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
Did you receive IRS Letter 3339C? Learn more about letter 3339C and how to handle it with help from the tax experts at H&R Block.
Get the facts about defaulted installment agreements from H&R Block, and learn how to fix the issue if you default your IRS installment agreement.
Understand the most common types of IRS business tax penalties for filing and paying late, and your possible options for requesting IRS penalty relief.
IRS Form 433-F, Collection Information Statement, is used to determine taxpayer's ability to pay the IRS. Learn more from the tax experts at H&R Block.