Will your tax rebate check be intercepted if you owe IRS money?

Last Revised on November 23, 2010

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If someone owes the IRS some money, can he still get his tax rebate check? Most likely not. Here is the reason why:

United States government has a Treasury Department that runs a program called the TOP, short name for Treasury Offset Program. It allows IRS to intercept tax refunds on behalf of both the federal and state of person who has been delinquent with paying taxes. FMS, the Financial Management Services, usually sends you a letter of upcoming refund interception after the back taxes has been processed. To find out if your check will be intercepted or has been interception, you have to contact them.

IRS can’t tell you the specific dollar amount you owe nor to whom you owe the debt. It’s the FMS job. The biggest problem with the FMS is the if an incorrect amount of money is seized during the interception, the delinquent taxpayer has to contact the lender since FMS won’t deal with it.

It is same with the back child support payments. With the property taxes, the county handles it. However, if you don’t pay property taxes, your house can be seized. The IRS will help the tax delinquent pay off the obligations automatically by intercepting the rebate checks. Therefore, the rebate will most likely be delayed as a result, and it will be diminished as well.

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3 Responses to “Will your tax rebate check be intercepted if you owe IRS money?”

  1. hannah fraire Says:
    November 23rd, 2010 at 8:37 am

    Yes, I read an article this morning about that exact same thing on msn money today.

  2. Been there, done that: Ex Delinqueny Says:
    November 23rd, 2010 at 8:37 am

    You shouldn’t waste a lot of time checking the mailbox looking for it, that’s for sure. And yes, Internal Revenue Service will deduct the exact amount of money you owe. I am not sure how they process all these back taxes, it’s just crazy.

  3. wjs-FMS Says:
    February 21st, 2011 at 9:38 am

    Im not sure what I would owe for and the amount. Could it be like retail stores debts or utility bills or what?? Please help. thank you

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