If i owe back state taxes. can the irs withold my refund?
I called the IRS about this because I’m in the same boat. This is what they told me. Since my account is still “open” with them, they will not garnish from me and my wife’s refund that we are due next week. They were still showing that the account was still open so we will get our full refund on Friday. I was notified in August of 2007 that I owe them $800 from 2005. I am not disputing it and have told them I will pay it once I get my refund. They only way they would have taken out what I owe them and given us the difference is if my account with them was showing what I owe them instead of showing a zero balance and being active still. Hope this helps.