Refund Offset Frequently Asked Questions A Federal Offset is the forwarding of any or all of a taxpayer's Federal income tax refund to the North Carolina Department of Revenue to satisfy an outstanding liability. A State Offset is the forwarding of any or all of a taxpayer's State income tax refund to satisfy an outstanding State tax liability. It can also be sent to another state or federal agency that has a claim against the taxpayer. Federal Refund Offset State Refund Offset Federal Refund Offset : Common Questions What actions can I take to avoid a federal offset? My spouse and I filed a joint federal tax return and our refund was offset for a debt that my spouse owes. How can I get my portion of the refund back? I have been notified by a tax preparer that I cannot have a Refund Anticipation Loan because the NC Department of Revenue has a claim against my federal refund. What action should I take? What happens if after the NC Department of Revenue receives my federal refund it overpays my account? If I have filed bankruptcy, will my refund be offset? What actions can I take to avoid a federal offset? To avoid the federal offset, the taxpayer must take one of the actions described below within 60 days from the date of the certified Notice of Intent to Offset. Pay The Debt: The taxpayer must pay the full amount listed on the Notice of Intent to Offset. If payment is made after the "Interest Through Date" specified on the notice, please call 877-252 3252 for the updated amount. Payments can be made by using debit/credit card (MasterCard/Visa) or bank draft via the Department's online payment system, or by contacting an agent at (877) 252-3252. The Department also accepts personal checks, money orders and official bank checks/cashier checks; cash is not accepted. Garnishment and Payment Processing Unit NC Department of Revenue PO Box 27431 Raleigh, NC 27602-1168 Mail payments along with the coupon at the bottom of the notice to: When paying in person at your local service center, you may use debit/credit cards (MasterCard/Visa), bank draft, personal checks, money orders and official bank checks/cashier checks; cash is not accepted. Bankruptcy: For more information or questions, review the Bankruptcy Frequently Asked Questions page. My spouse and I filed a joint federal tax return and our refund was offset for a debt that my spouse owes. How can I get my portion of the refund back? The taxpayer must complete IRS Form 8379 from the IRS website, call the IRS at 1-800-829-3676 or visit their local IRS office. I have been notified by a tax preparer that I cannot have a Refund Anticipation Loan because the NC Department of Revenue has a claim against my federal refund. What action should I take? The taxpayer may call 1-877-252-3252 to verify the amount owed to the Department of Revenue. Tax preparers should submit the taxpayer's tax returns without the refund anticipation loan. When the refund is offset, the taxpayer will be notified regarding the amount of refund subject to offset. What happens if after the NC Department of Revenue receives my federal refund it overpays my account? If all of a taxpayer's accounts are in balance with the NC Department of Revenue and there are no active accounts with other State agencies, the overpayment will be refunded to the taxpayer. If I have filed bankruptcy, will my refund be offset? For more information or questions, review the Bankruptcy Frequently Asked Questions page. top of page State Refund Offset: Common Questions I received a notice that my state refund was forwarded to another agency. Who should I address my questions to? If I have filed bankruptcy, will my state refund be offset? I received a notice that my State refund was forwarded to another agency. Who should I address my questions to? Any questions or issues must be resolved with the agency receiving the refund offset. That agency’s contact information should be listed on the notice. If I have filed bankruptcy, will my state refund be offset? For more information or questions, review the Bankruptcy Frequently Asked Questions page. top of page
Refund Offset Frequently Asked Questions A Federal Offset is the forwarding of any or all of a taxpayer's Federal income tax refund to the North Carolina Department of Revenue to satisfy an outstanding liability. A State Offset is the forwarding of any or all of a taxpayer's State income tax refund to satisfy an outstanding State tax liability. It can also be sent to another state or federal agency that has a claim against the taxpayer. Federal Refund Offset State Refund Offset Federal Refund Offset : Common Questions What actions can I take to avoid a federal offset? My spouse and I filed a joint federal tax return and our refund was offset for a debt that my spouse owes. How can I get my portion of the refund back? I have been notified by a tax preparer that I cannot have a Refund Anticipation Loan because the NC Department of Revenue has a claim against my federal refund. What action should I take? What happens if after the NC Department of Revenue receives my federal refund it overpays my account? If I have filed bankruptcy, will my refund be offset? What actions can I take to avoid a federal offset? To avoid the federal offset, the taxpayer must take one of the actions described below within 60 days from the date of the certified Notice of Intent to Offset. Pay The Debt: The taxpayer must pay the full amount listed on the Notice of Intent to Offset. If payment is made after the "Interest Through Date" specified on the notice, please call 877-252 3252 for the updated amount. Payments can be made by using debit/credit card (MasterCard/Visa) or bank draft via the Department's online payment system, or by contacting an agent at (877) 252-3252. The Department also accepts personal checks, money orders and official bank checks/cashier checks; cash is not accepted. Garnishment and Payment Processing Unit NC Department of Revenue PO Box 27431 Raleigh, NC 27602-1168 Mail payments along with the coupon at the bottom of the notice to: When paying in person at your local service center, you may use debit/credit cards (MasterCard/Visa), bank draft, personal checks, money orders and official bank checks/cashier checks; cash is not accepted. Bankruptcy: For more information or questions, review the Bankruptcy Frequently Asked Questions page. My spouse and I filed a joint federal tax return and our refund was offset for a debt that my spouse owes. How can I get my portion of the refund back? The taxpayer must complete IRS Form 8379 from the IRS website, call the IRS at 1-800-829-3676 or visit their local IRS office. I have been notified by a tax preparer that I cannot have a Refund Anticipation Loan because the NC Department of Revenue has a claim against my federal refund. What action should I take? The taxpayer may call 1-877-252-3252 to verify the amount owed to the Department of Revenue. Tax preparers should submit the taxpayer's tax returns without the refund anticipation loan. When the refund is offset, the taxpayer will be notified regarding the amount of refund subject to offset. What happens if after the NC Department of Revenue receives my federal refund it overpays my account? If all of a taxpayer's accounts are in balance with the NC Department of Revenue and there are no active accounts with other State agencies, the overpayment will be refunded to the taxpayer. If I have filed bankruptcy, will my refund be offset? For more information or questions, review the Bankruptcy Frequently Asked Questions page. top of page State Refund Offset: Common Questions I received a notice that my state refund was forwarded to another agency. Who should I address my questions to? If I have filed bankruptcy, will my state refund be offset? I received a notice that my State refund was forwarded to another agency. Who should I address my questions to? Any questions or issues must be resolved with the agency receiving the refund offset. That agency’s contact information should be listed on the notice. If I have filed bankruptcy, will my state refund be offset? For more information or questions, review the Bankruptcy Frequently Asked Questions page. top of page
