Will the IRS intercept my California State tax refund if I owe them taxes from previous years and have an installment agreement?

Asked over 1 year ago - Auburn, CA

Live and work in california. Owe taxes from the last 3 years

Attorney answers (3)

  1. David Aaron Wiesen


    Contributor Level 13


    Lawyers agree

    Answered . You should expect that they will intercept but I have seen people who owe large amounts for previous years get large refunds. Being in an installment agreement only prevents collection via levy and wage garnishment.

    If anyone has had a difference experience I hope they will share.

    Good luck with your situation.

    Postings provided on this forum are informal and do not establish an attorney client relationship. To discuss... more
  2. Steven S Chung

    Contributor Level 4


    Lawyers agree

    Answered . I agree with David Wiesen's answer.

    If this is an issue, you should consider reducing your withholdings or quarterly estimated tax payments. See your tax advisor to determine the best way to do this without incurring a tax bill in the future.

    Otherwise, the refund offset will only help you pay the delinquent tax faster.

  3. Phillip Monroe Smith

    Contributor Level 18


    Lawyers agree

    Answered . I checked on this earlier this year and was informed by a tax employee of the State of California that there is not agreement with the IRS to allow the IRS to intercept refunds.

    Good luck!
    Phillip M. Smith Jr.
    Los Angeles Tax & Business Attorney
    Licensed in the United States Tax Court
    Main: 323-292-4116 ❘ Cell: 562-505-1004

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more

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