Expecting a tax refund but worried about outstanding debts? Don’t lose your hard-earned money! Sky View Tax Resolution can help you protect your refund from being offset.
If you owe money to the federal government, your tax refund may be withheld to cover the debt. This process is called a tax offset. The Treasury Offset Program (TOP), managed by the Bureau of Fiscal Service (BFS), handles these situations. Beyond federal taxes, the BFS may also use your refund to cover:
Past-due child support
Overdue spousal support
Unpaid state taxes
Delinquent student loans
Unemployment compensation debts
Other federal agency non-tax debts
Before your refund is taken, you should receive a Notice of Intent to Offset, which details the agency requesting the offset and the refund amount before and after the deduction. If you haven’t received this notice, take action immediately.
Once you receive a Notice of Intent to Offset, you usually have 60 days to act. Paying your taxes in full or filing for bankruptcy may help prevent the offset. During bankruptcy, an automatic stay may temporarily stop the IRS from taking your refund.
If your refund has already been offset, you may still recover some or all of it by filing an injured spouse claim or submitting a hardship refund request, depending on your financial situation.
The IRS may return your offset refund if keeping it would cause financial hardship. There is no official form for this request—you must contact the IRS directly and provide evidence supporting your case. Tax professionals can guide you through this process and negotiate on your behalf. Schedule a consultation today to see if you qualify for a hardship refund.
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