Asked by Birdyt052  |  Submitted February 09, 2016

The IRS took my federal refund for a mistake that I made. Will they take my state also for the balance I owe?

I asked for payment plan with the IRS, but they took refund instead.

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  Answers  |  3

May 26, 2016

Do you have a CPA?

$commenter.renderDisplayableName() | 04.24.18 @ 21:00

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May 26, 2016

HI Birdyt052,

That is certainly a possibility. When you asked for a payment plan, did you actually make a good faith payment with your request and have you made financial arrangements to secure the remainder of what you owe? The IRS, like anyone, just wants the money they are owed plus interest. The IRS is very methodical. Have you discussed this with your tax advisor or tax attorney? There are also several reputable agencies that specialize in this type of situation.

You are welcome to also contact us directly to discuss your situation in greater detail. No obligation.

Its not what you make; Its what you keep that determines your lifestyle.

$commenter.renderDisplayableName() | 04.24.18 @ 21:00

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February 05, 2018

There are rules about what the IRS can and cannot do. Until a lien is filed, they cannot confiscate other funds, whether from a state refund or a checking account. You can file Form 9465 with the IRS to request a payment arrangement. There is a fee involved and the IRS charges interest on the unpaid balance. Once the installment arrangement has been accepted, the IRS will not attempt to collect from any other source. Of course, if you miss a payment, all bets are off.

$commenter.renderDisplayableName() | 04.24.18 @ 21:00

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