Question

Will the IRS take my state refund to pay back taxes I owe?

Answer

Maybe. Under the State Income Tax Levy Program, the IRS can levy (take) your state tax refund to offset back taxes, addressing any tax debt you might owe.

If this happens, the state will give you notice of the levy. The IRS will also give a notice, after the levy, offering you the opportunity to appeal the debt offset.

The IRS won’t issue a notice if you already received a notice of intent to levy that advised you of your right to a hearing.

Learn what to do if you can’t pay your taxes or if you get a notice about a tax return or account problem.

Related Topics

Related Resources

IRS Letter 1830 – Notice of Final Partnership Administrative Adjustment

Learn more about letter 1830 and how to handle an adjustment to your partnership's return with help from the tax experts at H&R Block.

Nonemployee Compensation

Understand your tax responsibilities when you receive nonemployee compensation. Read the IRS definition and get more insight from the experts at H&R Block.

IRS Letter 167C – Payment Missing; Copy of Check/Money Order/Cashier’s Check Requested

Learn more about IRS Letter 167C, why you received the letter, and what it means for you with help from the tax experts at H&R Block.

Can the IRS Get My Bank Account and Financial Information? The Short Answer: Yes.

To see IRS information about your financial accounts, order your wage and income transcript for the year from the IRS. Learn more from H&R Block.