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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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Can restitution owed be taken by the IRS?

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If you owe restitution dictated by a court, can the IRS defer your refund to the court instead of sending it to you?

Hello and thank you for using JustAnswer. If the restitution is for a State debit you owe, the State can have the Federal government offset your Federal tax return. One way to avoid an offset of your Federal income tax refund is to have your employer change your W4 to have less Federal income tax withheld from your wages.

Customer: replied 8 years ago.

I don't understand what a "state debit" is - the restitution was for a theft conviction.

If the restitution is owe to a State and not a individual or company.
Customer: replied 8 years ago.
Reply to Marvin,EA's Post: I am sorry to be so dense; I was ordered by the court to pay through the court and they send the money to the company

The court might have send a offset order to have your Federal tax refund sent to the State court for payment to that company for restitution. You can call the IRS debt indicator for individual at(###) ###-####

Customer: replied 8 years ago.
I had called that number and no debts against my ssn are shown; so do you make the supposition what when I checked (irs website) to see about my refund status and the link appeared saying it applied to my tax situation and it was referring to the regulation previously stated that everyone sees that link or is there something more happening?

The IRS web site for refund is only for tax year 2007. You wrote that you received a refund for 2007. Did you received a Economic Stimulus Payment?

Customer: replied 8 years ago.
Reply to Marvin,EA's Post: I got both the 2007 stimulus payment and my refund. But you can get other years from the status on the website - just by putting in the amount from the 2006 refund, it then shows the info and it does state it is for tax year ending 2006.

However, I did not get my state refund back for 2007 - I got a letter saying that had applied it against my restitution

I believe only your State tax refund will be offset to pay the restitution. Your State did not request the Federal to offset your Federal income tax refund.

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