Tax refund offset for PA UC PUA overpayment? Got letter from IRS Kansas City

just open the letter??? why ask strangers when the answer is right in front of u

Yes, a letter from Treasury in Kansas City is typically a notification that they've intercepted your tax refund for an outstanding government debt. Since you have a PUA overpayment that you're making payments on, it's very likely they've taken your refund to apply to that balance. The good news is that the amount will be credited to your overpayment balance. The letter should explain exactly how much they took and what debt it was applied to. Call the PA UC Overpayment Services at 1-866-403-6163 after you open the letter to confirm the offset was applied correctly to your account. They should be able to tell you if your payment plan needs to be adjusted based on this large payment.

This happened to me last year!! my heart sank when i got that letter. they took my entire refund ($3400) for a PUA overpayment too. it SUCKS but honestly it did make a huge dent in what i owed. and yes, they definitely apply it to your balance - mine updated online about 2 weeks after they took the refund.

nope, no warning at all! i was on a payment plan too making regular $75 payments. apparently the payment plan doesn't stop them from taking tax refunds. i found that out the hard way :/

Unfortunately, being on a payment plan with PA UC doesn't prevent the Treasury Offset Program from intercepting your tax refund. For PUA overpayments specifically, the state is required to refer these debts to TOP after they are delinquent for a certain period, even if you're making payments as agreed. What's important to know is: 1. The intercepted refund will be applied to your overpayment balance 2. You should receive an updated statement showing the new balance after the offset is processed 3. You can request a review if you believe the offset was in error 4. This won't affect your future tax refunds if the debt is paid off I recommend calling both the Treasury Offset Program (1-800-304-3107) and PA UC Overpayment Services to verify everything is properly documented. You might also want to adjust your payment plan since a large portion of your debt may now be satisfied.

I HATE how the government does this!!! They steal YOUR money without warning and act like they're doing you a favor. I had an overpayment too (not even my fault, THEY calculated wrong) and they took my entire $2800 refund last year. You'd think they would at least TELL YOU before they just TAKE IT!!!!

Have you tried using Claimyr to connect with a live agent at PA UC? I was having the same offset issue last month and couldn't get through the phone lines for days. A friend recommended Claimyr (claimyr.com) and it actually worked - they connected me to a PA UC agent in about 20 minutes. The agent was able to explain exactly how the tax offset would be applied to my balance and when I could expect to see it reflected in my account. They have a demo video too: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. Much better than waiting on hold for hours!

It definitely worked for me. I was skeptical too, but after trying to call for three days straight and getting nowhere, I was desperate. The UC agent I spoke with was able to pull up my account and confirm exactly how my offset was applied and explained the whole process. Saved me a ton of stress.

My sister got a PUA overpayment and they took her refund too but then her account got all messed up and they never credited the payment right and shes been fighting with them for months so make SURE you keep calling until they confirm it was applied correctly dont just trust that theyll do it right because PA UC is a disaster with their record keeping for real

One important thing to know: if your overpayment is classified as "non-fraud" (which you mentioned it is), you may be eligible to request a waiver for the remaining balance after the tax offset is applied. PA has been approving many non-fraud overpayment waivers if you can demonstrate that repayment would cause financial hardship. To request a waiver, you need to complete the Overpayment Waiver Request form available on the PA UC website or by calling the Overpayment Services department. The review process can take 4-8 weeks, but it's worth trying, especially after a large portion has been satisfied through the tax offset.

Mine was classified as "non-fraud" too but they STILL denied my waiver request!! The whole system is designed to squeeze money out of people who can least afford it. They make the forms complicated ON PURPOSE so people will give up and just pay.

For those facing tax refund offsets due to PA UC overpayments, it's important to understand that there is a formal appeal process if you believe the offset was incorrect. You have 30 days from the date on the Treasury offset notice to appeal in writing. This is separate from the PA UC overpayment appeal process. Note that successfully appealing the tax offset itself is rare unless there's been a procedural error, but it's still an option available to you. Common successful appeal reasons include: 1. The debt was already paid in full 2. The debt was discharged in bankruptcy 3. You've established an approved payment plan (though this doesn't always prevent offset) 4. You weren't properly notified about the potential offset Also, if you filed jointly with a spouse who isn't responsible for the overpayment, they can file an Injured Spouse claim (Form 8379) to get their portion of the refund returned.