Unemployment tax question, please help

[Krystal]

I have a question regarding my brothers tax return.

he owes unemployment for the last 7 years and didn’t know about it up until a few months ago. I guess the unemployment that was overpaid is now in collections and has been there for a long time now. Can his refund be taken where it’s been so long?

[Jennifer Starr]

There is a statute of limitations on some debts for offsets, I don’t believe unemployment is one of them. Have they been offsetting his refund for the last 7 years or have they just started? Unless his refunds are very small, I can’t see it taking 7 years to repay an unemployment overage. Also, just because he owes the offset, doesn’t mean they are actively pursuing it, or that the IRS will allow it. My husband and I have an offset from the State of Illinois, it is on there every year, however, the IRS is disallowing it. So basically, unless we move to Illinois and they can seize a State refund, they won’t get a dime. I would suggest calling the offset number, finding out exactly what is on there and calling the creditor they list and see if they are pursuing an offset. Sometimes they just don’t if a payment arrangement is being made and kept.

[TaxCane10]

They will continue to garnish his tax returns until the amount is paid in full no matter how long it is. This would have happened even if he had been making payments throughout the year. As long there is a balance owed they will garnish his returns. When they finish processing his returns, he will received a notice about the garnishment (offset).

[Brett]

Should have gotten a letter about an offset and it should have it on the bottom of wmr site had an offset last year sure as shit state dipped in and took it no questions asked

[Semi Smart]

If they offset it they will take it… doesn’t matter how long it has been! He needs to call the irs offset hot line…

[Author]

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