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  • How will I know if my federal tax refund or payment was intercepted to pay a state debt?

How will I know if my federal tax refund or payment was intercepted to pay a state debt?

The U.S. Department of the Bureau of the Fiscal Service-Debt Management will notify you in writing that an offset has occurred. TOP will provide information regarding the amount and date of the offset, the state to which the offset was paid, and a phone number to call where individuals may address your concerns and questions regarding the debt associated with the offset. The telephone number (334-353-0775) on the letter is to the Alabama Department of Revenue’s Examiner line.

The U.S. Department of the Bureau of the Fiscal Service-Debt Management will notify you in writing that an offset has occurred. TOP will provide information regarding the amount and date of the offset, the state to which the offset was paid, and a phone number to call where individuals may address your concerns and questions regarding the debt associated with the offset. The telephone number (334-353-0775) on the letter is to the Alabama Department of Revenue’s Examiner line.

Related FAQs in Federal Refund Offset - TOP, Individual Income Tax

The U.S. Department of the Bureau of the Fiscal Service-Debt Management will notify you in writing that an offset has occurred. TOP will provide information regarding the amount and date of the offset, the state to which the offset was paid, and a phone number to call where individuals may address your concerns and questions regarding the debt associated with the offset. The telephone number (334-353-0775) on the letter is to the Alabama Department of Revenue’s Examiner line.

Yes. The Alabama Department of Revenue will continue to offset federal income tax refunds and state refunds even though you are meeting your payment arrangements. Alabama statute allows for the offset of an Income Tax refund until the account is paid in full even if you are on an approved Payment Plan. Your regular monthly payment must still be made to avoid defaulting on your Payment Plan which could lead to enforcement action.

The Alabama Department of Revenue cannot stop an offset once you are notified by the U.S. Department of the Treasury’s Bureau of the Fiscal Service –Debt Management. We will refund any overpayment to you once it has been posted to your account.

Complete IRS Form 8379, Injured Spouse Allocation, and send it to the Internal Revenue Service (IRS) to get your share of the refund. You can download the form at http://www.irs.gov/pub/irs-pdf/f8379.pdf . You can also call the IRS at 800-829-3676, or visit a local IRS office.

An offset is when the Alabama Department of Revenue intercepts your income tax refund and applies the refund to a balance owed to the State of Alabama. If the full amount owed is not collected in 180 days, the Alabama Department of Revenue may offset future federal payments to satisfy your state tax debt.