Could the Federal Government Garnish My Tax Refund?

Are you looking forward to receiving a tax refund this year? On January 29, the IRS will begin accepting tax returns. However, you should be aware that your tax refund could be offset by the Department of the Treasury or the IRS for certain kinds of debts. Your tax refund will not be offset to satisfy private debts. The Department of the Treasury’s Bureau of Fiscal Service (BFS) or the IRS could offset your tax return for debts that include: Defaulted student loans: The BFS could offset your tax refund if you have defaulted on any type of federal student loan. FFEL and Direct loans are in default after at least 270 days of nonpayment. You could choose several options for getting out of default to prevent a tax refund offset. Unpaid child support: Your tax refund could be offset if you have failed to pay court-ordered child support. State child support agencies report parents who are delinquent on child support payments to the BFS. Unpaid federal or state income taxes: The…

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