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3 Reasons The IRS Can Keep Your Tax Refund



3 Reasons The IRS Can Keep Your Tax Refund

When you file your income taxes and it shows that you are owed a refund, it doesn’t necessarily mean you will get the money. There are certain situations where the IRS will keep your refund.

Key Insights We Will Discuss

-The IRS will keep your refund if you or your spouse owe federal or state taxes.
-If you or your spouse owe other debt, the IRS can keep your refund.
-The IRS can keep your refund if it thinks you made an error on your return.

You Owe Federal Or State Taxes

-One reason you may not receive a refund from the IRS is if you – or your spouse – owe back taxes. The IRS will keep the refund and apply it towards the past debt.

-If your spouse accumulated an IRS debt before you were married, the agency will still keep your joint refund to pay the past taxes he or she owes.

Some steps you can take include determining how much money you owe the IRS, verifying the amount is correct, and seeing if there is a way to lower the debt. If one spouse accumulated the debt prior to marriage, the other spouse can also request part of the refund through an injured spouse claim.

You Owe Other Types Of Debt

Another reason the IRS might keep your refund is if you or your spouse owe certain types of debts, including delinquent child support, delinquent student loan debt and past unemployment compensation that was paid out in error. If you have these debts, the agency may use your refund to pay back the money owed.

If only one spouse has debt, the other spouse can file an injured spouse claim to get his or her portion of a joint refund. A tax attorney can help you determine if you qualify for this claim and how to file it.

IRS Thinks You Made an Error

-If the IRS suspects you made an error on your tax return, it can keep the refund. Some mistakes that can cause this include if a person’s name and social security number don’t match the IRS’s records.

-If the IRS notices inconsistencies in your return, the agency may update your documents and send you a notice of the change. If you dispute the changes, you can hire a tax attorney to help you navigate the process.

Executive Summary

-Owing back taxes can prevent the IRS from releasing your tax refund.
-If you or your spouse owes money in child support or student loan payments the IRS may apply your tax refund to the debt.
-If the IRS suspects you made an error on your return it may hold your tax refund

Have a question? Contact Venar Ayar.

Venar Ayar

Venar Ayar

Ayar Law’s expertise is not only in dealing with the tax code, but in favorably resolving Federal and State tax problems. We know the procedural rules inside and out, and we know how things actually work at the IRS. Feel free to call or email Venar Ayar anytime (no charge) and he’ll be happy to answer any tax law questions you might have. 248.262.3400

One thought on “3 Reasons The IRS Can Keep Your Tax Refund

  1. Avatar Roland says:

    also if they suspect identity fraud…..

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