Has Your Tax Refund Been Denied Due to a Tax Offset?

Unresolved debts with the IRS or other federal agencies and creditors can jeopardize your tax refund. The US Department of Treasury may initiate a tax offset against individuals or organizations with outstanding taxes or debts. 

When a tax offset occurs, your tax refund may be fully or partially withheld to offset the unpaid amount. What’s concerning is that you’ll forfeit tax refunds until your debts or back taxes are completely paid off.

Has Your Tax Refund Been Denied Because of a Tax Offset?

Fortunately, not all types of debts result in tax offsets. Debts like unpaid credit card bills or mortgages typically do not trigger tax offset actions. However, tax offsets may be imposed in the following scenarios.
  • Unsettled Federal Tax Obligations
  • Unsettled State Income Tax Obligations
  • Outstanding State Unemployment Compensation Debt
  • Unpaid Student Loan Debt
  • Delinquent Spouse and Child Support Payments

The IRS typically sends a “Notice of Intent to Offset” to notify individuals and organizations with significant unpaid taxes or federal debts. Ignoring this notice can result in a tax offset being imposed shortly. Additionally, a tax offset may still occur if you have not received the notice due to recent relocation.

How to Resolve a Tax Offset:

To resolve a tax offset, the optimal approach is to enlist the help of a professional tax consultant and take necessary steps to address back taxes or outstanding federal debts. At City Tax, we offer professional assistance to our clients. Our team is equipped with the expertise and experience to help clients navigate tax offsets effectively.

How Can We Help?

City Tax can assist in preventing tax offsets by assessing your financial situation and providing tailored recommendations to clients.

Resolve Back Taxes: We assist individuals in settling unpaid taxes by appealing for installment payments or considerations.

Address Unfiled Tax Returns: Unclaimed tax refunds from unfiled returns can help settle unpaid taxes. Our team thoroughly reviews your financial history to identify unfiled tax returns.

Debt Consolidation: Applying for a debt consolidation loan may help settle federal debts and student loans in certain cases. Consult us to explore the most suitable debt consolidation options.

Bankruptcy Options: Individuals facing severe financial hardship may consider filing for bankruptcy to avoid tax offsets. Consult with us to determine if bankruptcy is the appropriate solution for your situation.

City Tax is dedicated to resolving tax offset concerns. Renowned for excellence in resolving diverse tax disputes, our company stands ready to assist you.