Who can garnish federal tax refunds?

Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt….Nontax federal debts

You’re current with your federal income tax obligations.
You have $3,000 in past-due Stafford loan payments.
You owe $2,000 in past-due child support.

Can a tax return be seized by the IRS?

Through a Disqualified Employment Tax Levy, the IRS can seize assets without warning. This only applies to payroll taxes and only in situations where you have appealed a prior assessment in the last two years.

Can a federal contractor be seized by the IRS?

If you are a federal contractor, the IRS can seize payments without giving you 30-days notice. If the IRS believes it may not be able to collect the tax debt, it can use a “jeopardy levy” to seize assets without warning. The IRS can seize state tax refunds without giving you notice.

Can a IRS seize your house if you owe money to your spouse?

Unfortunately, yes, the IRS can seize your house or assets, even if your spouse is the one who owes money to the IRS. This only happens if the debt was incurred during a year where you filed jointly on your tax return.

Can a spouse get a tax refund from the IRS?

If you’re married and file a tax return jointly with your spouse, the IRS can seize your portion of the refund even if your spouse is the one who owes an outstanding debt. If you use married filing separately as your filing status, you don’t have to worry about that.

When does the IRS seize an injured spouse refund?

Injured spouses. The responsibility for that debt is his alone, but his spouse will suffer—be “injured,” in other words—when the IRS seizes the refund. The same thing can happen if one spouse has defaulted on a federal student loan for which only she is responsible for repayment, and the couple’s refund is seized as a result.

How can I avoid having my tax refund seized?

If your spouse owes a tax debt and you want to avoid having your part of a joint refund seized, file an injured spouse claim using Form 8379, Injured Spouse Allocation. This form makes the case to the IRS that you paid your share of taxes.