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  • How soon will the federal refund that was offset show on my account?

How soon will the federal refund that was offset show on my account?

It may take several weeks for the funds offset from your Federal tax refund to be applied to your State of Alabama debt.

It may take several weeks for the funds offset from your Federal tax refund to be applied to your State of Alabama debt.

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

Section 6402(e) of the United States Tax Code allows federal tax refunds to be offset to collect delinquent state income tax obligations. 31 U.S.C. § 3720A and other laws authorizes the Alabama Department of Revenue to enter into agreements with the Internal Revenue Service (IRS) and the U.S. Department of Treasury’s Bureau of the Fiscal Service -Debt Management to intercept or offset federal tax refunds and federal payments for State of Alabama income tax debts.

State and federal law authorizes the Alabama Department of Revenue to enter into agreements with the Internal Revenue Service (IRS) and the Department of the Bureau of the Fiscal Service-Debt Management to intercept or offset federal tax refunds and federal payments for Alabama state income tax debts.

If you have questions about the Treasury Offset Program (TOP) or the notice you received from the U.S. Department of the Bureau of the Fiscal Service-Debt Management, contact the U.S. Treasury Offset Program (TOP) Call Center at 1-800-304-3107. Many state and federal agencies offset debts through TOP. The notice you received from the Department of the Bureau of the Fiscal Service-Debt Management will outline the name of the state agency (or agencies) that requested the offset of your federal income tax refund, along with contact information for those agencies. A letter is sent for each offset.

The Alabama Department of Revenue did not offset the first or second Economic Impact (Stimulus) Payment for unpaid debts. The Economic Impact (Stimulus) Payment were approved and distributed by the U.S. Treasury. Alabama cannot legally offset social security benefits; however, the IRS does offset a percentage for unpaid federal taxes. Please contact the IRS at 1-800-829-1040.

No. The Alabama Department of Revenue does not charge a fee. However, the U.S. Department of the Bureau of the Fiscal Service-Debt Management charges a fee ($22.58) to offset federal tax refunds to pay tax debts. Bureau of Fiscal Service-Debt Management will deduct that fee before sending the funds to the Alabama Department of Revenue.