Will the IRS take my state refund to pay back taxes I owe?
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 Resources
Tax problems like IRS notices, audits and penalties should be addressed as soon as possible. Learn how to solve these common tax problems with H&R Block.
Learn more about notice CP161 and how to handle an IRS bill for unpaid taxes with help from the tax experts at H&R Block.
Learn more about late filing and payment penalties from the tax experts at H&R Block.
Will your taxes be affected if an illegal alien names you as their employer? Get your questions answered from the tax experts at H&R Block.
