Tax Offset Timeline for Back Taxes - 2022 Debt vs. 2024 Refund

Here's how the Treasury Offset Program (TOP) typically works: 1. When you have a delinquent tax debt, the IRS can collect via refund offset 2. Before offsetting, they must send you a CP504 notice (Final Notice of Intent to Levy) 3. After receiving this notice, your account is eligible for offset 4. The IRS computer systems perform a check for outstanding liabilities before processing refunds 5. If your 2023 refund wasn't offset, possible explanations include: - Your debt hadn't yet been certified for offset - There was a processing delay in entering your debt into the system - You had a temporary hardship status - Administrative error For your 2024 refund, unless you've resolved the liability or have an approved payment plan in good standing, expect the offset to occur.

Did you receive a CP504 notice? When exactly? Did you set up a payment plan? Is it current? What's the total amount owed? These details matter for timing.

I actually had the exact same situation! Owed for 2022, got my full refund for 2023 (filed in March 2023), but then my 2024 refund got completely offset. Turns out there's a lag in their system updating the offset database. My CP504 arrived in May 2023, but the offset didn't happen until this year's refund. The IRS rep explained that I just got lucky with the timing last year. 😂 My advice: don't count on getting your refund if you have outstanding tax debt, even if you escaped offset last time!

When I needed definitive answers about my offset situation, I spent 3 days trying to reach someone at the IRS. Compared to my experience with student loan offsets (which took 15 minutes to resolve), the IRS was nearly impossible to reach. I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent within 30 minutes. They confirmed exactly when my account had been certified for offset and what would happen with my upcoming refund. Much better than wondering and stressing about whether the money would arrive or not.

Has anyone checked if the IRS Where's My Refund tool shows different status codes when an offset is pending? I've been researching online but can't find consistent information about how offsets appear in the tracking system.

The community consensus seems to be that offset timing is unpredictable! I've seen dozens of posts about this over the years. Some people get offset immediately after the first notice, others go 2-3 years without offset despite owing. The most reliable approach is to assume offset will happen and be pleasantly surprised if it doesn't. God, it's frustrating how inconsistent their systems are! The best protection is to adjust your withholding so you don't have a refund to offset in the first place.

I owed $4,300 from 2021. No offset in 2022. Got hit with offset in 2023. Called IRS directly. Agent told me point blank: "The offset system doesn't always catch everything in the first year." That's it. No explanation. Just their systems being slow. Don't count on getting that refund if you owe them money.