Refund if past taxes owed?

Question

If I am on a payment plan with the IRS for taxes from a previous year (when I owed), but this year I have a refund coming, will the IRS take this years refund and apply it toward the amount owed or will I get the refund??

Answer 1

Has anyone else noticed ROB always lists his source as "Internal Revenue Service 1-800-829-1040" but NEVER gives a specific source? His answers are no more reliable than anyone else on here, and less reliably than many.

My initial answer was wrong. The IRS answer your question as follows:

1.12 IRS Procedures: Refund Inquiries

Can a person receive a tax refund if they are currently in a payment plan for prior year's federal taxes?

As a condition of your agreement, any refund due you in a future year will be applied against the amount you owe. Therefore, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. The IRS will automatically apply the refund to the taxes owed. If the refund does not take care of the tax debt; you must continue the installment agreement.

Answer 2

Your refund will be applied towards any balance you owe the IRS,

Answer 3

in all probability not. Any garnishments to the government will take your refund (in simple terms that much less you owe is one thank you to think of roughly it). you should substitute your W4 withholding so which you get extra in the process the year (that way the government isn't making use of YOUR money).

Answer 4

I believe they will put it towards last year's amount owed. You may want to go to irs.gov and check out the FAQ section.

Answer 5

THEY SENT ME A LETTER SAYING THAT THEY WOULD APPLY IT TO MY TAX BILL .BUT TWO DAYS LATER I GOT MY REFUND

Answer 6

They will put it towards the past year's taxes.