More than likely, Yes, the entire refund will be taken.
Certain
financial debts from your past may affect your current federal tax refund. The
law allows the use of part or all of your federal tax refund to pay other
federal or state debts that you owe. If the refund is reduced due to an
offset, you will receive a letter in the mail stating what the offset
was.
However, in the meantime, To find out if you had a FMS
offset that affected your tax refund you can call 1-800-304-3107.
See this IRS website for refund FAQ's - http://www.irs.gov/Refunds/Tax-Season-Refund-Frequently-Asked-Questions
Here
are six facts from the IRS that you should know about tax refund ‘offsets.’
- A
tax refund offset generally means the U.S. Treasury has reduced your
federal tax refund to pay for certain unpaid debts.
- The Treasury Department’s
Financial Management Service is the agency that issues tax refunds and
conducts the Treasury Offset Program.
- If you have unpaid debts,
such as overdue child support, state income tax or student loans, FMS may
apply part or all of your tax refund to pay that debt.
- You will receive a notice
from FMS if an offset occurs. The notice will include the original tax
refund amount and your offset amount. It will also include the agency
receiving the offset payment and that agency’s contact information.
- If you believe you do not owe
the debt or you want to dispute the amount taken from your refund, you
should contact the agency that received the offset amount, not the IRS or
FMS.
- If you filed a joint tax
return, you may be entitled to part or all of the refund offset. This rule
applies if your spouse is solely responsible for the debt.
