Your question is a little inconsistent. The court can take your Federal income tax refund, but the IRS really cannot. The "house taxes" you refer to are ad valorem property taxes levied by, and owed to, local property taxing authorities, consisting of various local governmental units and special taxing districts (e.g., school districts), that are collected by a particular public official, sometimes a county clerk or county collector
for distribution to the various taxing bodies that levied them.
The IRS could keep your refund if you owed other Federal taxes, and offset what they owe you against what you owe them; but they can't offset what they owe you against what you owe some local taxing body or group of taxing bodies.
However, to the extent that the local tax collector has reached the point where he can seize your assets to satisfy your local property tax liability, your Federal tax refund, once received by you, is by definition one of your assets and can therefore be seized by the local tax collector to the same extent as any other asset of yours.
In the ordinary course under most state laws, the property that gave rise to the liability (your house in your case) would be the first property, and in many cases the only property, that would be seized and sold under the hammer to satisfy the liability.
I doubt that the local tax collector could garnish your refund by filing a notice with the IRS and collecting it directly from the IRS before you receive it, but I'm not completely certain of that result in every state.
There is a Federal statute known as the Assignment of Claims Act that provides that the Federal Government will not recognize assignments by people to whom the Government owes money to others and pay those others directly; rather, the Government will pay only the people to whom it owes money, and anyone to whom those people in turn owe money will have to collect it from them directly. Whether that applies also to nonconsensual assignments pursuant to, say, court judgments, is part of what I'm not sure about in this case.
2007-01-14 07:18:29
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answer #1
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answered by Anonymous
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Since house taxes are not federal, probably not, especially if you're still "being sued" and nothing has been finalized. But if you get your refund, you'd be ahead to pay off or pay toward those taxes - $1675 is a small amount to lose your home over.
Good luck.
2007-01-14 07:13:59
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answer #2
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answered by Judy 7
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Oh, yes, absolutely. If you owe the government money, they will subtract it from any they "owe" you until what you owe is paid off. They will also charge interest and withold that as well. They can also garnishee your wages, if needed.
2007-01-14 07:06:38
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answer #3
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answered by medimom 2
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Yes plus interest, and penalty's.
2007-01-14 07:02:04
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answer #4
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answered by Anonymous
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not if you use it to pay your real estate taxes
2007-01-14 07:05:41
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answer #5
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answered by edoubleyou 4
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