I've Not Received My Tax Refund?

Almost 123 million taxpayers think the best part of filing a tax return is receiving that much awated refund. But what happens if you think you should be getting a refund and don't? Can the IRS really keep or hold your refund?

Yes! The IRS can, and frequently does, keep refunds that many taxpayers thought they would be getting back. The IRS calls this a refund offset. Many individuals are left wondering where their refund went. Below is a list of reasons that the IRS can keep a refund. However, keep in mind that under most circumstances, you can only claim a refund for three years after the tax was paid or withheld from your wages.

• You owe back taxes: If you have an outstanding liability to the IRS (you owe tax you have not paid), they will apply your refunds directly to that debt. If you are currently in an Installment Agreement with the IRS or they have determined your accounts to be Currently Not Collectible, they will keep your refund and apply it to your balance. If you have an Offer in Compromise (OIC) accepted, the IRS will keep your refund for the year in which they accepted the Offer.
• Your spouse owes back taxes: If you file a joint return and are due a refund, but your spouse has an unpaid debt with the IRS, the IRS will automatically apply all of the refund to that debt. In these situations, the non-liable spouse can file an Injured Spouse claim, in order to recoup their part of the refund. To do this, an individual must complete Form 8379, Injured Spouse Allocation.
• You have an unpaid liability that falls under the Treasury Offset Program: Such as having outstanding child support payments, other federal non-tax debt (such as a student loan), or a state tax debt, the IRS will apply your refund towards those liabilities.

Income Tax Owed