Ever wonder which past due debts can reduce your federal tax refund? Find out here…

The Treasury Offset Program, which is run by Bureau of the Fiscal Services (BFS), can use all or part of your federal refund to settle certain unpaid federal or state debts.

Offsets to Pay Certain Debts.  Past due federal tax debt may reduce your tax refund. The BFS may also use part or all of your tax refund to pay certain other debts such as:

  • Past-due child and parent support.
  • Federal agency non-tax debts, such as a delinquent student loan.
  • State income tax obligations.
  • Certain unemployment compensation debts owed to a state.

Notified by Mail.  The BFS will mail you a notice if it offsets any part of your refund to pay your debt. The notice will list the original refund and offset amount. It will also include the agency that received the offset payment. It will also give their contact information.

How to Dispute Offset.  If you wish to dispute the offset, you should contact the agency that received the offset payment. Do not contact the IRS.

Injured Spouse Allocation.  You may be entitled to part or all of the offset if you filed a joint tax return with your spouse. This rule applies if your spouse is solely responsible for the debt. To get your part of the refund, file Form 8379, Injured Spouse Allocation. You can view, download or print tax forms on IRS.gov/forms at any time.

Contact us should you need help or have questions.

C Fitts Tax Solutions | 141 S. Shandon St. Ste. E | Columbia, SC 29205 | (803)470-4938 | info@cfittstaxsolutions.com