Notice of intent to offset federal payments - Help with IRS collections
Got this scary letter from the IRS today - a "Notice of Intent to Offset Federal Payments" for unpaid taxes from 2022. I'm freaking out because I thought everything was paid up! I filed on time and even got a small refund that year. The letter says they're going to take money from my federal benefits (I get Social Security disability) to cover about $3,200 in supposedly unpaid taxes plus penalties. I don't understand how this happened. I've called the IRS number on the letter three times but can't get through to a real person - just automated messages. Has anyone dealt with this before? Can they really just start taking money from my disability payments? I'm on a fixed income and absolutely cannot afford this! The letter mentions something about having 60 days to respond, but I'm already 2 weeks into that timeframe and panicking.
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Oliver Weber
Yes, they can offset federal payments like Social Security, but you have options here! The Notice of Intent to Offset is serious but doesn't mean immediate action. First, request your tax transcript for 2022 at irs.gov/transcripts to see exactly what they think you owe and why. This often shows adjustments they made to your return that you weren't aware of. You might have missed a 1099 form or they disallowed a deduction. Next, you need to exercise your appeal rights. Call 800-829-1040 early morning (right when they open) for better chances of reaching someone. You can request a Collection Due Process hearing by submitting Form 12153 within the 60-day timeframe. This formally challenges the offset and can temporarily stop the collection. You might also qualify for Currently Not Collectible status if you truly can't afford to pay. This would put collections on hold while you're financially struggling.
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Amina Toure
•Thank you for this! I didn't know about requesting the transcript. Is that something I can do online or do I need to mail in a form? And with the Collection Due Process hearing - do I need to hire a tax attorney for that or can I handle it myself?
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Oliver Weber
•You can request the transcript online at irs.gov/transcripts - it's actually pretty straightforward. You'll need to create an account if you don't already have one, but then you can access and download your transcripts immediately. It's much faster than waiting for mail. For the Collection Due Process hearing, you can absolutely handle it yourself. Form 12153 is designed for taxpayers to complete without an attorney. Just clearly explain why you believe the tax isn't owed or why you're requesting a payment alternative. If your case becomes more complex, you can always seek help from a Low Income Taxpayer Clinic - they provide free assistance if you qualify based on income.
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FireflyDreams
I had almost the exact same issue last year with a surprise offset notice. After spending WEEKS trying to reach someone at the IRS, I finally tried taxr.ai (https://taxr.ai) and it was a game-changer. Their system reviewed my tax transcript, identified exactly where the discrepancy happened (turned out my employer reported different numbers than what was on my W-2), and gave me a detailed explanation of what happened. The best part was they showed me exactly what to say to the IRS and which forms to file to dispute it. It was so much clearer than the generic advice I found online. You upload your documents and their AI analyzes everything, flags the issues, and creates a personalized action plan.
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Natasha Kuznetsova
•Does this service actually work with these offset notices specifically? I got something similar but for student loans and wondering if it would help with that type of offset too?
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Javier Morales
•Sounds too good to be true honestly. How much does it cost? And do they actually communicate with the IRS for you or just give you advice?
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FireflyDreams
•Yes, it absolutely works with offset notices! The system is designed to analyze any tax document including offset notices. It specifically helped me understand the exact reason for my offset and what to do about it. For student loan offsets, it would show you the options available through both the IRS and Department of Education. They don't communicate with the IRS for you - they analyze your documents and give you personalized guidance on what to say, what forms to file, and how to resolve your specific situation. It's not a replacement for talking to the IRS yourself, but it prepares you perfectly for that conversation so you're not confused or intimidated. They don't charge based on the tax amount either - it's a flat rate service focused on analysis and guidance.
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Natasha Kuznetsova
I tried taxr.ai after seeing the recommendation here, and wow - it actually worked! I uploaded my offset notice and some past tax documents, and within minutes I had a clear explanation of what happened. In my case, I had forgotten to report a 1099-MISC from a small freelance job I did, which triggered the whole mess. The guidance was super clear - they showed me exactly which forms to file and even gave me templates for a letter explaining my situation. I followed their step-by-step plan, submitted everything they recommended, and just got confirmation that my offset has been put on hold while they review my case! This would have taken me weeks to figure out on my own.
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Emma Anderson
If you're still struggling to reach someone at the IRS, try Claimyr (https://claimyr.com). I was in your exact position with an offset notice last year and spent DAYS trying to call the IRS without success. Claimyr got me connected to an actual IRS agent in about 15 minutes when I'd been trying for weeks on my own. They basically hold your place in the IRS phone queue and call you when they've got an agent on the line. You can see exactly how it works in this video: https://youtu.be/_kiP6q8DX5c When I finally spoke to an agent, they discovered the offset was actually an error on their end - they had applied my payment to the wrong tax year. The agent fixed it immediately once I actually got to talk to someone. Would have lost $2,700 to an offset that wasn't even legitimate if I hadn't finally reached them.
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Malik Thompson
•Wait, how does this even work? The IRS phone system is a nightmare - how can they get through when nobody else can?
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Isabella Ferreira
•This sounds like a scam. Why would I pay someone else to call the IRS for me? And how do they magically get through when the lines are always busy? I'm skeptical.
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Emma Anderson
•They use a system that continuously redials and navigates the IRS phone tree until it gets through to an agent. It's the same thing professional tax resolution firms do, but they made it available to everyone. When they get an agent, they call you and connect you directly - they're not on the call with you, it's just you and the IRS agent. They're definitely not a scam - they don't ask for any personal tax information. All they need is your phone number to call you back when they get through. I was skeptical too until I saw it worked. The reason it works is pure persistence - their system can keep trying hundreds of times when most of us would give up after a few attempts.
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Malik Thompson
•Wait, how does this even work? The IRS phone system is a nightmare - how can they get through when
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Isabella Ferreira
I owe everyone here an apology, especially the Claimyr folks. After my skeptical comment, I decided to try it anyway out of desperation (had an offset notice for $4,100). Not only did it work exactly as described, but I got through to the IRS in about 25 minutes when I'd been trying unsuccessfully for over a week. The IRS agent was able to put an immediate hold on my offset while I submit some documentation they needed. Turns out there was a legitimate issue with my return, but now I have 45 days to resolve it instead of having my tax refund completely taken. Literally saved me from a financial disaster since I was counting on that refund for some urgent home repairs.
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CosmicVoyager
I successfully stopped an offset notice last year by requesting Currently Not Collectible status. I printed out Form 433-F (Collection Information Statement), filled it out showing my income and expenses, and faxed it to the number on my notice. The key is documenting that you literally can't pay your basic living expenses and the tax debt. They put me in CNC status for 12 months, which stopped the offset immediately. You'll still eventually need to address the debt, but it buys you time to figure things out when you're in a financial emergency.
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Ravi Kapoor
•Did they ask for proof of all your expenses? I've heard they make you send bank statements and bills to prove everything on the 433-F form.
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CosmicVoyager
•They didn't ask for proof upfront, but they did call me to verify some information. After that call, they requested three months of bank statements and copies of my utility bills and rent agreement. I think they only dig deeper if something looks inconsistent or if the amount you owe is substantial. The key is being honest on the form. If you claim expenses that are significantly higher than what the IRS considers reasonable for your area (they have internal guidelines), that will trigger more scrutiny. I stuck to my actual basic expenses and they approved my CNC status without too much back and forth.
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Freya Nielsen
Has anyone successfully used an Offer in Compromise for this situation? I got an offset notice for $6,300 from a business I closed years ago, and I'm wondering if I can settle for less since there's no way I can pay the full amount.
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Oliver Weber
•Offers in Compromise can definitely work for offset situations, but they take time to process (6-12 months typically). If you want to stop an imminent offset, you should first request a Collection Due Process hearing to get immediate protection while you prepare your OIC. The success of an OIC depends on your financial situation. The IRS uses a specific formula to determine your "reasonable collection potential." If you can prove you'll never be able to pay the full amount before the collection statute expires (typically 10 years), you have a good chance. Form 656 is used for the offer, along with Form 433-A detailing your financial situation.
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