receive a IRS refund, regardless of the amount, it is always an additional help for the families’ budget. However, if there are debts to the Treasury or to a public (or private) creditor, this money may not reach your hands. However, there are some steps you can take to try to overcome these situations.
How can I find out if I have tax debts?
In order not to “get caught” off guard, the first step is to consult the Finance Portal and check if you have any debt. You must then authenticate and then access the “Citizens” area, option “Services” which is shown on the left. Next, look for the “Check Tax Debts” and the option “Tax Debts”. If you have any tax debt, you will be able to check this situation on the next screen. If you realize that failed to pay a tax or forgot to pay a fine, rectify the situation as soon as possible, so as not to jeopardize your IRS refund. Thus, you can settle debts through traditional means of payment, with an ATM reference or in person at a Finance branch, for example. You can always avoid these situations regularly consulting your tax situation, in addition to electronic notifications on the Finance Portal. As a general rule, whenever there are outstanding debts or payments, such as an IRS installment or payments on account, for example, an electronic notification is issued. If in doubt, contact the e-Balcão or go to Finance. Also read: IRS declaration jointly or separately: What pays off more?
What happens to my IRS refund if I owe Taxes?
If have outstanding debts, your IRS refund may be put on hold by Finance, in order to settle existing debts. According to a communication from the Tax Authority, “if at the time of issuing the credit there are active tax execution processes, that is, the existence of debts, the reimbursement will be applied to the payment of the same. If the amount to be reimbursed is greater than the value of the debt, the remaining amount will be refunded to the taxpayer”. In other words, if the amount owed to the Treasury is greater than the value of the IRS reimbursement, this will be used to amortize the existing debts. Otherwise, will be entitled to the remaining amount of the reimbursement, after the debts are settled. This happens because the IRS refund is considered like any other income and, as such, can be subject to attachment. If there is debts to other public or private creditors, your IRS refund may also be at issue.Also read: IRS Refund: How to Take Advantage of This Help to Your Financial Health
What if the IRS was filed together?
There’s a lot situations in which the IRS garnishment can happen. If the taxpayer has debts and the respective creditors have proof that they exist, they can trigger the necessary steps for the attachment to take place. To do so, they must use a enforcement agent or solicitor.This means that, if the IRS has been delivered with someone else (by marriage or de facto union) in which only one of the taxpayers has debts, the reimbursement continues to be subject to attachment. Even so, taking into account that this situation is not provided for by law, the courts may have different interpretations, especially due to the fact that it is unfair for the taxpayer who does not have any debts to see the reimbursement being fully pledged. attention to the fact that the attachment is done automatically. Therefore, if you have the capacity to pay existing debts, take the opportunity to settle them before the refund is issued. If you are unable to do so and have doubts about the amount pledged, you can consult it on the Finance Portal, comparing the settlement note and the simulation of your IRS declaration.
What can I do if the IRS refund is put on hold?
If the IRS refund is pledged, you can pay the amount owed, either through IRS reimbursement or another form of payment, previously agreed with the respective enforcement agent. But if you do not agree with the attachment, you can contest the decision. And there are two ways to contest the decision: through the opposition to attachmentor else to opposition to tax foreclosure. In the first case, this is appropriate when the attachment comes from private creditors who have an enforceable title. When making the statement, you must ensure that the reasons given respect what is described in article 784 of the Code of Civil Procedure. If you already choose opposition to tax foreclosure, you must file a petition with the Finance or Social Security body (to which you are a debtor), so that this situation is clarified. Pay attention, as in the first case, there are predetermined reasons you can state in your petition. Thus, these must be included in Article 204 of the Tax Procedure and Process Code. For example, if the debt has expired, if the debt has already been paid or canceled, among other reasons. You can carry out this opposition up to 30 days after notification of the execution to which it is subject, or the first attachment by Finance, in the event that there is no notification. It is important to note that the two types of opposition have associated costs, as these are legal proceedings. Thus, you always have to pay court fees, which can vary significantly according to several parameters, namely the pledged amount in question, the type of opposition and the debtor’s history. extra
I have to pay IRS, can I pay in installments?
In case you need pay your debts in installments, you must make a request on the Finance Portal. Even so, this application assumes that there is an analysis of your economic situation, in order to prove that you are unable to fully pay the debt within the required deadlines. After authenticating on the Portal, look for “Provisional Plans” in the search bar. With payments still in progress, you have the possibility to register and simulate the order. The number of installments will depend on the amount of the debt, the economic reason and the justification or motive. After completing the order, You will receive, every month, an electronic notification reminding you to make the payment.It should be noted that, in the case of have no debts, and choose to pay in installments, Finance considers that your situation is regularized. And so, benefits or support that require up-to-date taxes are not affected. Also read: Tax offense process – what are the deadlines and penalties? The information contained in the article is not binding and does not invalidate the full reading of documents that support the matter in question.
A professional writer by day, a tech-nerd by night, with a love for all things money.