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Can The IRS Keep Your Tax Refund?

Were you recently entitled to a tax refund, but didn’t it receive it? The reason you didn’t receive the refund might be you owe the IRS back taxes. If you have back tax debt, the IRS has the option to seize your income tax refund. When the IRS takes your income tax refund, it goes directly toward your back tax debt. For married couples, if one spouse has unpaid back taxes, both portions of the refund are at risk. Are you wondering when the IRS will seize your tax refund to pay your back taxes? Also, are you wondering when the IRS cannot take your tax refund to pay back taxes? We have your answer. Read on to learn how and when the IRS can seize your tax refund. Also, we’ll share tax resolution tips for paying back taxes.

When can the IRS take my tax refund to pay back taxes?

There are situations in which the IRS has the legal right to take your tax refund to pay back taxes. If you owe back taxes, it could affect your refund and your spouse’s, if you’re married. In some situations, one spouse might owe back taxes, but the other spouse doesn’t believe they should be held liable. Tax resolution options exist for cases wherein one spouse or ex-spouse shouldn’t be held responsible for the other’s tax debt. One tax resolution option to consider is Innocent Spouse Relief. Before applying for any tax resolution option with the IRS, consult a tax relief professional. The experts at Platinum Tax Defenders have years of experience getting their clients out of tax debt.

Owe the IRS back taxes? They can take your refund

If you owe back taxes to the IRS, they can legally choose to apply your refund toward your tax debt. It doesn’t matter whether you’re entitled to a federal or state refund. The IRS can seize both federal and state refunds to pay back taxes. For any back taxes owed to the state, the state can seize your federal or state refund. If you owe federal back taxes, the IRS can take money from your federal or state refund.

Do you owe child support? The IRS can seize your tax refund

If you owe child support, the IRS can legally seize your tax refund. When you fall behind on child support payments, the government will take notice. The IRS can place a levy on your refund to pay your owed child support. The government may seize your refund to pay child support even after the child has turned 18. If you still owed payments from when they were under 18, your refund could be at risk.

Your Bankruptcy Trustee Seizes your Tax Refund

When you’re going through bankruptcy, you have a bankruptcy trustee. A bankruptcy trustee manages your assets, reviews your bankruptcy forms, and verifies your financial information. Your bankruptcy trustee can decide whether a potential tax refund should go toward paying off debts. If your bankruptcy trustee determines your tax refund should pay down your debts, they’ll request the IRS seize your refund. It may seem surprising that a bankruptcy trustee doesn’t need your permission to approve the seizer of your refund. However, bankruptcy trustees can request that the IRS seizes your refund.

If you don’t pay your student loans, the IRS can seize your refund

When you default on paying back student loans, the IRS can take your refund. The IRS will turn over your tax refund to the Department of Education to pay your student loan debt.

When can’t the IRS seize my tax refund?

Situations exist wherein the IRS cannot seize your income tax refund. The IRS cannot take your tax refund to satisfy your credit card debt. Also, the IRS does not have the power to seize your refund for mortgage debt that is unrelated to bankruptcy. The IRS also can’t take your refund for a collection agency if you don’t have a lien against you. If you have overdrawn checking accounts or bank fees, the IRS also cannot seize your refund.

Can the IRS hold my tax refund?

There are some cases where the IRS won’t seize your refund, but they can hold it from you. Situations wherein the IRS can hold your tax refund include:

  • You didn’t file taxes in a previous year
  • If your spouse filed an injured spouse allocation form
  • You’re currently in a payment plan for back taxes

In the above situations, the IRS can hold your return while they determine whether you should receive your refund. If you are in a position where the IRS is holding your refund, call a tax relief professional. A tax resolution professional can contact the IRS to resolve your refund hold on your behalf.

Are you worried about the IRS seizing your tax refund?

If you are worried about the IRS seizing your tax refund, there are options to help you receive your refund. However, these options generally involve paying back taxes or talking to the IRS to clear up tax issues. Dealing with the IRS can often be complicated and intimidating. For that reason, it’s beneficial to work with a tax resolution professional. If you owe back taxes and think the IRS may seize your tax return, call Platinum Tax Defenders today. Platinum’s licensed CPAs and tax attorneys will provide you with a free consultation about your tax issues. We’ll help you decide the best plan to get your tax refund.

Worried the IRS is going to seize your tax refund? Call Platinum Tax Defenders today

If you’re are afraid the IRS will seize your tax refund, talk to a tax relief specialist. A tax attorney can help you get your refund and come up with a plan to pay back taxes. The tax resolution specialist can also negotiate with the IRS on your behalf and submit any necessary paperwork. Tax debt can leave you in bad financial shape. That’s where a tax relief services company can come in handy. A tax relief specialist understands the complicated tax code, especially when your tax refund is at risk. If you’re worried the IRS may seize your tax refund, call Platinum Tax Defenders for a free consultation today.

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 Actual Client Results 
Recent Savings: $1,012,060
Client IDOwedSettlement
10665
$108,000$1,016.0
10711$127,000$100.0
10649$146,996$100.0
10671
$67,000.0$800.0
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I received a letter from the IRS and it says that I didn’t file my taxes. In order to get some assistance, I found Platinum Tax Defenders! The staff took time on the phone with me to really understand my situation also my needs. The staff was friendly and helpful. I highly recommend Platinum Tax Defenders!!!

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Martha B
Tax Relief, www.bbb.org