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New Member
posted Jun 7, 2019 3:35:17 PM

If I messed up on my taxes a few years back, and I owe the IRS - will they also take the remaining amount from my state refund?

 I understand they will take my federal, but I think its a few hundred short of the balance, will they get the remaining balance from my state refund?

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1 Best answer
Level 3
Jun 7, 2019 3:35:19 PM

I suspect the IRS will not apply your state refund to your federal tax liability.  Once they process your latest federal tax return, they will issue you a letter stating the amount of tax, penalty, and interest due to resolve your remaining tax liability.  The unpaid tax will continue to be subject to penalty and interest until you make full restitution.

2 Replies
Level 3
Jun 7, 2019 3:35:19 PM

I suspect the IRS will not apply your state refund to your federal tax liability.  Once they process your latest federal tax return, they will issue you a letter stating the amount of tax, penalty, and interest due to resolve your remaining tax liability.  The unpaid tax will continue to be subject to penalty and interest until you make full restitution.

New Member
Jun 7, 2019 3:35:20 PM

Thank you!