Posts Tagged ‘Tax Refund’

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Do You Have Any Unpaid Bills (Debt) With ANY Federal Agency? – It Will Affect Your Tax Refund!

Monday, April 21st, 2014

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

 I am reading more information from the Internet and professional publications regarding this capability of the U. S. Government, including the Internal Revenue Service.  The program is  the Treasury Offset Program (TOP) which is administered by the Bureau of the Fiscal Services Debt Management Services (DMS).

The Treasury Offset Program is a centralized offset program, administered by the The Bureau of the Fiscal Service’s Debt Management Services (DMS), to collect delinquent debts owed to federal agencies and states (including past-due child support), in accordance with 26 U.S.C. § 6402(d)Exit Fiscal Service Web site (collection of debts owed to federal agencies), 31 U.S.C. § 3720AExit Fiscal Service Web site (reduction of tax refund by amount of the debts), and other applicable laws.

How Does It Work?

Fiscal Service disburses federal payments, such as federal tax refunds, for agencies making federal payments (known as “payment agencies”), such as the Internal Revenue Service. “Creditor agencies,” such as the Department of Education, submit delinquent debts to the Fiscal Service for collection and inclusion in TOP and certify that such debts qualify for collection by offset (the reduction or withholding of a payment).

Payment agencies prepare and certify payment vouchers to Fiscal Service and disbursing officials at other federal agencies that are non-Treasury disbursed (such as the Department of Defense), who then disburse payments. The payment vouchers contain information about the payment including the name and Tax Identification Number (TIN) of the recipient.

Before an eligible federal payment is disbursed to a payee, disbursing officials compare the payment information with debtor information, which has been supplied by the creditor agency, in Fiscal Service’s delinquent debtor database. If the payee’s name and TIN match the name and TIN of a debtor, the disbursing official offsets (withholds) the payment, in whole or in part, to satisfy the debt, to the extent legally allowed.

Fiscal Service transmits amounts collected through offset to the appropriate creditor agencies. Fiscal Service maintains information about the delinquent debt in the TOP delinquent debtor database and continues to offset eligible federal payments until the creditor agency suspends or terminates debt collection or offset activity for the debt.

A creditor agency will suspend collection if the debt is subject to a bankruptcy stay or if other reasons justify suspension. A creditor agency will terminate collection of a debt if it is paid in full, compromised, discharged, or if other reasons justify termination.

Therefore,  your tax refund will be reduced by any delinquent or unpaid debts to other Federal agencies: (more…)

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Where Is Your Federal Tax Refund?

Thursday, February 24th, 2011

Although the filing of the 2010 tax returns started later than usual this year (February 14th), if you will be receiving a Federal tax refund you’re probably ready to have it in your bank account as soon as possible.   Your goal should be to take advantage of every opportunity to accelerate the process and receive your income tax refund as quickly as possible.

Among the options that are available to you are to:

1)  e-file – faster processing of your tax returns,  fewer opportunities for processing errors by the taxing authorities, and

2)  direct deposit – if you look at the Federal e-file refund cycle chart on this website you’ll see that direct deposit refunds are sent electronically about eight days after the end of the cycle period. Checks are mailed seven days later. Add 5-7 days for in transit mail time and you should conclude that you’ll have your tax refund about 12-14 days sooner if you wisely select the e-file/direct deposit alternative. You can also track the status of your refund via the “Where’s My Refund” section of the IRS website or by calling 1-800-829-1954.

Note: While most states offer a similar option their refund cycle period may not be on par with the Internal Revenue Service.

If your 2010 tax refund is more than $1,000.00 you may want to consider reducing the amount of your quarterly estimated tax payments or your payroll Federal withholding amount using Federal Form W-4 (Employee’s Withholding Allowance Certificate).  The instructions are included with the form, including a worksheet for your calculations on the reverse side of the form.

 Additonally, if you owe the taxing authority delinquent taxes or are on an installment payment plan, etc you should expect to have your refund applied to that unpaid balance. If there are any remaining funds due you afterwards that amount will be sent to you.

Here is additional information on this subject : (more…)

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