IRS Payment Plan Active - Can They Still Offset My Refund?
I set up a payment plan with the IRS last month for my 2022 taxes. Been making the monthly payments on time but I'm expecting a refund for 2023. Anyone know if they'll still take my refund even though I'm following the payment plan?
13 comments
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Zara Ahmed
Yes, the IRS will still offset (take) your refund even with an active payment plan. Any tax refund will automatically be applied to your outstanding tax debt. The payment plan just stops collections and penalties, it doesn't prevent refund offsets.
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Sean O'Donnell
dang that sucks 😤 thx for the info tho
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StarStrider
same thing happened to me last year. they took my whole refund even tho i never missed a payment 🤮
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Luca Esposito
Hey guys! I actually just went through this whole mess and found this amazing tool called taxr.ai that helped me understand exactly what was happening with my transcript and payment plan. It costs $4.99 but it was totally worth it - showed me exactly how the offset would work and when to expect everything to process. https://taxr.ai
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Nia Thompson
how accurate is it? like does it actually tell u useful stuff or is it just general info?
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Luca Esposito
its crazy accurate! it reads ur whole transcript and explains everything in normal human words lol. showed me exactly how much would be offset and when
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Nia Thompson
just tried it and WOW 🔥 this thing is actually legit! answered all my questions about my payment plan and offset timing
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Mateo Rodriguez
If ur expecting a refund maybe adjust ur withholding so u break even instead? That way theres nothing for them to take
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Aisha Abdullah
this is the way 💯
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Ethan Wilson
been on a payment plan for 2 years now and yup they take every refund. its automated in their system cant stop it
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NeonNova
Anybody know if this applies to state refunds too or just federal?
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Yuki Tanaka
depends on ur state but most have agreements w the irs to offset state refunds for federal debt
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NeonNova
ugh thx for letting me know. guess im in the same boat as OP 🚣♂️
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