why did attorney general take money out of my tax return

by Emily Balistreri 7 min read

Why did the government take my tax refund?

Jan 07, 2022 · Take a family with two children, ages 8 and 10: When the parents file, they'll claim a tax credit of $3,000 for the two children (representing one-half of …

What happens if I Can’t pay my taxes right away?

Yes. You were sent a notice when your case was initially submitted for federal tax refund offset. The federal government should send an offset notice to you when your stimulus rebate payment has actually been intercepted. The notice will tell you that your tax return has been applied to your child support debt and to contact the Child Support ...

Do I have to pay taxes on my attorney's fees?

Additionally, the Department is required to offset a taxpayer's refund as partial payment of any debt (s) reported by the following agencies: Certain debt collected by the Ohio Attorney General (877) 607-6400 or (800) 282-0515. While the Department of Taxation is responsible for offsetting your refund, the debt is actually owed to another ...

Can the IRS garnish my refund if I owe money?

Oct 16, 2019 · Government agencies frequently garnish federal income tax refunds since they are the most common federal payments. The TOP is the only way your refund can be garnished; private creditors such as credit card companies don’t have access to your tax refund. Moreover, only certain types of government debts are eligible for TOP.

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Why did they take money out of my tax return?

All or part of your refund may have been used (offset) to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans.Mar 11, 2022

Can the government take money from your tax return?

If you're expecting a tax refund but have concerns about creditors garnishing it, you may be worrying too much. Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt.Oct 16, 2021

Why would the Ohio attorney general offset my taxes?

Pursuant to R.C. 131.02, 5733.121, and 5747.12, all or part of a person's income tax refund may be offset to collect certified tax debt or other debt owed to the state of Ohio that has been certified as delinquent to the Office of the Ohio Attorney General ("OAG"), together with any fees, penalties and interest accrued ...

What can be garnished from tax refund?

Your federal income tax refund can typically only be garnished for federal or related government obligations. If you owed the IRS, child support back pay, or federal student loans, your federal income tax refund can potentially be garnished.Apr 28, 2017

Will IRS take my refund 2021?

Beginning with offers accepted on or after November 1, 2021, the IRS generally will not offset refunds to tax periods included on the offer after the offer acceptance date. For example, the taxpayer has an offer accepted on November 15, 2021. They file their 2021 tax return on April 15, 2022 showing a refund.Dec 9, 2021

How do I know if the IRS will take my refund?

To determine whether an offset will occur on a debt owed (other than federal tax), contact BFS's TOP call center at 800-304-3107 (800-877-8339 for TTY/TDD help).Mar 14, 2022

Can a tax refund offset be reversed?

79.3. 21(5) ("OBR request must be received and processed before the actual posting date on which the offset of the overpayment is shown (the 23C Date))." Once the offset has been made, the IRS will not reverse the offset unless a clerical error has occurred that prevented processing of the request.

Can Ohio Attorney General garnish wages?

Yes. The State of Ohio retains the right to offset any monies owed to the applicant, including federal and state tax refunds. Will the Attorney General cease garnishment, foreclosure and other collection activities while an offer is pending?

How long does it take to get tax refund after offset?

How long does it take for a tax offset to be removed? It can take up to 6-8 weeks to get a tax refund reversed after it's been offset for student loan debt. However, a tax refund offset reversal can take up to six months for a jointly filed return.Feb 21, 2022

How do I know if I owe the IRS?

You can access your federal tax account through a secure login at IRS.gov/account. Once in your account, you can view the amount you owe along with details of your balance, view 18 months of payment history, access Get Transcript, and view key information from your current year tax return.

Are they garnishing tax returns 2020?

First, it's important to note that, due to the COVID-19 pandemic, the government has halted tax refund garnishment on student loans dating retroactively from March 13, 2020. This action remains in effect until January 31, 2022.Sep 15, 2021

Can a garnishment take your stimulus check?

$1,400 stimulus checks can be garnished for unpaid debts. Some states are working to prevent that. If you have unpaid private debts that are subject to a court order, your $1,400 stimulus check could be garnished.Apr 13, 2021

What is the tax offset in Texas?

In Texas, federal tax offsets are applied first to assigned arrears, or arrears owned by the state, and then to arrearages owed to the family. If there is money owed to the state in your case, the intercept stimulus payments up to the amount owed to the state will be retained by the state.

Do you have to take action if you file an injured spouse claim?

If you filed an injured spouse claim with your return and are impacted by this issue, you do not need to take any action. The injured spouse will receive their unpaid half of the total payment when the issue is resolved.

Will stimulus checks be garnished?

Under the CARES Act, your 1st stimulus payment (approved April 2020) could be garnished, but the rule was changed for the 2nd and 3rd payments.

What happens if your refund is greater than the total outstanding debt?

If your refund is greater than the total outstanding debt, it will be applied to the debt and you will receive the balance. Otherwise, your entire refund will be applied in partial satisfaction of the debt.

How to contact the Department of Taxation?

Taxpayers with additional questions on this subject may contact the Department of Taxation by email or by calling 1-800-282-1780 (1-800-750-0750 for persons who use text telephones (TTYs) or adaptive telephone equipment). NLS, NLS Worksheet.

What is the phone number for Ohio tax debt?

Ohio Attorney General's Office. Certain debt collected by the Ohio Attorney General (877) 607-6400 or (800) 282-0515. While the Department of Taxation is responsible for offsetting your refund, the debt is actually owed to another agency.

How much do you owe on a Stafford loan?

You have $3,000 in past-due Stafford loan payments. You owe $2,000 in past-due child support. The state is eligible to take $2,000 for your past-due child support, and the Department of Education can take the remaining $3,000 to pay for your past-due Stafford loan payments.

What is the Treasury Offset Program?

The Treasury Offset Program (TOP) is administered by the United States Department of Treasury’s Financial Management Service (FMS). It allows federal and state government agencies to collect outstanding debts owed to them by garnishing, or offsetting, your debt with your tax refund.

Can you get a refund if you overpay child support?

If you overpay your income taxes and have an amount eligible for a refund, the state agency that governs your child support order has first claim to that refund if your support payments are unpaid. The state can continue to garnish tax refunds each year until all child support payment obligations are satisfied.

Can a government garnish your tax refund?

Government agencies frequently garnish federal income tax refunds since they are the most common federal payments. The TOP is the only way your refund can be garnished; private creditors such as credit card companies don’t have access to your tax refund. Moreover, only certain types of government debts are eligible for TOP.

Can a tax refund be garnished?

If you’re expecting a tax refund but have concerns about creditors garnishing it, you may be worrying too much. Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt. However, once you deposit the refund into your bank account, these rules no longer apply.

Can you garnish your federal tax refund?

Before any other federal or state agency can garnish your tax refund, you must be current on your federal income tax payments. This is because the outstanding taxes you owe to the IRS must always be paid first.

Can you garnish your federal unemployment check?

But, if you’re required to return unemployment compensation payments, or you have outstanding state income tax debts, your federal refund can be garnished to repay these obligations as well.

Who collects debt in Ohio?

The Ohio Attorney General's Office (AGO) has the authority by law to collect debt owed to the state. The Collections Enforcement Section is responsible for collecting outstanding debt owed to the State of Ohio for state agencies, institutions, boards, commissions, public university and hospitals, and local government entities.

What is the phone number for AGO collections?

Additionally, you can access an on-line payment system 24/7 or contact Collections Enforcement Monday through Friday 8:00 a.m. to 5:00 p.m. at 888-301-8885. If visiting the AGO Collections Enforcement section in Columbus, Cincinnati, Cleveland, Toledo or Youngstown, valid photo identification is required to be able to access the floor.

What happens if you owe back taxes?

You Owe Federal Income Taxes. If you owe back income taxes, your refund can be taken to pay or offset the amount due. If anything is left, it will be refunded to you in the way you requested on your tax return, either by direct deposit or check.

Why is the IRS snatching my tax refund?

6 Reasons the IRS Can Seize Your Tax Refund. All six reasons are related to personal debt that a taxpayer has failed to repay on schedule. The Treasury Department also can garnish your Social Security or Social Security Disability Insurance (SSDI) benefits to collect back debts.

What happens when a parent is delinquent in paying child support?

When a parent is delinquent in paying court-ordered child support, the state’s child-support agency can request that the Treasury Department withhold money from the person's tax refund to cover the back payments.

What happens if you collect more unemployment than you were entitled to receive?

If your state believes you collected more in unemployment compensation than you were entitled to receive, either due to outright fraud or to a failure to properly report your earnings, it can ask the U.S. Treasury to offset your tax refund by the amount in dispute. 2 

Why is my tax refund delayed?

If you're still waiting for your federal income tax refund this year, here's one reason it might be delayed: the government might have seized it. The same federal agency that issues tax refunds, the U.S. Department of the Treasury, also has the authority to hold back all or part of your refund to repay debts that you owe.

Does the Treasury Department have to send you advance notice of your intention?

In this case, the Treasury Department is required to send you advance notice of its intention and to provide an opportunity for you to challenge the claim or pay it off before your refund is withheld. By the way, your state also is authorized to withhold money from your state tax refund for this purpose.

Can you garnish Social Security withholding?

Your Social Security or Social Security Disability Insurance (SSDI) benefits can be garnished (that is, partially withheld) in some instances.

What happens if you don't pay your taxes?

2. You owe back taxes. If you owe back taxes, the IRS will take all your refunds to pay your tax bill, until it’s paid off. The IRS will take your refund even if you’re in a payment plan (called an installment agreement). But if you can’t pay your taxes right away, it’s always best to get into an IRS payment agreement to minimize penalties ...

Why is my tax refund being held?

There are two big “tax account” reasons the IRS will hold your refund: The IRS suspects you’ve been the victim of tax identity theft. This may mean you’ll need to contact the IRS and prove your identity before you’ll get your refund. There’s a discrepancy related to your dependent.

What happens if you claim erroneous deductions?

If the IRS thinks you claimed erroneous deductions or credits, the IRS can hold your refund. In this case, the IRS will audit you to figure out whether your return is accurate. If you prove to the IRS that you correctly took the deductions and/or credits, the IRS will issue your refund or corrected refund. The IRS can freeze your refund ...

What does it mean when the IRS takes your refund?

When the IRS takes or holds your refund, it’s a sign that you’re not in good standing with our nation’s tax collector. The IRS can take or hold your refund in any of these situations. 1. The IRS is questioning the accuracy of your tax return.

How long do you have to file an amended tax return?

In that case, if you don’t think the change was correct, you have 60 days to prove your case to the IRS and ask for a reversal. After 60 days , you’d need to file an amended return to reverse any errors and get your refund back. If the IRS thinks you claimed erroneous deductions or credits, the IRS can hold your refund.

How long does it take for the IRS to release your refund?

Once you’ve cleared up your account issue, the IRS will usually release your refund within a few weeks. 5. You owe other debts, like student loans, back child support, outstanding unemployment compensation repayments, or state taxes. The IRS collects some other types of debts by taking your refund.

Can the IRS hold your refund?

The IRS can hold your current-year refund if it thinks you made an error on your current-year return, or if the IRS is auditing you or finds a discrepancy on a filed return from the past. If the IRS thinks you made an error on your return, the IRS can change your refund.

Who withholds federal tax refunds?

Any such withholding is done by the U.S. Treasury Department's Financial Management Service. Congress has authorized the U.S. Department of Treasury to manage the federal Treasury Offset Program. This program allows the Department of Treasury to withhold all or part of your federal tax refund to pay money you owe for state and federal taxes, ...

What happens if I owe court fees?

If I Owe Court Fees, Will They Take My Tax Return? If you fail to pay court fees that you owe to a court for a trial you participated in, or for any other reason, the court may be able to appeal to your state tax commission requesting them to withhold your tax refund check. It depends on whether or not your state has passed a law allowing ...

What is tax intercept?

Many states now have tax intercept programs that allow the court to go directly to the state tax commission and request that your tax refund check be withheld to pay for any court costs you owe that are in arrears. For example, North Dakota allows the courts to take your state tax refund if you are behind on your court fees ...

Can California courts take your state tax return?

California courts can take your state tax return and any state lottery winnings you have won to pay for late court fees. You will need to check with your state to see if they have a tax intercept program if you are concerned about them taking your refund. 00:00. 00:04 08:24. GO LIVE.

Can you appeal a tax refund if you don't pay court fees?

If you fail to pay court fees that you owe to a court for a trial you participated in, or for any other reason, the court may be able to appeal to your state tax commission requesting them to withhold your tax refund check. It depends on whether or not your state has passed a law allowing the courts to intercept your refund check.

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