Was your income tax refund taken or less than expected?

The Treasury Offset Program can use all or part of your federal refund to settle certain unpaid federal or state debts, to include unpaid individual shared responsibility payments.

The Department of Treasury’s Bureau of the Fiscal Service, or BFS, runs the Treasury Offset Program. The BFS may also use part or all of your tax refund to pay certain other debts such as; Federal tax debts, Federal agency debts like a delinquent student loan, State income tax obligations, Past-due child and spousal support or Certain unemployment compensation debts owed to a state.

The BFS will mail you a notice if it offsets any part of your refund to pay your debt. The notice will list the original refund and offset amount. It will also include the agency that received the offset payment. It will also give the agency’s contact information.

Health Care Law

Refund Offsets and the Individual Shared Responsibility Payment. While the law prohibits the IRS from using liens or levies to collect any individual shared responsibility payment, if you owe a shared responsibility payment, the IRS may offset your refund against that liability.