If I owe money from previous tax years to the IRS and State, and I have a refund for both this year, will this delay my refund payment? Can I payoff my balance with my current refunds?

[Fern · Accepted solution]

If you have a balance due from a prior tax year, the IRS will offset this year's refund to pay off the balance due from before.  If there are funds remaining, you will receive a refund. It may delay your refund slightly.  

Most states will follow the same procedures.

[jcarey23]

Is there a way to apply any refund I am getting toward any balance due when filing the return so as to avoid a delay in processing my refund?

[lilisasa123]

I do not think so.  They will intercept this year's and u will get remaining balance.  Unless u go to an actual tax ptoffesional.  They can help with that.

[ash-marie-n724]

I do as well owe the irs from a previous years audit. My return was filed 2/11 and accepted 2/12. From the "wheres my refund" site, friday 2/24 the tracker disappeared with a message stating we are currently processing your return. As of today 2/26 the tracker is now back with an expected DD date with the difference from what my original return was determined minus my balance due with IRS of 3/2 . From this they are still  within the 21 days expectancy of issuing returns.  Hope this helps. 

[mismiller13]

I have the same situation, I owe on last years taxes. They were accepted on the 3/6 and the tracker disappeared and I now have the currently processing message but today is day 21 and I still don't have the status tracker back but I do see my balance is cleared from my online balance with the IRS. Any reason the balance would be cleared but I wouldn't see my tracker back?