Home |IRS Tax Return | Will the IRS deduct the balance amount owed due to a fraudulent return in 2022 from our 2023 tax refund, even though the case is still pending and we have not yet received a resolution for the fraudulent return issue we reported back in 2022?

Will the IRS deduct the balance amount owed due to a fraudulent return in 2022 from our 2023 tax refund, even though the case is still pending and we have not yet received a resolution for the fraudulent return issue we reported back in 2022?

Robert James, 20+ years of experience in IRS matters
Answered on September 28,2023

Yeah, unfortunately I think as long as any balance due shows up in your spouse's account the refund will automatically be taken.

Hopefully it will be resolved before you file for 2023, but if not you should contact Taxpayer Advocate Service BEFORE you file to see if they can help:

Contact Tax Payer Advocate

Also if you can adjust your withholding to get close to a zero refund, do that now. If possible try to owe a small amount like $25 or so; that way you keep control over the funds.

Tax Withholding Estimator

If you do adjust your withholding now, make sure to check it again after the New Year.

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