Rules Regarding Tax Refund Offsets
Beginning in 1999, the IRS has changed the way it handles non-tax debts when
there is an overpayment of taxes. The IRS no longer maintains non-tax debts.
Instead, when there is an overpayment, the IRS will defer to the Treasury
Department's Financial Management Services (FMS) which is now responsible for
offsetting past due, legally enforceable non-tax Federal debts and delinquent
child support agains tax overpayments. The FMS will send a notice to the
taxpayer's address, advising of the offset.
Since FMS does not have access to the IRS's Centralized Authorization File, the
FMS will not issue a notice to a taxpayer's representative. To obtain
information from FMS about a tax refund offset for a client, taxpayer
representatives must file FMS Form 13, Authorization for Release of
Information. FMS will not accept IRS Form 2848, Power of Attorney, or Form
8821, Tax
Information Authorization.
You can obtain FMS Form 13 from the
Treasury Department's Tax Refund Offset website.
It is also available by fax from FMS's fax-on-request service at (202)
874-8616 image number 13. The FMS help desk must have a completed Form 13 on
file prior to speaking to a taxpayer representative regarding a tax refund
offset for a particular taxpayer.
For more information, eMail:
taxinfo@electrofile.com
All information provided is general in nature and intended to create awareness,
not to address the specific circumstances or concerns of any individual or
entity. Although we try to provide correct and timely information, we cannot
guarantee the accuracy of any information or that such information will
continue to be accurate in the future due to the changing nature of the tax
laws. Before acting on any of the information provided here, you should consult
with a professional advisor who knows all of the unique facts and circumstances
pertinent to your particular situation.