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I think I posted this last night in the wrong area… I’ll try to delete the duplicate!
So this is a part offset, part code scenario… In 2011 I had fairly large balance due to the IRS. State and fed refunds were offset the following year, which is all well and good- took care of most of it thru the offsets. Then my husband and I started actually making money… no more refunds to offset to pay down 2011’s balance. IRS sent “Intent to Levy” letters after taking my 2013 state return. THEN NOTHING EVER HAPPENED FOR 2 YEARS!! Then in January 2015— they post code 530 “Account balance not currently collectable” on my 2011 transcript. Ooookkay. Then April 2015 (3 months later) they offset (with Code 706) my 2015 state refund to COLLECT on my NON-COLLECTABLE 2011 balance. This is all laid out in my 2011 transcript that I’m just now able to decipher… thanks IGMR!! But still, can the IRS offset a state refund to apply it to a non-collectable balance? hopefully this made sense… wish I could post a screen shot, that transcript is crazy!
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