What You Need to Know About a ‘Notice of Intent to Offset’

tax season alerts

Did you know that approximately 11.23 million Americans failed to pay their taxes on time during the coronavirus pandemic? This translates to $125 billion of unpaid taxes. From the government’s point of view, a lack of revenue means it can’t invest in important national developmental programs. In an attempt to recover unpaid taxes, it sends a Notice of Intent to Offset to taxpayers who default on their payments. Taxpayers in Dallas can turn to tax lawyers like Nick Nemeth for solutions to IRS tax problems such as being the recipient of a Notice of Intent to Offset. In this blog, we are going to look at all you need to know about the IRS Notice of Intent to Offset.

What is a ‘Notice of Intent to Offset’?

A Notice of Intent to Offset is an informational letter that is sent to a taxpayer if they owe the IRS back taxes. You may also receive such a notice if you owe a significant amount of money to any other government agency. The underlying meaning of the Notice of Intent to Offset is that the IRS is currently planning to seize your tax refund. If you have received such a notice, seek expert tax help in Dallas right away.

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The Consequences of an IRS Tax Offset

In most cases, a Notice of Intent to Offset means that the government will only seize a portion of your payments or refunds. However, the amount the IRS will take depends on a number of factors. Generally, the Treasury’s Bureau of Fiscal Service (BFS) offsets the entire tax refund of a taxpayer if they owe more than the total amount of refunds. If you fail to resolve the issue early, it might lead to the IRS offsetting your future refunds as well.

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How to deal with a Notice of Intent to Offset

As with all IRS tax problems, you should take immediate action once you receive a Notice of Intent to Offset. First, make sure that every detail in the notice is accurate. The best way to do that is to verify the following information:

  • Your name
  • The amount of your federal payment or tax bill
  • The agency that’s initiating the offset notice
  • The agency’s contact information (With the rise in fraudulent attempts in the US, it is always recommended that you double-check the contact information present in the document)

Next, you must decide whether you want to fight the offset notice or allow the IRS to seize your money. It is highly recommended that you consult an experienced tax debt lawyer in your area to figure out the ideal resolution. You can easily find a seasoned Dallas IRS attorney to assist you get IRS problem resolution.

Final word

It is always recommended to file and pay your taxes in full in time to prevent the IRS from seizing your tax refunds, among a host of other potential IRS tax problems. In the event that you find yourself in a sticky situation, don’t hesitate to seek IRS problems help from an experienced Dallas IRS attorney. For all types of IRS tax problems resolution, you should look no further than the Law Offices of Nick Nemeth. We are the leading Dallas tax law firm, powered by a team of highly experienced IRS tax problems lawyers. The experts provide assistance across all IRS locations in Dallas, Texas. Simply call (972) 426-2553 or use our Contact Form to schedule an appointment.