Tax Refund-Any1 get theirs offset/garnished?

Question

Hey All,

Good to see the board is still doing well!

I have a question for you all, please.

I got this msg on 'Where's my refund' site;

Refund Status Results
Please select this button to print your Refund Results for your records.

Your tax refund is scheduled to be direct deposited on March 16, 2007. If your refund is not credited to your account by March 21, 2007, check with your bank to find out if it has been received. Please wait until March 21, 2007 before you contact us again because we are unable to take any action until then.


HERE-> Please read the following information related to your tax situation:

* Tax Topic 203 - Failure to Pay Child Support, Federal Non-Tax and State Income Tax Obligations

Please Note:

Your refund may be reduced to pay a past due obligation such as child support, another federal agency debt, or state income tax. If this applies to you, the Financial Management Service, who issues IRS refunds, will send you a notice informing you of any offset they have made. The details of the debt are not provided to the IRS. Please do not call us to inquire about the details because we will not be able to answer your questions. Instead, direct any questions you have about the offset or debt to the agency identified on the notice.


I am wondering did any of you get your refund and have the part where I put 'HERE->' and still got your refund anyway?

I am trying to figure out if they put that there because they know I am being offset/garnished or if they put that at the bottom of your refund deposit notice as a disclaimer for everyone. I don't recall it being there last year, but maybe I just don't recall, damn tree's making me forget stuff lol.

I called the FMS (financial management services) about the defaulted student loans but they say it 'may' be garnished. Whatever nonsense that is, like uh tell me yes or no dammit lol.

Anyway, thanks for any reply's!!

Sean

Answer 1

If you defaulted on your Student Loan your refund WILL be offset to pay towards the debt that you owe

Answer 2

I just got hosed by FMS. To the best of my knowledge I owe NOTHING to any Fed agency, and my kids are grown and gone. And my student loans are in deferment until 06/09/07.

But they just kept $13,000 of my refund.... is there anyway I can find out if they are just researching if I owe anything, or is this a definite that someone is claiming $13k of my money?? If you read IRS Topic 203...its pretty vague. It almost reads like the FMS can hold a part or all of your refund until the IRS "certifies" your refund.

I think its pretty wrong that the IRS and/or FMS can hold your money hostage if all they are doing is "looking into if you owe money".

Thanks for your help.

Answer 3

The IRS can't tell you if your refund is subject to offset. FMS should be able to tell you if your loan was submitted for offset against your return. The IRS recommends contacting the agency you owe to determine if they submitted the debt for offset. I suspect doing so would result in the debt being submitted if it has not been already.

Answer 4

I can't help exaclty with why that's there but to let you know that you don't have to live with your taxes being garnished because of your student loans.

There are ways to get into a payment program to get up to speed on your loans and avoid garnishment. Of course FMS will not work with you on this, you'll have to go to the origional lenders or servicers.

Answer 5

My son-in-law and daughter get the same message every year, and every year their refund is offset. (He owes back child support.) So I would guess that's probably what will happen to yours also.