No. A private creditor cannot garnish the federal government for an income tax refund. The idea that the IRS cannot be garnished is based on the federal government’s sovereign immunity stemming from Article III, Section 2 of the U.S. Constitution.
Once that refund hits an individual’s bank account it is fair game. Even though a tax refund from the IRS stems from income earned by the individual, it is not considered exempt disposable earnings.
