topic Re: IRS levy in State tax filing

IRS levy

redskin13808 — Fri, 05 Mar 2021 04:51:25 GMT

I owe the IRS $22,000.00 for tax year 2016. Do they automatically levy my State refund this year?

Re: IRS levy

DavidD66 — Fri, 05 Mar 2021 04:59:31 GMT

Yes. It's called a Tax Offset. If you owe money because of certain delinquent debts, the IRS or the Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt.

If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.

Re: IRS levy

redskin13808 — Fri, 05 Mar 2021 05:03:35 GMT

Does it matter what state I filed the taxes in?

Re: IRS levy

SundayInSalem — Fri, 05 Mar 2021 14:34:06 GMT

The IRS cannot automatically take your refund. You were given incorrect information. You have the right to appeal.

If your state tax refund is levied, the state will issue a notice advising you of the levy. The IRS will also issue a notice, after the levy, offering you the opportunity to appeal the levy. The IRS notice will NOT be issued if you previously received a notice of intent to levy that advised you of your right to a hearing. The state and IRS notices refer you to call (800) 829-7650 or (800) 829-3903 for assistance.

The IRS can only go after refunds of states that participate in the State Income Tax Levy Program.

Federal and State Levy Programs

Re: IRS levy

fanfare — Fri, 05 Mar 2021 11:35:24 GMT

if you already owe from that far back, then all that notification and appeal process is over with, and IRS will levy your refund until it is paid off.