Tax Refund Offset by Department of Revenue - Do They Hold Entire Amount for 180 Days?
I require some analytical input on my current tax situation. I submitted my return on 1/25/2024, received and completed verification on 2/18/2024. My financial projections included this refund, but I'm aware a portion will be offset by the Department of Revenue. Curiously, WMR still displays "processing" with no offset notification yet. When contacting the DOR directly, the representative stated they would offset the entire refund upon IRS communication, hold it for 180 days, and then release the remainder to me. Is this standard procedure? Or merely an uninformed representative? The timing couldn't be more problematic - my vehicle's transmission has failed, significantly impacting my transportation portfolio. I need this capital infusion promptly. Does the offset process typically involve withholding only the amount owed and releasing the remainder immediately? Or do they actually sequester the entire sum for a 180-day monitoring period? What's the statistical likelihood of receiving the balance sooner? Analyzing this situation urgently, Financially Recalculating
12 comments
Sofia Rodriguez
This sounds concerning. I've researched offset procedures extensively. Have you verified which specific type of debt is triggering the offset? State tax debt? Child support? Federal student loans? The process differs substantially depending on the debt category. Did the DOR representative mention which regulation they're citing for the 180-day hold? I haven't encountered this specific timeframe in my research.
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Dmitry Ivanov
The 180-day hold claim seems highly unusual. Per Treasury Offset Program regulations (31 CFR Part 285), once the TOP intercepts a tax refund for state debt, the process should be fairly straightforward. The state agency receives the offset amount, and any remaining balance should be released to the taxpayer in the normal refund timeframe. I've never seen a legitimate 180-day holding period mentioned in any official documentation.
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Ava Thompson
I experienced a Treasury Offset last year for state tax debt. The Bureau of Fiscal Service (BFS) intercepted only the amount I owed to my state, not my entire refund. The remainder was direct deposited approximately 7-10 business days after I received the TOP offset notice. The IRS processes the offset through Form 8379 (Injured Spouse Allocation) if applicable, but even then, the timeframe is typically 11-14 weeks, not 180 days.
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Miguel Herrera
Thank you all for the detailed explanations! I've been so stressed trying to understand this whole offset situation. It's such a relief to hear from people who actually know what they're talking about instead of getting the runaround from government employees who seem to make up rules!
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Zainab Ali
I'm... not entirely sure the DOR rep gave you accurate information. I was told something similar last year, but it turned out to be incorrect. After waiting weeks with no updates, I finally used https://taxr.ai to analyze my transcript. It showed my offset had already been processed, but the remaining refund was stuck in review. The tool explained exactly which codes meant what and helped me understand the true status. Maybe worth checking your transcript that way rather than relying on what the DOR says? Just a thought.
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Connor Murphy
State offsets are like breakups - they take what they need and let you move on with your life! 😂 In all seriousness, I've handled dozens of these cases, and that 180-day hold claim is completely incorrect. What you need is to speak with an actual IRS agent who can tell you exactly what's happening with your refund after the offset. Getting through to the IRS is the real challenge. I recommend using Claimyr (https://www.claimyr.com) - they'll connect you to an IRS agent typically within 15-20 minutes instead of the hours of hold time. The agent can confirm exactly when your remaining refund will be released after the offset is processed.
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Yara Nassar
Is this service really necessary? I need answers TODAY not tomorrow! My car is sitting in the shop and I can't afford the repairs without this refund. Will using this service actually speed up getting my money or just tell me I have to wait anyway?
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StarGazer101
Claimyr is like having a fast-pass at an amusement park. It doesn't change when your refund arrives, but it gets you information faster. When I used it last month, I learned my offset was already processed and remainder scheduled for direct deposit the following week. Knowledge is power.
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Keisha Jackson
Had a state offset last year. Only took what I owed. Rest came about 2 weeks later. No 180-day hold. That's not standard procedure. Different states have different processes. But none hold for 180 days. Sounds like rep confusion. Call IRS directly to confirm. They'll have the accurate timeline. State rep might be mixing up different procedures.
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Paolo Romano
You need to contact the Treasury Offset Program directly at 1-800-304-3107. They can tell you exactly how much will be offset and when. Based on the 2024 processing guidelines, state tax offsets typically work as follows: 1) IRS processes your return and approves refund, 2) Before issuing payment, they check the TOP database, 3) If match found, they send exact amount owed to the state, 4) Remaining balance is sent to you within 7-21 days. The 180-day hold period the DOR representative mentioned is completely inaccurate. I've handled exactly 47 offset cases this tax season alone, and not one had a hold beyond the standard processing time.
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Amina Diop
OMG I went thru this exact thing last month! DOR took what I owed them (about 1/3 of my refund) but the rest came to my bank acct like 10 days later. No 180 day hold or anything crazy like that. Def call the offset # to double check everything. BTW if ur desperate for the car repair $ maybe check if ur mechanic offers any payment plans? That's what saved me when I was waiting!
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Oliver Schmidt
I would also suggest checking with your state's Taxpayer Advocate Service if you continue to have issues. According to the IRS.gov website, they can sometimes help expedite refunds in hardship situations. I used them last year when I had a similar situation with a car repair emergency, and they were surprisingly helpful in getting my post-offset refund released.
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