Question

I have a bankruptcy and tax return concern. If I filed bankruptcy last year, will I lose my refund?

Answer

No. Details about bankruptcy and tax refund issues follow:

If your refund was offset and the IRS was aware of the bankruptcy, contact:

  • Bankruptcy court — Request a referral to insolvency. This will reverse the debt offset, and your refund money will be issued with code BPI 3.
  • Agency on the offset notice or the Department of Treasury’s Bureau of Fiscal Service (BFS) — Request the offsetting agency issue a refund. You can call the BFS at 800-304-3107 or TDD 866-297-0517.

Depending on the type of return and bankruptcy you filed, the bankruptcy estate might take your refund to pay your other debts. If you have questions about this, contact the bankruptcy trustee.

Related Topics

Related Resources

IRS Letter 324C – Amended Return Incomplete for Processing

Learn more about letter 324C, why you received it, and how to handle an IRS 324C letter with help from the tax experts at H&R Block.

IRS Correspondence Examination

Need help with an IRS correspondence examination (commonly called a mail audit)? Read the IRS definition and get more insight from experts at H&R Block.

How Long Does It Take? IRS Penalty Abatement

How long penalty abatement takes depends on the type of penalty relief you’re requesting. Learn more from the tax experts at H&R Block.

IRS Revenue Agent

Get the facts from H&R Block about IRS revenue agents. If your audit letter is signed by a revenue agent, the audit is likely to be complex.