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 2194 – Alternative Minimum Tax Proposal Letter

The IRS thinks you may owe Alternative Minimum Tax (AMT). Learn more about IRS letter 2194 from the tax experts at H&R Block.

Top Four Reasons to File an Amended Return

Need help deciding if you need to file an amended return (IRS Form 1040X)? Get the facts from the tax experts at H&R Block.

6 Ways to Maximize Your Refund

Think it's too late to make a difference on this year's tax return? Think again! Learn how to maximize tax deductions and increase your refund with H&R Block.

What Is Form 1099-G?

If you’ve received unemployment compensation or a state tax refund, you’ll receive Form 1099-G. Learn more about Form 1099-G and how it affects your taxes.