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Will I receive my tax refund if I owe taxes?  Will I receive my refund if I have certain types of debts.  These are questions an individual may ask their tax attorney or tax professional.  The IRS can keep your tax refund and apply your refund to certain debts.  The article below has been drafted by a tax attorney at The McGuire Law Firm to provide some general information regarding the questions above.

If you owe taxes to the Internal Revenue Service, the IRS will keep your 1040 refund and apply the refund to the tax debts.  The IRS can keep all of your refund if the amount of tax owed exceeds your refund, or keep a portion of the tax refund if such portion satisfies your tax liability.  You can verify application of your refund to the period or periods of tax debt by obtaining your IRS tax transcripts for the periods of which you owe the tax.  The transcripts should show a credit for the monies applied to such period from your refund.  The transcript will likely state something such as “Credit Transferred 12/31/2013.”  This means your 2013 refund was applied to the period there was a liability.  You should check the IRS records and make sure you receive credit for your refund.  Further, the IRS should issue you a notice stating the application of your refund.  The notice should state, the amount of the refund applied, the year or tax period the refund was applied too and the remaining balance, if any for the tax period(s) the refund was applied too.

Additionally, the IRS can keep your tax refund if you have other debts.  Debts such as student loans, past due child support and state income tax can be paid with your federal tax refund. You should receive notice stating the type of debt, amount of debt and the portion of your federal income tax refund that was applied to your debt.  Form 8379, Injured Spouse Allocation can be filed under certain circumstances for one spouse to receive a portion of the refund, but the spouse receiving a portion of the refund must have no liability.

The IRS can also levy your state income tax refund if you owe taxes to the IRS and have not established a formal agreement.

You can contact The McGuire Law Firm to speak with a Denver tax attorney regarding your tax matters, problems, issues or questions.  The McGuire Law Firm represents both individual and business taxpayers before the IRS, and assists individuals and businesses regarding other tax questions and issues.

Schedule a free consultation with a tax attorney at The McGuire Law Firm- offices in Denver Colorado and Golden Colorado!  Call or email today!  720-833-7705.

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