Program That Offsets Tax Refunds Against Tax Debts Tightened By IRS

The Internal Revenue Service (IRS) is making changes to its procedures and computer systems in order to better identify a taxpayers outstanding tax debts and then subtract those debts from the taxpayers refund.  This new procedure will have a particular impact on the owners of small businesses.  “A new report from the Treasury Inspector General for Tax Administration found that the IRS needs to revise its computer programming and correct its procedures to ensure it identifies all available tax refunds to offset a taxpayer’s federal tax liabilities.”  This article discusses some of the details related to the changes that the IRS will be making.  Taxpayers should be aware of the rules so that they can benefit from them and avoid problems.  It is a good idea to meet with an experienced tax professional for more personalized advice.

See Michael Cohn, IRS to Tighten Program Offsetting Tax Refunds against Tax Debts, Accounting Today, April 28, 2016.