Can the IRS keep your tax refunds?
YES, they can! If you owe the Internal Revenue Service
(IRS) for back taxes, the IRS will keep your current tax year refund and all
future tax year refunds until the tax debt has been satisfied. It is the
government’s right to hold refunds to satisfy any outstanding debt including
any interest and penalties associated with it.
The primary reason the IRS will keep your tax refund is due to back taxes owed, however there are other reasons why you might not receive your refund, such as:
1. State tax debt
2. Other government secured debts such as child support and student loans
3. Pending IRS audit
4. Identity theft
5. Over payment of unemployment compensation
6. Errors on your tax return
If the IRS is holding your refund as an error and you have contacted the IRS to correct this error, the IRS should normally have the issue resolved within sixty days. Once the issue has been resolved, the IRS will issue the refund to you.
At Lifeback Tax, we have worked with many taxpayers like you to resolve your tax debt and help you start receiving your entitled refunds again. Many Americans each year depend on their refunds to fund a major expense, catch up on bills, or maybe go on a family vacation. If you or someone you know needs help with resolving IRS tax debt, call today for a FREE consultation at 1-855-605-1500.