Federal Tax Refund: The IRS Can Keep Your Tax Refund

Federal Tax Refund

You can’t wait for your tax refund, just to discover that the IRS is going to keep your tax refund. And, before you think that this is a mistake and that they can’t do this to you, you need to know that they can actually keep your tax refund under certain circumstances. Here are some of the reasons why the IRS can actually keep your tax refund.

You have past tax debt

The one thing that you might not know, is that if you have any past tax debt that you didn’t paid or that you are still paying, then you are not going to see a cent of your tax refund until the debt has been paid.

The IRS has a right to keep your tax refund until you have paid your debt in full. And, it doesn’t matter if you were aware of the tax debt that you are owning or not. So, before you start thinking about spending your tax refund, you should make sure that you are not owning the IRS any money.

Owning child support

Another legal reason why the IRS can keep your tax refund from you, is when you are owning child support to the legal guardian of your children.

The IRS can actually see if you are behind on child support. Even if the legal guardian isn’t suing you for paying the child support. And, this can continue on for year after year, until you have paid your child support in full. Many people think that when the child reaches the age of 18, that they will not get their refund again, you should think again. They can hold your refund for as long as it will take to repay the legal guardian of your children. They are sending the refund to your children’s guardian, until the debt has been paid and you paying your child support correctly.

Using tax refunds to pay for bankruptcy

Many people that are in bankruptcy think that they can use their tax refund to repay some of their debts that they might have. However, you should not hope on getting your refund while you are still owning people money.

Federal Tax Refund

Your creditors can ask the court to use your tax refund money to repay them, meaning that you are not going to see a cent of the money that you’re going to get as your tax refund. They are going to divide the money between all the creditors that you might have. This doesn’t always happen to people that are in bankruptcy, but there is change that you can lose your refund.go to http://www.nj.com/news/index.ssf/2016/05/ny_man_sentenced_in_theft_ring_led_by_his_brother.html for more updated news.

Just when you think that you are going to get a large amount back as tax refund, you realize that this is something that isn’t going to happen. And, before you think that the IRS has made a big mistake, you should make sure the reasons why they withheld your tax refund. If you are guilty to anyone of these three points, then you need to know that your tax refund is going to someone else and not coming to you.

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