En esta noticia
The Internal Revenue Service (IRS) of the United States details on its official website the circumstances in which a taxpayer may receive a refund smaller than initially expected.
The reductions can be made for different situations, depending on each particular case, whether due to adjustments made to the return or because of certain outstanding debts.
Reasons why IRS can cut a refund: the complete list
The reduction may occur due to different circumstances such as
- Mathematical errors: there are problems with the addition, subtraction, or the data entered in the return
- Tax credits for which one is not eligible: for example, claiming the Child Tax Credit without meeting the corresponding requirements
- Outstanding federal taxes: there are taxes owed from previous years, since the refund may be used to fulfill this obligation
- Miscalculating estimated taxes: the refund may be affected when less than what was due was paid during a year
- Overdue child support: certain outstanding debts for child support may be deducted from refund money
- Non-tax debts with federal agencies: the deduction may be for outstanding federal government agencies.
- State income taxes: a state tax debt can cause a deduction
- Certain state debts for unemployment compensation: some obligations related to this type of benefit may also be deducted
Important information about refund reductions
Not all deductions are made directly by the IRS. When there is an outstanding debt, the Bureau of the Fiscal Service of the Treasury Department steps in.
The BFS issues IRS refunds and is authorized by Congress to administer the Treasury Offset Program (TOP) through which refunds can be used to pay off debts.
In the event that a deduction is made from these payments, IRS will let you know. “We will send you a notice with the details of how your refund was applied,” it states.