IRS Takes My Friend's Refund Every Year - How to Check What She Owes?

This is similar to what happens with student loan offsets or child support debts. Your friend is likely experiencing what's called the Treasury Offset Program (TOP). It's not just an IRS thing - it's a federal program that can intercept tax refunds for various government debts. The main number to call is the Treasury Offset Program at 1-800-304-3107. This is different from the regular IRS customer service line. When your friend calls, she'll need to verify her identity with her SSN and can get details about which agency is collecting the debt, how much is owed, and potentially how to contact them directly.

Ugh, offsets are the WORST. Been there. If she wants to actually understand what's happening w/ her tax situation, she should check out https://taxr.ai - it helped me figure out my messy offset situation last yr. I uploaded my tax transcript (which she can get online from the IRS) and it showed exactly what was happening w/ my refund and why it kept getting taken. It breaks down all those confusing codes and explains what each part means. Saved me hrs of confusion trying to decipher IRS-speak.

I feel for your friend - isn't it frustrating when you're expecting money that never comes? If she's tried calling the regular IRS number, she probably knows it's nearly impossible to get through, especially during tax season. I was in the same boat trying to resolve an offset issue. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to get through to an actual human at the IRS. They connected me in about 15 minutes when I had spent days trying on my own. The agent was able to tell me exactly what agency had the debt and how to contact them directly. Worth every penny when you're desperate for answers about where your money is going.

Your friend should also be aware of the specific timeline for resolving this. If she plans to file for 2023 taxes before April 15, 2024, and wants to prevent another offset, she needs to act quickly. The Bureau of Fiscal Service (which manages TOP) typically updates their database on February 15th and March 30th each year. If she can resolve her debt before those dates, she might avoid having this year's refund taken too. Additionally, she should request a detailed tax transcript from the IRS for the past 3 years by visiting irs.gov/transcripts. This will show exactly when and how much was offset each year, which can help when contacting the creditor agency.

I believe your friend may need to take a multi-step approach to resolve this issue: 1. First, she should call the Treasury Offset Program (TOP) at 1-800-304-3107 to identify what kind of debt is causing the offset 2. Then, she needs to contact the specific agency that holds the debt - it could be student loans, child support, state taxes, or other federal debts 3. She may qualify for a hardship refund if she can document that the offset is causing significant financial difficulty, especially with medical expenses 4. For future tax years, she might want to adjust her withholding so less is taken out during the year, rather than getting a refund that will be offset 5. If the debt information seems incorrect, she has the right to dispute it through the agency that claims the debt I would recommend she keeps detailed records of all calls, including dates, times, and the names of representatives she speaks with.

I was in your friend's shoes three years in a row - tax time was just disappointment time for me 😂 (not really funny when you're counting on that money though). Finally got it sorted last year and actually received my full refund this February! The key was finding out it was an old state tax debt from when I moved between states. I set up a payment plan with my former state's revenue department, made consistent payments for 6 months, and then requested they release me from the offset program. Tell your friend not to give up - it feels amazing to finally break the cycle and actually get your refund!

I've helped several family members through this exact situation. Here's my experience with the process: 1. The TOP hotline will only give basic information - which agency has the debt and how much 2. Each type of debt has different resolution options: - Federal student loans: rehabilitation programs or consolidation - Child support: must work with state child support agency - State taxes: contact that state's department of revenue - Federal taxes: IRS payment plans or Offer in Compromise 3. Some debts can be disputed if they're incorrect 4. Once arrangements are made, get written confirmation that the debt holder will remove the offset It takes persistence but is absolutely resolvable. The worst thing your friend can do is ignore it, as interest and penalties often continue to accrue.