If you can't pay your taxes in full, the IRS will work with you. But you should know that back taxes or certain past due debts can reduce your federal tax refund. The Treasury Offset Program can use all or part of your federal refund to settle certain unpaid federal or state debts. Here are five facts to know about tax refund offsets.

  1. Bureau of the Fiscal Service. The Department of Treasury's Bureau of the Fiscal Service, or BFS, runs the Treasury Offset Program.
  2. Offsets to Pay Certain Debts. Past due federal tax debt may reduce your tax refund. The BFS may also use part or all of your tax refund to pay certain other debts such as:
    • Past-due child and parent support.
    • Federal agency non-tax debts, such as a delinquent student loan.
    • State income tax obligations.
    • Certain unemployment compensation debts owed to a state.
  3. Notified by Mail. The BFS will mail you a notice if it offsets any part of your refund to pay your debt. The notice will list the original refund and offset amount. It will also include the agency that received the offset payment. It will also give their contact information.
  4. How to Dispute Offset. If you wish to dispute the offset, you should contact the agency that received the offset payment. Do not contact the IRS.
  5. Injured Spouse Allocation. You may be entitled to part or all of the offset if you filed a joint tax return with your spouse. This rule applies if your spouse is solely responsible for the debt. To get your part of the refund, file Form 8379, Injured Spouse Allocation.

Health Care Law: Refund Offsets and the Individual Shared Responsibility Payment

The law prohibits the IRS from using liens or levies to collect any individual shared responsibility payment. However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund that may be due to you.

Additional IRS Resources:

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Upcoming Tax Dates

June 10 — Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the first 15 days of May.

June 12 — Employees who work for tips
If you received $20 or more in tips during May, report them to your employer Details

June 14 — Regular method taxes
Deposit the tax for the last 16 days of May.

June 15 — Individuals
If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 and pay any tax, interest, and penalties due. If you want additional time to file your return, file Form 4868 to obtain 4 additional months to file Details

June 15 — Individuals
Make a payment of your 2017 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the second installment Details

June 15 — Corporations
Deposit the second installment of estimated income tax for 2017 Details

June 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in May

June 15 — Nonpayroll withholding
If the monthly deposit rule applies, deposit the tax for payments in May.

June 27 — Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the first 16 days of May.

June 29 — Regular method taxes
Deposit the tax for the first 15 days of June.

June 30 — Wagering tax
File Form 730 and pay the tax on wagers accepted during May.

June 30 — Floor stocks tax for ozone depleting chemicals
(IRS No. 20). Deposit the tax for January 1, 2017.

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