The average taxpayer gets a tax refund of about $3,200 because they have too much tax withheld during the year, pay too much estimated tax, and/or benefit from various tax credits.

If the IRS owes you a refund, you probably expect that the full amount will be paid to you when the IRS processes your tax return. After all, it’s your money. Right?

Wrong. The Treasury Department can and does deduct from your tax refund certain types of debts owed to various government agencies. The government calls such a confiscation a “tax refund offset.”

The federal Treasury Offset Program (TOP) is run by the Department of the Treasury Bureau of the Fiscal Service (BFS). Whenever you receive a payment from a federal agency—including a federal income tax refund—it is processed by BFS. BFS is not part of the IRS.

If you owe any of the following types of debts, the creditor agency can notify ... Log in to view full article.