IRS will cancel refunds to individuals in the United States who do not meet these requirements in their tax return
Debts with various government agencies can become the main reasons for not receiving a refund.
More information: The way in which the IRS can carry out an embargo in the United States due to a tax failure
The tax season has started in the United States, causing millions of people who have already filed their respective tax returns to eagerly await the refunds that the Internal Revenue Service (IRS) carries out during this period.
However, even after going through a correct tax process, there are several cases in which the IRS has the authority not to deliver the corresponding refund. According to the agency, having debts with various government organizations can be one of the main reasons to reduce the amount of a refund or even cancel it.
But, what are the other reasons why the IRS may not grant a refund?
The reasons why the IRS may withhold a refund
According to the IRS, there are four specific cases or conditions under which taxpayers will not receive their refunds:
Debts owed to government organizations
Having a student loan or other type of federal debt with government agencies can be one of the reasons for not receiving a refund from the IRS. Furthermore, according to the same agency, the possible refund could be directly applied to cover the taxpayer's outstanding debt.
Contributors with outstanding child support payments
Similar to individuals with debts to government organizations, taxpayers with overdue child support payments may also cancel a refund process. Likewise, following the previous example, the IRS has the authority to use the refund amount to pay the child support bill.
Unemployment compensation debts
Receiving unemployment benefits, mostly offered at the state level, can also be a reason for not receiving the IRS refund for tax declaration. As in the previous cases, the resulting amount can be directed straight towards covering this debt.
State income tax liabilities
Tax refunds can also be affected by state-level debts.
To carry out these deductions, the IRS relies on the Treasury Offset Program (TOP). This system allows the agency to deduct outstanding debts directly from IRS refunds.
In case of an irregular reduction or a total cancellation of the refund, the IRS recommends contacting directly their advisors to clarify the situation.
*This article has been translated automatically using artificial intelligence
