All About Tax Return
  • January 20, 2023
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If you have received a reduced refund from the Internal Revenue Service (IRS), chances are you are confused about why this happened in the first place. Generally, if you receive a reduced refund, the IRS itself or a Financial Management Service (FMS) is behind the move. The refund is generally received to cover overdue child support, unpaid federal agency non-tax bills, unpaid state income taxes, or unpaid state unemployment compensation debts. In case any organization filed a claim against your debt, an FMS will deduct the necessary amount from your refund to settle the claim. You will receive the balance (if any) by cheque or direct deposit. Within two weeks of the issuance of a check or direct deposit, the IRS typically sends a letter. The amount of the offset and the amount you’ll receive after the offset are both specified in the letter. If you think your refund has been wrongfully reduced, you can reach out to the IRS with the assistance of an IRS tax attorney. If you reside in Dallas, experienced IRS tax attorneys are readily available in Fort Worth, TX. However, before you do that, it helps to know some basic information about a reduced refund. Blog Related Post: How Tax Debt Can Impact Unemployment Tax Refunds

Reasons for reduced refund

Here are the most common reasons why the IRS may issue a reduced refund in your bank account:
  • Past-due child support;
  • Federal agency non-tax debts;
  • State income tax obligations; or
  • You owe certain unemployment compensation to the state. These may include:
    1. Compensation paid due to fraud
    2. Contributions owing to a state fund that wasn’t paid

How to request your refund shortfall from the IRS

In normal circumstances, the BFS (Bureau of the Fiscal Service) will notify you if an offset happens. The notice will include the initial refund amount, your offset amount, the receiving agency’s name, contact information, and address. Once the due date for your refund has passed, the BFS will inform the IRS of the amount deducted from your refund. If you disagree with the amount deducted from your return, or think you don’t owe the bill, get in touch with the agency listed on the notice. Only if your original refund amount on the BFS offset notice differs from your tax return’s refund amount should you contact the IRS. It always helps to seek tax help from a registered IRS tax lawyer. When looking for tax attorney help, make sure that you only hire one with a plethora of experience in the field. With so many tax attorneys in Fort Worth, TX, always go with one that has a proven track record. Blog Related Post: Veterans Can Now Claim a Refund on Taxes Paid on Disability Severance

Injured Spouse Claim

You have the right to request the IRS for your share of the refund if you filed a joint return and are not liable for your spouse’s debt. You should submit Form 8379, Injured Spouse Allocation, to claim the refund. Any of the following methods may be used to submit Form 8379:
  • With your original joint tax return (Form 1040 or Form 1040-SR),
  • With your amended joint tax return (Form 1040-X), or
  • By itself, after you receive notification of an offset.
It can take 11 weeks for an electronically filed return or 14 weeks for a paper-filed return to be processed if you submit Form 8379 together with your original return. On the other hand, processing will take around 8 weeks if you submit Form 8379 after a joint return has already been processed.

Final Word

Receiving a reduced refund can be confusing for any taxpayer. If you are facing such a situation, it’s recommended that you hire a qualified IRS tax attorney. When looking for an experienced Fort Worth tax lawyer, look no further than the Law Offices of Nick Nemeth. Your search for a “tax lawyer near me” ends here. Our team of reputable Fort Worth tax attorneys is here to assist with a range of IRS tax problems. To learn more about how a tax lawyer in Dallas, TX, can help resolve your tax problems, call (972) 426-2553, or fill out our Contact Form, and we’ll take it from there.
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What Our Clients Have to Say

Brent VahleBrent Vahle
19:13 02 May 24
I called to see if they could help reduce some penalties and fees. The person I spoke with told me it might be counterproductive for them to take my case since their feels would likely equal the amount of penalty/interest abatement. I decided to pass on moving forward but was so happy to hear a legal team, or any business for that matter, who has that much integrity. I feel most others would likely try to take my money anyway. I hope I never have to go through this again, but if I do, I will definitely use the Law Offices of Nick Nemeth!
Jason WinkleJason Winkle
18:44 02 May 24
Jaime Flores was very friendly, professional, and knowledgeable. She gave me some very valuable information which helped guide me with a plan of action. The free consultation is very much appreciated.
Matthew SwigartMatthew Swigart
12:14 02 May 24
Great attorney who was able to provide quick and useful advice. Although my situation did not warrant their services, they still took the time to discuss solutions I could explore. I highly recommend visiting this office!
Tony PantojaTony Pantoja
12:57 09 Apr 24
Very professional and very knowledgeable, Jamie Flores was very straight forward and professional, a firm that doesn’t just take your money, Thanks
Carla AtwalCarla Atwal
10:52 02 Apr 24
Nick was wonderful in guiding me with direction on some tax questions I had. He was concise, and to the point, and was happy to provide general info to me at no charge. I truly appreciate him and would highly recommend him.
Miguel AlvaradoMiguel Alvarado
15:56 25 Mar 24
By far the best attorneys I have ever worked with. They’re are very helpful and supportive from day one. They went above and beyond to make sure all my documents were submitted on time and gave updates as soon as they received them. I cannot name a single flaw in their work. Their team of assistants are very professional and seem to all be on the same page. I’ve made multiple phone calls and sent a ton of emails to their staff and they were able to help me all through the course of the case. I cannot express my gratitude enough for how excellent they handled my case.
Lucy FoyLucy Foy
06:55 19 Jan 24
My first appointment I had with, Tax Attorney Nick Nemeth, gave me such a sense of relief. He listened and gave me his professional advice, Mr Nemeth took my case. I was well kept updated, by phone calls and letters. That really impressed me and gave me so much confidence in them. The case went on for a couple of months. The day I received the call from one of his team members Kyle, informing me that the case was resolved and that I owed absolutely nothing to the IRS, I was overwhelmed with joy. I would recommend this law firm to anyone that needs help, with any tax issue. Thank you, to the Law Firm of Attorney Nick Nemeth and his team.
Bradley RunyonBradley Runyon
20:17 13 Jan 24
I received a tax bill in the mail from the IRS last year in 2023. The fees and penalties I owed were something I myself could not afford. I reached out to Nick Nemeth's firm and received the best experience you could imagine. The team was professional, educational, and fast. If you have a tax issue with the IRS using another firm other than Nick Nemeth's would be an error in judgment. I would recommend their services above others.
Sue HulsemanSue Hulseman
19:55 11 Jan 24
Working with Nick Nemeth and his team to resolve my debt with the IRS was the best decision I could have made. I felt such relief knowing I didn’t have to deal with the IRS myself. They did a wonderful job and were responsive to my questions and kept me abreast of my case. My outcome was exactly what I was hoping for. I strongly recommend using them if you have an issue to resolve with the IRS.
20:53 21 Dec 23
I had an incompetent tax preparer, who also ignored several notices from the IRS, which in the end resulted in a lien on my property. I did not know what to do and an attorney friend recommended that I contact the Nick Nemeth Law Offices. I met with Jamie Flores and Ivan Nalbantov in December 2021 for a free consultation, and right away was impressed by their thorough examination of my paperwork and extensive knowledge of IRS tax laws. I felt not pressured and appreciated their advice and in the end decided that I would pursue resolving the issue by myself. I paid the IRS Civil Penalty and, as recommended also submitted a letter to the IRS requesting a refund and explaining what happened. I am glad to report that my persistence finally paid off. My case took two years to resolve and I finally received a full abatement/refund check from the IRS in December 2023. I could not have done this without the straightforward recommendation of Jamie and Ivan; and I highly recommend the Nick Nemeth Law Offices to anyone needing help with the IRS.
Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
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