Yes, if you have an unpaid tax liability for the state of
Alabama, they may collect it from your federal refund.
An
offset is when the federal tax refund you would have received is used to pay
all or a portion of a state income tax debt you owe. If the full amount owed is
not collected in one year, they may offset future federal payments to satisfy
your tax debt.
The
Alabama Department of Revenue may place a debt in the Treasury Offset
Program. In this program the taxpayer’s federal income tax refund may be
forwarded to the Department to satisfy all or part of the debt due the
state. Please contact (334) 353-0775 for further
information regarding the Treasury Offset Program.
For
more information: Alabama
Department of Revenue Collection Services
