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Can the state take my federal taxes for unemployment overpayment

Centralia, IL |

i was overpaid benifits from unemployment, however i just got a job to arrange payments will they still take my taxes

Attorney Answers 3


The Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay:

-Past-due child support
-Federal agency non-tax debts
-State income tax obligations, or
-Certain unemployment compensation debts owed a state. (Generally these are debts for compensation that was paid due to fraud or for contributions due to a state fund that were not paid due to fraud)

Hope this helps a little. But this simple answer without knowing more facts is, yes it is possible for them to take a federal refund to offset state unemployment benefits.

Christopher Larson

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Until the amount is paid back they will take your refund.

Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

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You said "to arrange payments" but have you entered into a formal agreement?

If you have, or if you will do so, check as to whether a formal agreement triggers a stop collect in Illinois.(especially as to the Federal return).

In terms of momentum, and if you have not made a blocking agreement or if you only just made one, the taking may occur if the mechanism is already set in motion.

Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.

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