Owe money to IRS?

Question

My father has just filled out his taxes for the year of 2007. He is supposed to be receiving a refund from his taxes, but he owes money to the IRS from a couple years ago. Does the IRS take his refund money and subtract it from his debt or does he still have to pay the money seperately?

Answer 1

They will apply any refund (and his stimulus rebate) to the outstanding debt.  If that pays off the debt in full, he'll get whatever is left over.  If not, he must still make arrangements to pay the balance.  If he's already on a payment plan, he must continue to make his payments until the debt is paid in full.

Answer 2

im not sure but my parents are in debt problems from that irs!!!!!!!!!!!

now my moms gonna get a job!

Answer 3

IRS will offset his refund to his debt.  If the refund full pays the amount owed and their is any remaining balance on his refund it will be issued to him.

IF you father still owes after his refund is offset he really needs to set up an installment agreement before IRS garnishes his wages or issue levies on his wages and bank account.

Use form 9465 Installment Agreement Request to request the installment agreement.  You can find out how much he owes and divide the amount owed by 60 months and that will be the minimum payment IRS will except for the amount he owes. for balance due up to $1499.00 the minimum payment IRS will accept is $25.00

IF the balance due is over 25K the submit form 9465 and Form 433F Collection Information statement.