Offset Disalowed

[Jennifer Starr]

So, every year I have an offset from the state of Illinois, I have not lived in Illinois for 5 years. This year, I actually called the state to ask them what it was all about. The guy I talked to said that they were not actively pursuing the offset because the IRS had disallowed it. I didn’t know something like that could happen. So if they know the IRS will not allow the offset, and they are not actively pursuing it, why does it go on there every year? It has prevented me from getting the refund advance every year, is there any way I can protest that and make them take it off? The offset is for supposedly owing taxes to Illinois in a year that I didn’t live there, I assume that is why the IRS has disallowed it.

[Jennifer Starr]

@chantas78 It’s not the IRS that I owe, it is supposedly the State of Illinois. They said we didn’t file our tax correctly for a certain tax year and that with interest and penalties, we owe X amount. The problem is, we didn’t live in Illinois for that tax year, haven’t lived in Illinois for several years. The State said they aren’t actively pursuing it, the Feds say they can’t have it, but the won’t take the offset off our records until we pay it.

[Chantas78]

@ Jenn
Not sure if this is what you meant? But this is what I found online:
https://taxpayeradvocate.irs.gov/get-help/currently-not-collectible
Hope it helps

[Jenn]

I am following this thread bc I am currently in an unable to collect status.I have never heard of this and am not even really sure what it means. Anyone ever dealt with this before? Does this mean they are not actively trying to collect with their threatening letters, garnishments, etc and will offset my refund or does this mean they cant collect for some reason. I cant imagine any reason the IRS wouldn’t be able to collect. Any advise appreciated.

[B]

Me too

[Koko]

I wish I could help and I’ll be watching this thread because of a similar situation. I have an IRS tax debt that is currently not collectable because I’m appealing it. I got my federal return last year and I will get it this year but the state of ohio has kept my ohio refund because of this debt that is not collectable per the IRS. I would love to know how to stop it.

[Author]

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