Key Terms for First-Time Filers
These terms come up often in offset notices, so it helps to know them first.
| Term | What it means |
|---|---|
| Offset | Keeping some or all of your refund to cover a debt you owe |
| Treasury Offset Program (TOP) | The program BFS runs, with authorization from Congress, to collect past-due debts from tax refunds |
| Joint return | One tax return that a married couple files together |
| Injured spouse | A spouse on a joint return whose share of the refund was taken for a debt that belongs only to the other spouse |
Debts That Can Trigger a Refund Offset
Your refund can be reduced to pay these types of past-due debts:
- Federal tax from a prior year
- State income tax
- State unemployment compensation debts
- Child support
- Federal agency nontax debt
If you owe federal tax, learn how that debt affects your refund. The type of debt you owe also decides who sends your notice.
How You’ll Find Out About an Offset
You should hear about an offset before it happens. Treasury says debtors are notified in advance of any offset action.
After the offset, your notice comes from whoever handled it.
| Type of debt | Who makes the offset | Who sends your notice |
|---|---|---|
| Federal tax from a prior year | IRS | IRS |
| All other debts | BFS, through TOP | BFS |
The BFS notice shows your original refund amount and the amount offset. It also names the agency that received the payment.
Who to Contact About a Refund Offset
The right contact depends on your question. The IRS doesn’t get offset details from BFS, so the IRS usually isn’t your first call.
- If you didn’t get a notice, call BFS at 800-304-3107 (TTY/TDD 800-877-8339), Monday–Friday, 7:30 a.m.–5 p.m. CST.
- If you disagree with the offset, follow your notice’s instructions to dispute it.
- If the refund on your BFS notice differs from the refund on your return, contact the IRS.
Getting Your Share Back With Injured Spouse Relief
If you filed a joint return and your refund went towards a debt only your spouse owes, you may be able to get your portion back. You do this by filing Form 8379, Injured Spouse Allocation.
You can file Form 8379 with your tax return, by mail or electronically. You can also mail it separately once you get notice that your refund went to a debt. File it within 3 years of the date the return was filed or 2 years of the date the tax was paid, whichever is later. The IRS can take up to 8 weeks to process Form 8379 filed by itself.
Sources
- IRS, Reduced Refund
- Bureau of the Fiscal Service, Tax Refund Offset
- IRS, About Form 8379, Injured Spouse Allocation
- IRS, Injured Spouse Relief
- Bureau of the Fiscal Service, Treasury Offset Program
