Taxpayers with outstanding federal tax debt may be subject to the IRS tax offset program. It allows the IRS to use federal refunds to cover unpaid taxes and other debt, such as child support. The Treasury Inspector General for Tax Administration (TIGTA) recently reported on the program. From tax years 2020–2022, nearly $40.1 billion was offset to satisfy unpaid tax debts. However, millions of dollars slipped through the cracks and were refunded in error. The report found errors were primarily due to manual processing or failures to correctly identify tax debts. TIGTA’s recommendations include updating internal guidance and enhancing IRS training. Here’s the report: https://bit.ly/4iK8SGr
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