Is Your Tax Refund Denied Due to a Tax Offset?
An outstanding debt with the IRS or other federal agencies can jeopardize your tax refund. The U.S. Department of Treasury may impose a tax offset, seizing part or all of your refund to settle unpaid amounts. This means you’ll lose your refund until your debts or back taxes are fully paid.
What Triggers a Tax Offset?
Not all debts lead to tax offsets; for example, unpaid credit card bills or mortgages do not qualify. However, offsets can occur for:
- Unpaid federal taxes
- Unpaid state income taxes
- State unemployment compensation debt
- Student loan debt
- Overdue child and spouse support payments
Typically, the IRS sends a “Notice of Intent to Offset” to alert individuals with significant unpaid debts. Ignoring this notice can result in a tax offset, even if you haven’t received it due to a recent move.
How Can You Resolve a Tax Offset?
The best way to resolve a tax offset is by consulting a professional tax consultant. At United Tax Defense, we offer expertise to help clients navigate these issues.
Our Services
- Settle Back Taxes: We assist in negotiating installment payments or offers in compromise.
- Unfiled Tax Returns: We audit financial histories to identify any unclaimed tax refunds.
- Loan Consolidation: We guide clients in applying for suitable debt consolidation loans.
- Bankruptcy: For those in severe financial distress, we can discuss the possibility of filing for bankruptcy as a solution.
Let us help you relieve the ultimate burden of Tax Offset today.