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.
Get the facts from H&R Block about the most common types of IRS penalty abatement: first-time penalty abatement and reasonable cause penalty relief.
The IRS may contact third parties to obtain and/or verify information regarding your tax account. Learn more about IRS notice LT41 from the experts at H&R Block.
Learn how to verify if your tax return has been deposited in your bank account with advice from the tax experts at H&R Block.
Read the IRS definition of IRS appeals, and get more insight from H&R Block about the two major types of IRS appeals: within the IRS and in the courts.