Hello I owed taxes last year and am on a payment plan, will this years refund be impacted

[Melaine · Accepted solution]

Usually when a taxpayer is on a payment plan with the IRS, any refund they expect to receive would be applied to the balance owed.  However, if the balance owed is less than the refund, the difference will be sent to you.  Example:  If a taxpayer owes the IRS $3500 and their refund is $5600, the IRS will send a refund check of $2,100 with a letter of explanation as to the reason for the difference.  Attached is a FAQ the IRS answered for more information regarding this.