST to see if your refund may be changed.
A refund offset is when an IRS refund is reduced or intercepted to pay off delinquent debt, such as past-due child support, outstanding student loans, or unpaid state income tax.
- You'll get an explanatory letter from the Bureau of the Fiscal Service if your refund is offset. The remainder of your refund will be processed as usual; an offset shouldn't delay it, unless of course your entire refund was applied to your debt.
- More info about refund offsets, including contact info and the appeals process, is available in IRS Tax Topic 203.
