If an individual owes money to the federal government because of a delinquent debt, the Treasury Department can offset that individual’s federal payment or withhold the entire amount to satisfy the debt.
yesterday I noticed on my transcript I had 2 separate amount with the 846 code & 766 for interest. I called the IRS who transferred me to the Jnjured Spouse department & was told that I would only receive the first portion of the refund & the 2nd portion would go to my husbands debt. I’ve always files a injured spouse form & never received an offset. Does anyone know why? The rep told me that oh well it’s just how the funds were allocated & there’s not a debt indicator code on the 2nd amount as of yet. I’m just a little confused.