Can you get a refund if you owe back taxes but you are paying them off?

Question

I owe back taxes for the tax year 2004. I have made payments. Can I still recieve a refund for tax year 2006?

Answer 1

Even though you are making payments, any state and federal refunds will be applied to balance to pay it. Look at it this way, the back taxes will be paid off even faster with the refund applied.
You may want to make sure that you have an official monthly payment arrangement with the IRS by calling 1-800-829-7650 from 8:00 am-8:00 pm. You can send payments by mail by receiving a notice once a month, through payroll deduction, an automatic withdrawl from your bank account and you can also establish payments online at WWW.EFTPS.GOV

You want to make sure that you have a payment plan or the IRS can place a levy on your paycheck to deduct a large portion of your payroll or your bank account that will wipe out your checking and savings.

Answer 2

Nope, no refunds until all back taxes are paid. Even if you're on a payment plan with the IRS. But, when your refund is applied against your debt, it will be paid off that much more quickly.

Answer 3

The IRS will withhold your refunds until your back taxes are paid off. If your refund is larger than what you still owe, you will get the rest back.

Answer 4

Think about it - do you really think the IRS is silly enough to give you a refund when you owe them money!

Also why would you even consider claiming a refund when you can apply it straight to paying off your debt, with this kind of thinking no wonder you are having money problems.