IRS frequently asked questions:

Top Frequently Asked Questions for IRS Procedures

What is the status of my refund?

Where's My Refund?

Use this tool to check your refund. Your refund status will appear around:

• 24 hours after you e-file a current-year return
• 3 or 4 days after you e-file a prior-year return
• 4 weeks after you file a paper return

Check your refund

Information is updated once a day, overnight. Where’s My Refund is unavailable each morning, generally between 4-5 a.m. Eastern time, while we make these updates.

What you need

• Your Social Security or individual taxpayer ID number (ITIN)
• Your filing status
• The exact refund amount on your return

Prefer a mobile app? You can also check your refund with IRS2Go.

Find your tax information in your online account or get a copy (transcript) of your tax records.

To check an amended return, visit Where's My Amended Return?

How it works

Where's My Refund shows your refund status:

• Return Received – We received your return and are processing it.
• Refund Approved – We approved your refund and are preparing to issue it by the date shown.
• Refund Sent – We sent the refund to your bank or to you in the mail. It may take 5 days for it to show in your bank account or several weeks for your check to arrive in the mail

When to call us

Call us about your refund status only if Where's My Refund recommends you contact us.

IRS phone numbers and tax help options

If your refund is delayed

Your refund may be delayed if your return needs corrections or extra review. If we need more information to process your return, we'll send you a letter.

How do I notify the IRS my address has changed?

Answer:

There are several ways to tell us your address has changed:

Methods to change your address

IRS form Use Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business

Tax return

Use your new address when you file

Written statement

Send us a signed written statement with your:

• full name
• old and new addresses
• Social Security number (SSN), ITIN, or EIN

Mail your signed statement to the address where you filed your last return.

Oral notification

Tell us in person or by telephone. We'll need you to verify your identity and the address we have on file for you. Please have ready your:

• full name
• old and new addresses
• SSN, ITIN or EIN

We may request additional information to verify your identity.

If you filed a joint return and are still residing with the same spouse, both you and your spouse should provide your names, SSNs, new address and signatures on the form or statement.

If you filed a joint return and you now have separate addresses, each of you should notify us of your new, separate addresses.

Authorized representatives filing a form or written statement to change an address for a taxpayer must attach a copy of their power of attorney or Form 2848, Power of Attorney and Declaration of Representative. Unauthorized third parties can't change a taxpayer's address.

Changes of address through the U.S. Postal Service (USPS) may update your address of record on file with us based on what they retain in their National Change of Address (NCOA) database. However, even when you notify the USPS, not all post offices forward government checks, so you should still notify us.

For changes of address relating to an employment tax return, we issue confirmation notices (Notices 148A and 148B) for the change to both the new and former address.

It can generally take four to six weeks after receipt for a change of address request to fully process.

Additional Information:

• Revenue Procedure 2010-16

Subcategory:

Address changes

Category:

IRS procedures

Can I get a transcript or copy of Form W-2, Wage and Tax Statement, from the IRS?

 Answer:

Yes, but an actual copy of your Form W-2 is only available if you submitted it with a paper tax return:

Transcript

• You can get a wage and income transcript, containing the Federal tax information your employer reported to the Social Security Administration (SSA), by visiting our Get your tax records and transcripts page. Refer to Transcript types for individuals and ways to order them and About tax transcripts for more information.
• You can also use Form 4506-T, Request for Transcript of Tax Return. Check the box for Form W-2, specify which tax year(s) you need, and mail or fax the completed form. Most requests will be processed within 10 business days from the IRS received date.
  
  Note: The IRS may be able to provide wage and income transcript information for up to 10 years. However, current processing tax year information may not be complete until the earnings are reported. This transcript doesn't include any state or local tax information reported by your employer to SSA on Form W-2. If you need W-2 information for retirement purposes, you should contact the SSA at 800-772-1213.

Copy

• If you e-filed your tax return or you didn't attach your Form W-2 to your paper return, then use one of the transcript options above. Otherwise, you'll need to contact your employer or SSA for a copy.
• The quickest way to obtain a copy of your current year Form W-2 is through your employer. Your employer first submits Form W-2 to SSA; after SSA processes it, they transmit the federal tax information to the IRS.
• If you can't get your Form W-2 from your employer and you previously attached it to your paper tax return, you can order a copy of the entire return from the IRS for a fee. Complete and mail Form 4506, Request for Copy of Tax Return along with the required fee. Allow 75 calendar days for us to process your request. We will waive the fee for taxpayers impacted by a federally declared disaster. (For more information, see Publication 3067, IRS Disaster Assistance, Federally Declared Disaster Area PDF)

See Topic 159 for additional information.

Subcategory:

Transcript or copy of Form W-2

Category:

IRS procedures

What if I entered the correct account and routing numbers, but the IRS made an error in depositing my refund?

 Answer:

Contact an IRS customer service representative to correct any agency errors by calling 800-829-1040 (see telephone assistance for hours of operation). Unfortunately, this may result in you receiving your refund by other means.

Subcategory:

Refund inquiries

Category:

IRS procedures

I lost my refund check. How do I get a new one?

 Answer:

If you lost your refund check, you should initiate a refund trace:

• Use Where's My Refund, call us at 800-829-1954 and use the automated system, or speak with a representative by calling 800-829-1040 (see telephone assistance for hours of operation).
• However, if you filed a married filing jointly return, you can’t initiate a trace using the automated systems. Call and speak with a representative to get the process started or download and complete Form 3911, Taxpayer Statement Regarding Refund PDF.

Your claim for a missing refund is processed one of two ways:

• If the check wasn't cashed, you'll receive a refund by other means once the original check is canceled.
• If the refund check was cashed, the Bureau of the Fiscal Service (BFS) will provide you with a claim package that includes a copy of the cashed check. Follow the instructions for completing the claim package. BFS will review your claim and the signature on the canceled check before determining whether they can issue you a replacement refund. The BFS review can take up to six weeks to complete.

Subcategory:

Refund inquiries

Category:

IRS procedures

I received an incorrect Form W-2. My former employer won’t issue me a corrected Form W-2. What should I do?

Answer:

If by the end of February, your Form W-2, Wage and Tax Statement has not been corrected by your employer after you attempted to have your employer or payer issue a corrected form, you can request that an IRS representative initiate a Form W-2 complaint. Call the IRS toll free at 800-829-1040 or make an appointment to visit an IRS taxpayer assistance center (TAC). 

• The IRS will send your employer a letter requesting that they furnish you a corrected Form W-2 within ten days.
• The IRS will send you a letter with instructions and Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. You can use the Form 4852 in the event that your employer doesn't provide you with the corrected Form W-2 in time to file your tax return.

Depending on the time of year, the IRS may have federal wage information in the form of a wage transcript. See Topic 159 for more information on how to get a transcript of W-2 information.

When you call the IRS or visit a TAC office, please have the following information available:

• Your employer's or payer's name and complete address including ZIP code and
• Your name, address including ZIP code, and Social Security number.

If you file your return and attach Form 4852, you’ll need to estimate the wages you earned, taxes withheld, and the period for which you did not receive or received an incorrect Form W-2. You should base the estimate on year-to-date information from your final pay stub, if possible. When filing a Form 4852 instead of a Form W-2, there may be delays processing your refund while we verify the information you gave us.

To help protect your Social Security benefits, keep a copy of Form 4852 until you begin receiving Social Security benefits, just in case there's a question about your work record and/or earnings in a particular year. After September 30 following the date shown on Form 4852 line 4, use a my Social Security online account or contact your local SSA office to verify wages reported by your employer.

If you receive a corrected Form W-2 after you filed your return with Form 4852, and the information differs from the information reported on your return, you must amend your return by filing Form 1040-X, Amended U.S. Individual Income Tax Return.

Additional Information:

• How to Correct Your Social Security Earnings Record
• Tax Topic 154 - Form W-2 and Form 1099-R (What to do if incorrect or not received)
• Tax Topic 308 — Amended returns

Subcategory:

W-2 - Additional, incorrect, lost, non-receipt, omitted

Category:

IRS procedures

What should I do if I entered an incorrect routing or account number for direct deposit of my refund?

 Answer:

The IRS assumes no responsibility for tax preparer or taxpayer error. Please verify your account and routing numbers with your financial institution and double check the accuracy of the numbers you enter on your return prior to signing and submitting it. You should not request a deposit of your refund into an account that's not in your own name.

The IRS handles account or routing number errors the same for both split refunds and regular direct deposits.

Scenario:

• You omit a digit in the account or routing number of an account and the number doesn't pass the IRS's validation check. In this case, the IRS will send you a refund by other means for the entire refund instead of a direct deposit.
• You incorrectly enter an account or routing number, and the number passes the validation check, but your designated financial institution rejects and returns the deposit to the IRS. The IRS will issue you a refund by other means for the amount of that deposit once it is received.
• You incorrectly enter an account or routing number that belongs to someone else, and your designated financial institution accepts the deposit. You must work directly with the respective financial institution to recover your funds. See the last solution bullet below.
• You requested a Refund Anticipation Loan (RAL) or Refund Anticipation Check (RAC) through your preparer or preparation software. Usually this occurs when you authorize the fee for preparation to be taken from your refund. Even if you didn't request a direct deposit, these types of refunds are directly deposited into the preparer’s financial institution, so you should contact that institution for resolution. See the last solution bullet below.

Solution:

• If the return hasn't already posted to our system, you can ask us to stop the direct deposit. You may call us toll-free at 800-829-1040, M - F, 7 a.m. - 7 p.m.
• Generally, if the financial institution recovers the funds and returns them to the IRS, the IRS will send you a refund by other means to your last known address on file with the IRS.
• If you have contacted the financial institution and two weeks have passed with no results, you will need to file Form 3911, Taxpayer Statement Regarding Refund PDF PDF to initiate a trace. This allows the IRS to contact the bank on your behalf to attempt recovery of your refund. Banks are allowed up to 90 days from the date of the initial trace input to respond to our request for information, but it may take up to 120 days for resolution.
• If funds aren't available or the bank refuses to return the funds, the IRS cannot compel the bank to do so. The case may then become a civil matter between you and the financial institution and/or the owner of the account into which the funds were deposited.

Subcategory:

Refund inquiries

Category:

IRS procedures

How can I check the status of my amended return?

 Answer:

You can check the status of your Form 1040-X, Amended U.S. Individual Income Tax Return using the Where's My Amended Return? online tool or by calling the toll-free telephone number 866-464-2050 three weeks after you file your amended return. Both tools are available in English and Spanish and track the status of amended returns for the current year and up to three prior years.

When using either tool, you must enter your taxpayer identification number, such as your Social Security number, along with your date of birth, and ZIP code to prove your identity. Once authenticated, you can view the status of your amended return across three processing stages -- Received, Adjusted, and Completed.

The online tool includes an illustrated graphic that visually communicates where your amended return resides within the processing stages. Allow 8 to 12 weeks for your amended return to be processed; however, in some cases, processing can take up to 16 weeks. It can take up to three weeks after filing it to show up in our system. There’s no need to call the IRS during that three-week period unless the tool specifically tells you to do so. For current processing status, check our processing status dashboard.

Additional Information:

• Tax Topic 308 — Amended returns
• Form 1040-X frequently asked questions

Subcategory:

Amended returns & Form 1040X

Category:

IRS procedures

Can I file my return electronically even though I am filing a Form 8379, Injured Spouse Allocation?

 Answer:

Yes, you can file Form 8379 electronically with your tax return.

Generally:

• If you file Form 8379 with a joint return electronically, the time needed to process it is about 11 weeks.
• If you file Form 8379 with a joint return on paper, the time needed is about 14 weeks.
• If you file Form 8379 by itself after a joint return has already been processed, the time needed is about 8 weeks.

Additional Information:

• Instructions for Form 8379, Injured Spouse Allocation (PDF)

Subcategory:

Injured spouse

Category:

IRS procedures

Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for another federal tax period?

 Answer:

No, one of the conditions of your installment agreement is that the IRS will automatically apply any refund (or overpayment) due to you against taxes you owe. Because your refund isn't applied toward your regular monthly payment, continue making your installment agreement payments as scheduled.

If your refund exceeds your total balance due on all outstanding tax liabilities including accruals, you'll receive a refund of the excess unless you owe certain other past-due amounts, such as state income tax, child support, a student loan, or other federal nontax obligations which are offset against any refund. For more information on these non-IRS refund offsets, you can call the Bureau of the Fiscal Service (BFS) at 800-304-3107 (toll-free).

If you receive an IRS notice or letter

We may send you a notice or letter if:

• You have a balance due
• Your refund has changed
• We have a question about your return
• We need to verify your identity
• We changed or corrected your return
• We’re delayed in processing your return

To get details on an IRS notice or letter, search for it by number or topic. You can find the CP or LTR number on the right corner of the letter.

What to do if you get a letter or notice

Review it carefully and keep it for your records. If we ask you to respond, act by the due date. What to do depends on your situation:

If you agree with the notice or letter

Take any requested action. You don’t need to reply unless we specifically ask you to.

If you disagree

Follow the instructions in the notice to dispute what it says. Include information and copies of documents for us to review when we consider your dispute.

To guarantee your appeal rights, reply by the due date.

If you have an amount due

Even if you can’t pay the full amount you owe, pay by the due date. This can reduce interest and penalty charges.

If we changed or corrected your tax return

Compare the information in the notice or letter with your return. If you agree, note the corrections on your personal copy of the tax return and keep it for your records.

You only need to take action if we ask for more information, if you have a balance due or if you disagree with the notice.

If you suspect a scam

If the letter doesn’t appear in your search or if it looks suspicious, call 800-829-1040. Follow the IRS representative’s instructions.

Scams and consumer alerts

Paperless notices

You can get certain notices and letters in your online account.

The Independent Office of Appeals (Appeals) may be the place for you if all the following apply:

• You received a letter from the IRS explaining your right to appeal the IRS’s decision
• You do not agree with the IRS’s decision
• You are not signing an agreement form sent to you

If all of the above are true, then you may be ready to request an Appeals conference or hearing.

To decide if you should appeal your tax dispute, consider the following. If you believe the:

• IRS made an incorrect decision based on a misinterpretation of the law, check the publications discussing your issue(s)
• IRS didn’t properly apply the law due to a misunderstanding of the facts, be prepared to clarify and support your position
• IRS is taking inappropriate collection action against you or your offer in compromise was denied and you disagree with that decision, be prepared to clarify and support your position
• Facts used by the IRS are incorrect, then you should have organized records or other evidence to support your position

In addition to the ordinary appeal process, we offer mediation programs that can more quickly resolve disputed issues.

Appeals isn’t for you if any of the following apply:

• The correspondence you received from the IRS was a bill and there was no mention of an appeal
• You didn’t provide all information to support your position to the examiner during the audit
• Your only concern is that you can’t afford to pay the amount you owe

If you don’t meet the conditions above for having your case enter the Appeals process, contact the IRS employee you have been working with or call for assistance in identifying the correct IRS employee to contact.

Requesting an appeal

After you determine you meet the criteria for an appeal, (considering an appeal) you may request an appeal by filing a written protest. Complete your protest and mail it to the IRS address on the letter that explains your appeal rights. Don’t send your protest directly to the IRS Independent Office of Appeals (Appeals); this will only delay the process and may prevent Appeals from considering your case.

Before sending your case to Appeals, the IRS Examination or Collection office that made a tax assessment or initiated collection action will consider your protest and attempt to resolve the disputed tax issues. If that office can’t resolve your issues, they will forward your case to Appeals for consideration.

When you come to Appeals, you may represent yourself or have a professional represent you. Your representative must be:

• An attorney
• A certified public accountant, or
• An enrolled agent authorized to practice before the IRS

See Publication 947, Practice before IRS and Power of Attorney PDF, for information regarding other individuals who may serve as representatives. If you want your representative to talk to us without you, you must provide us with a copy of a completed power of attorney Form 2848, Power of Attorney and Declaration of Representative PDF.

File a protest

We require a formal written protest to request an Appeals conference, unless you qualify under the Small Case Request procedures discussed below. For information on filing a formal written protest or a Small Case Request, refer to Publication 5, Your Appeal Rights and How To Prepare a Protest If You Disagree PDF

Note: If you disagree with a lien, levy, seizure or a denial, modification or termination of an installment agreement, see Publication 1660, Collection Appeal Rights PDF, for information on filing your protest.

You must send your formal written protest within the time limit specified in the letter that offers you the right to appeal the proposed changes. Generally, the time limit is 30 days from the date of the letter.

How to file a small case request

You may submit a Small Case Request if the entire amount of additional tax and penalty proposed for each tax period is $25,000 or less from an examination (audit). If you are appealing the denial of a doubt as to liability (DATL) offer in compromise, the entire amount for each tax period includes total unpaid tax, penalty and interest due. Employee plans, exempt organizations, S corporations and partnerships are not eligible for Small Case Requests.

1. Follow the instructions in the letter you received.
2. Use Form 12203, Request for Appeals Review PDF, the form referenced in the letter you received to file your appeal or prepare a brief written statement. List the disagreed item(s) and the reason(s) you disagree with IRS proposed changes from the examination (audit).

Appealing a collection decision

In addition, if you’re appealing a collection decision you should select the appeal procedure listed below that corresponds to your type of case for specific instructions to prepare your appeal. Remember, you will need to mail your appeal to the collection office that sent you the collection action letter with your right to a hearing. Don’t send it directly to any Appeals office location. IRS Collection must receive the appeal first in order to process and forward the case file to Appeals.

Collection Appeals Program (CAP)

 Collection Appeals Program (CAP) is available for a broad range of collection actions. CAP cases are regarding a specific collection action proposed or taken, and are generally resolved very quickly. However, you can’t go to court if you disagree with the Appeals decision at the CAP hearing.

You may use the CAP process if you are involved in any of the following collection actions:

• Notice of Federal Tax Lien, filed or proposed to be filed
• Levy action, taken or proposed
• Rejection of Installment Agreement
• Termination of Installment Agreement
• Modification of Installment Agreement
• Disallowance of taxpayer request to return to levied property
• Seizure

CAP Procedures

If your only collection contact has been a notice or telephone call:

• Call the IRS telephone number shown on your notice
• Explain why you disagree and that you want to appeal the decision
• Be prepared to discuss your case and have all relevant information handy
• Before you can start the appeals process with Appeals, you will need to first discuss your case with a Collection manager, unless the appeal involved a rejected, proposed for modification, modified, proposed for termination or terminated installment agreement

If you have already been in contact with a revenue officer:

• Call the revenue officer you've been dealing with
• Explain why you disagree and that you want to appeal the decision
• Be prepared to discuss your case and have all relevant information handy
• Before you can start the appeals process with Appeals, you will need to discuss your case with a Collection manager, unless the appeal involved a rejected, proposed for modification, modified, proposed for termination or terminated installment agreement.
• Complete Form 9423, Collection Appeals Request PDF
• Submit the completed Form 9423 to the revenue officer within 3 business days of your conference with the Collection manager

For more information, refer to Publication 1660, Collection Appeal Rights PDF.

Collection due process (CDP)

 You are entitled to a Collection Due Process (CDP) hearing with Appeals if the IRS sends you a notice that states you have the right to request a CDP hearing, such as:

• Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320
• Final Notice - Notice of Intent to Levy and Notice of Your Right to A Hearing
• Notice of Jeopardy Levy and Right of Appeal
• Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing
• Post Levy Collection Due Process (CDP) Notice

CDP Procedures

• You generally have 30 days from the date of the notice to timely request a CDP hearing.
• Complete Form 12153, Request for a Collection Due Process or Equivalent Hearing PDF
  • It’s important to identify all the reasons for any disagreement you have
• Send the completed Form 12153 to the same address that is shown on your CDP Notice
• If your request is timely made, you will be entitled to an Appeals hearing and to seek judicial review of that hearing with the Tax Court.
• If your request is timely, IRS levy action is generally suspended against you for the tax periods you appealed.
• If your request is not timely, you are still entitled to request a CDP Equivalent Hearing with Appeals within the 1-year period described in the Form 12153. However, if you still disagree with the Appeals decision in the Equivalent Hearing, you have no right to judicial review by the Tax Court.

For more information, refer to:

• Publication 1660, Collection Appeal Rights PDF
• CDP frequently asked questions

Offer in Compromise (OIC)

An Offer in Compromise (OIC) is an agreement between the taxpayer and the government that settles a tax liability for payment of less than the full amount owed. If you received a letter notifying you that your offer was rejected, you have 30 days from the date on the letter to request an appeal of the decision.

For more information, refer to:

• Appealing your rejected Offer in Compromise (OIC)
• Form 656-B, Offer in Compromise PDF

Trust Fund Recovery Penalty (TFRP)

The IRS may assert this penalty against you, if you are a person they determine was responsible for:

• Collecting or withholding,
• Accounting for,
• Depositing, or paying specified taxes

If the IRS determines you willfully failed to take these actions, you can be held personally liable for a penalty equal to the full amount of the tax that was not paid, plus interest. This includes:

• Employment taxes
• Excise taxes
• Non-resident alien (NRA) withholding

A responsible person for this purpose includes:

• An owner or officer of a corporation
• A partner
• A sole proprietor
• An employee of any form of business

A trustee or agent with authority over the funds of the business can also be held responsible for the penalty. The assessment of the trust fund recovery penalty is applicable to the following tax forms: CT-1, 720, 941, 943, 944, 945, 1042 and 8288.

Refer to Publication 5, Your Appeal Rights and How To Prepare a Protest If You Disagree PDF, for information on preparing your protest. In addition to the steps outlined in the publication, when preparing your formal written protest or small case request:

• Enclose a copy of the Letter 1153, Proposed Trust Fund Recovery Penalty Notification
• Explain why you don't believe you are responsible for the unpaid taxes or the reason you disagree with the amount of the proposed assessment(s)
• Include a clear explanation of your duties and responsibilities
• Cite the law or authority, if any, on which you are relying
• Send your protest to the attention of the IRS employee whose name and address are listed in the Letter 1153 you received

What to expect from the Independent Office of Appeals

If your case qualifies for an appeal, we’ll review the issues of your case with a fresh, objective perspective and schedule a conference with you. Our conferences are informal and are conducted by correspondence, telephone, video conference or in-person. We may be able to resolve your disputed issues and help you to avoid the time and expense of a court trial. We’ll consider any reason you have for disagreement, except for:

• Moral
• Religious
• Political or constitutional arguments
• Conscientious objections or similar grounds

Our commitments – we will:

• Explain your appeal rights and the appeal process.
• Listen to your concerns, be courteous and professional.
• Be timely and responsive.
• Be fair and impartial.

Your responsibilities – you should:

• Listen to our explanation of your appeal rights and the appeal process, including the timeframe to resolve your case.
• State the issues with which you disagree, explain why and provide your understanding of the facts and the law in your case.
• Provide us any additional information or documentation that may be helpful to your case within the timeframe specified by the appeals officer or settlement officer.
  Note: If you present new information that you didn't provide to the auditor or revenue officer, we may return your case or refer that information for further consideration. You'll receive the auditor's or revenue officer's comments and will have an opportunity to respond.
• Be timely and responsive to our requests for scheduling and information.

General information

The IRS Independent Office of Appeals (Appeals) can address a variety of cases and issues handled by the IRS. The time it takes to resolve your case in Appeals will vary, depending on the facts and circumstances of your case. After you’ve been contacted by Appeals, questions about specific timeframes should be directed to the appeals officer or settlement officer assigned to your case.

Appeals may call you if you filed a petition with the U.S. Tax Court

Appeals seeks to resolve disputes between taxpayers and the IRS without the need for litigation. Taxpayers who file a petition in the U.S. Tax Court and who haven’t had a prior opportunity to attempt to resolve their case with Appeals may be contacted by Appeals. Traditionally, Appeals contacts the taxpayer by mail offering to discuss possible settlement of the case. To improve the timeliness of the settlement process, Appeals has begun making initial contact with certain taxpayers (or the taxpayer’s authorized representative, if any) by telephone PDF. This telephone contact generally will occur in cases where the taxpayer petitioned the court as a result of a letter from the IRS correspondence examination unit or the income underreporter unit. Appeals recognizes that some taxpayers may be concerned that a caller claiming to be from IRS Appeals truly is from Appeals.

How can you know if a call is really from IRS Independent Office of Appeals?

Did you file a petition with the U.S. Tax Court?

If the answer is yes, you may receive a call from an appeals officer to discuss your tax dispute and options for resolution.

If an appeals officer cannot reach you by phone, they may leave a general voicemail message. When an Appeals employee leaves a voicemail, they will include self-identifying information such as their name, title, badge number, and contact information.

Appeals call verification procedures

During the call, the appeals officer will provide you with their name, their badge number and their contact information including their phone number, e-fax, and email address. The appeals officer will also know the docket number as well as specifics regarding your case.

Appeals employees will never ask for your credit card or banking information.

Also, during this call, Appeals employees may ask you to submit additional documentation regarding your petition directly to the Independent Office of Appeals via mail, fax, or to an email address ending with @irs.gov.

Access to case file

You may be entitled to a copy of the administrative case file sent to Appeals with your appeal request. If you meet the criteria, we’ll provide you with an opportunity to request that information prior to your Appeals conference. The process will be explained in more detail by the Appeals employee assigned to your case.

Taxpayer Advocate Service

If you’ve encountered difficulties in dealing with the IRS or have concerns about your tax matters that the IRS hasn’t been able to resolve after multiple attempts, you may wish to contact your Local Taxpayer Advocate office for assistance. 

Frequently asked questions

I want to appeal the decision reached by the IRS Examination or Collection office. Should I contact Appeals directly?

 No.

Appeals can’t assist with resolving your tax matters until your request for an appeal has been processed by the IRS office working your case. If you’ve considered an appeal and decided to request an appeal, you may do so by filing a written protest.

Complete your protest and mail it to the IRS address on the letter that explains your appeal rights. Don’t send your protest directly to the Independent Office of Appeals; this will only delay the process and may prevent us from considering your case.

I sent my appeal request to the IRS office that worked my case. What happens next?

 The IRS Examination or Collection office that made a tax assessment or initiated collection action will consider your protest and attempt to resolve the disputed tax issues.

If that office can’t resolve these issues, they will then forward your case to us for consideration. Don’t contact Appeals until after this happens.

When should I expect to hear from Appeals?

 You can expect to hear from us after we receive and review your case. If you haven’t heard from us and it’s been more than 120 days since you filed your protest requesting an appeal, contact the IRS office to which you sent your appeal request. If you don’t know which IRS employee or office last worked your case, call the IRS taxpayer assistance line.

The IRS office where I submitted my request for an appeal says they forwarded my case to Appeals. How can I find out who is handling my case? (updated April 28, 2025)

 We can tell you if your case has been assigned to an Appeals employee and how to contact that employee directly. The assigned Appeals employee is your best contact for all issues related to your Appeals case. Get the status of your appeal request.

I have questions or concerns that the Appeals employee assigned to my case is unable to address. Who can I contact for additional help? (updated July 25, 2023)

 You should begin by asking to speak with the Appeals employee’s manager. This contact information will be available on the letter you received acknowledging receipt of your case in Appeals. If they’re also unable to address your questions or concerns, you may ask to speak with the area director with authority over that office.

How long will it take for Appeals to work my case?

 The time it takes for Appeals to work your case depends on several factors. These include, but are not limited to, the type of case, the facts of the case, the complexity of the issues, the availability of legal precedents, other legal theories involved and Appeals’ determination of the hazards of litigation. If you have petitioned the United States Tax Court prior to coming to Appeals, you have a “docketed” case and the time involved will also be affected by dates and timeframes established by the court and beyond Appeals’ ability to control. Cases received directly from Compliance that have not been petitioned to the Tax Court are referred to as “non-docketed” cases. For more information on average timeframes for non-docketed cases, visit Independent Office of Appeals Customer Satisfaction Surveys.

If I’m still unable to have my concerns addressed, is there a higher-level official I can contact? (updated April 28, 2025)

 Each of the Appeals’ functions has an executive overseeing their operations. If your concerns rise to that level, you may contact us by mail, with your questions or concerns.

Letters should be addressed to:

Internal Revenue Service
Independent Office of Appeals
1111 Constitution Avenue NW - Room 3615
Washington, DC 20224

Do not mail your appeal request to this address.

This office does not process appeal requests. Mail your appeal request directly to the IRS person or office that made the determination you seek to appeal.

Topic no. 161, Returning an erroneous refund – Paper check or direct deposit

It's an erroneous refund if you receive a refund you're not entitled at all or for an amount more than you're entitled to.

If your refund was a paper Treasury check and hasn't been cashed:

1. Write "Void" in the endorsement section on the back of the check.
2. Submit the check immediately, but no later than 21 days, to the appropriate IRS location. The location is based on your state of residency. Use the mailing address listed in the About Form 3911 page for the state you live in.
3. Don't staple, bend, or paper clip the check.
4. Include a note stating "Return of erroneous refund check" and give a brief explanation of the reason for returning the refund check.

If your refund was a paper Treasury check and has been cashed:

1. Submit a personal check, money order, etc., immediately, but no later than 21 days, to the appropriate IRS location. The location is based on your state of residency. Use the mailing address listed in the About Form 3911 page for the state you live in.
2. Write on the check/money order: “Payment of Erroneous Refund,” the tax period for which the refund was issued, the account type ((IMF) individual or (BMF) Business) and your taxpayer identification number (Social Security number, employer identification number, or individual taxpayer identification number).
3. Include a brief explanation of the reason for returning the refund.
4. Cashing an erroneous refund check may result in interest due to the IRS.

If your refund was a direct deposit:

1. Contact the Automated Clearing House (ACH) department of the bank/financial institution where the direct deposit was received and have them return the refund to the IRS.
2. Call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) (see telephone assistance for hours of operation) to explain why the direct deposit is being returned.
3. Interest may accrue on the erroneous refund.

When the amount of the refund (paper check or direct deposit) is different than what was expected, indicating the IRS changed the amount, a notice explaining the adjustment is mailed to your address of record. Please review the information in the notice to determine if the change to the refund is correct. A toll-free telephone number is included on the notice in case you require further assistance.

Page Last Reviewed or Updated: 04-Dec-2025

Topic no. 157, Change your address – how to notify the IRS

If your address has changed, you need to notify the IRS to ensure you receive any tax refunds or IRS correspondence. There are several ways to notify the IRS of an address change:

When filing your tax return

If you change your address before filing your return, enter your new address on your return when you file. When your return is processed, we'll update our records. Be sure to also notify your return preparer.

Notifying the post office

If you change your address after filing your return, you should notify the post office that services your old address. Because not all post offices forward government checks, you should also directly notify the IRS as described below.

By form

To change your address with the IRS, you may complete a Form 8822, Change of Address (For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns) and/or a Form 8822-B, Change of Address or Responsible Party — Business and send them to the address shown on the forms. For information on changing the "responsible party," see Form 8822-B.

In writing

You may also write to inform us that your address is changing. Tell us you're changing your address by providing us your:

• Full name
• Old and new addresses
• Social Security number, individual taxpayer identification number, or employer identification number, and
• Signature

Joint filers - If you filed a joint return, you should provide the information and signatures for both spouses. Send your written address change information to the IRS addresses listed in the instructions to the tax forms you filed.

Separated - If you filed a joint return and you now have separate residences, each joint taxpayer should notify us of your new, separate addresses.

Include your SSN (and the name and SSN of your spouse if you filed a joint return) in any correspondence with the IRS.

By phone

You may also call us to inform us that your address is changing. Tell us you're changing your address by providing us your:

• Full name
• Old and new addresses
• Social Security number, individual taxpayer identification number, or employer identification number

We may request additional information to verify your identity.

Employment tax returns

If the change of address relates to an employment tax return, the IRS issues confirmation notices (Notices 148A and 148B) for the change to both the new and former address.

Processing

It can take four to six weeks for a change of address request to be fully processed.

Topic no. 201, The collection process

If you don't pay your tax in full when you file your tax return, you'll receive a bill for the amount you owe. This bill starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax.

The first notice you receive will be a letter that explains the balance due and demands payment in full. It will include the amount of the tax, plus any penalties and interest accrued on your unpaid balance from the date the tax was due.

The unpaid balance is subject to interest that compounds daily and a monthly late payment penalty up to the maximum allowed by law. It's in your best interest to pay your tax liability in full as soon as you can to minimize the penalty and interest charges. You may want to consider other methods of financing full payment of your taxes, such as obtaining a cash advance on your credit card or getting a bank loan. The rate and any applicable fees your credit card company or bank charges may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. If you can't pay in full, you should send in as much as you can with the notice and explore other payment arrangements.

If you're not able to pay your balance in full immediately, you may qualify for a payment plan. One option is a short-term payment plan of up to 180 days, available for individual taxpayers who owe less than $100,000 in combined tax, penalties, and interest. If you cannot pay immediately or within 180 days, you may qualify to pay monthly through an installment agreement. You can apply for a payment plan online or you may complete Form 9465, Installment Agreement Request and mail it in with your bill. You may also request an installment agreement over the phone by calling the phone number listed on your balance due notice. 

There's a user fee to set up an installment agreement. For low-income taxpayers, the user fee is reduced and possibly waived or reimbursed if certain conditions apply. Interest and late payment penalties up to the maximum allowed by law will continue to accrue while you make installment payments. For more information about payment plans and payment methods, see Additional information on payment plans and Topic no. 202.

If you can't full pay under an installment agreement, you may apply for an offer in compromise (OIC). An OIC is an agreement between a taxpayer and the IRS that resolves a taxpayer's tax liability by payment of an agreed upon reduced amount. Before an offer can be considered, you must have filed all tax returns, have received a bill for at least one tax debt included on the offer, and made all required estimated tax payments for the current year. If the taxpayer is a business owner with employees, you must have made all required federal tax deposits for the current quarter and the two preceding quarters. Taxpayers in an open bankruptcy proceeding aren't eligible. To confirm eligibility, you may use the Offer in Compromise Pre-Qualifier tool. Use of the tool does not guarantee offer acceptance. For additional information on OICs, refer to Topic no. 204.

If you need more time to pay, you may ask that we delay collection and report your account as currently not collectible. If the IRS determines that you can't pay any of your tax debt due to a financial hardship, the IRS may temporarily delay collection by reporting your account as currently not collectible until your financial condition improves. Being currently not collectible does not mean the debt goes away. It means the IRS has determined you can't afford to pay the debt at this time. Prior to approving your request to delay collection, we may ask you to complete a Collection Information Statement (Form 433-F PDF, Form 433-A PDF, or Form 433-B PDF) and provide proof of your financial status (this may include information about your assets and your monthly income and expenses). You should know that if we do delay collecting from you, your debt continues to accrue penalties and interest until the debt is paid in full. During a temporary delay, we will again review your ability to pay. The IRS may temporarily suspend certain collection actions, such as issuing a levy (explained below), until your financial condition improves. However, we may still file a Notice of Federal Tax Lien (explained below) while your account is suspended. Please call the phone number listed on your bill to discuss this option. For additional information on currently not collectible, refer to Topic no. 202.

If you're a member of the Armed Forces, you may be able to defer payment. See Publication 3, Armed Forces' Tax Guide.

It's important to contact us and make arrangements to pay the tax due voluntarily. If you don't contact us, we may take action to collect the taxes.

We may file a Notice of Federal Tax Lien in the public record to notify your creditors of your tax debt. A federal tax lien is a legal claim to your property, including property that you acquire after the lien arises. The federal tax lien arises automatically when the IRS sends the first notice demanding payment of the tax debt assessed against you and you fail to pay the amount in full. The filing of a Notice of Federal Tax Lien may affect your ability to obtain credit although it no longer appears on major credit reports. Once a lien arises, the IRS generally can't release the lien until the tax, penalty, interest, and recording fees are paid in full or until the IRS may no longer legally collect the tax. Paying your tax debt in full is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt.

In certain situations, the IRS may withdraw a Notice of Federal Tax Lien even when you still owe the tax debt. The Notice of Federal Tax Lien may be withdrawn if the IRS determines:

1. The Notice of Federal Tax Lien was not filed according to IRS procedures;
2. You entered into an installment agreement to satisfy the liability unless the installment agreement provided for the Notice of Federal Tax Lien;
3. Withdrawing the Notice of Federal Tax Lien will allow you to pay your taxes more quickly; or
4. With your consent or that of the National Taxpayer Advocate, withdrawing the Notice of Federal Tax Lien is in your best interest and in the best interest of the government.

The IRS may levy (seize) assets such as wages, bank accounts, Social Security benefits, and retirement income. The IRS also may seize your property (including your car, boat, or real estate) and sell the property to satisfy the tax debt. In addition, any future federal tax refunds or state income tax refunds that you're due may be seized and applied to your federal tax liability. 

You may call the IRS at 800-829-1040 (see telephone assistance for hours of operation) to discuss any IRS bill. Please have the bill and your records with you when you call.

You have rights and protections throughout the collection process. For more information, refer to Taxpayer Bill of Rights, Publication 1, Your Rights as a Taxpayer, Publication 594, The IRS Collection Process PDF, and Publication 1660, Collection Appeal Rights PDF.

For more information about making payments, online payment agreements, and offers in compromise, visit our Make a payment page.

Topic no. 202, Tax payment options

If you're not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There's also a penalty for failure to file a tax return, so you should file timely and pay as much as you are able, even if you can't pay your balance in full. It's always in your best interest to pay in full as soon as you can to minimize the additional interest and penalties and paying what you can when you file will also minimize those charges.

Paying electronically is a convenient way to pay your federal taxes. Electronic payment options are available on our payments page and the IRS2Go app. You can pay your federal taxes electronically online or by phone. When paying electronically, you can schedule your payment in advance. You'll receive instant confirmation after you submit your payment. You can opt in to receive email notifications about your payments. The IRS uses the latest encryption technology making electronic payments safe and secure. It's quick, easy, and secure.

Electronic payment methods

Direct Pay

IRS Direct Pay is a secure service you can use to pay both individual and business taxes directly from your checking or savings account at no cost to you. Complete the five easy steps and you'll receive instant confirmation after you submit your payment. With Direct Pay, you can also:

• look up your payment details and status
• opt in to receive email notifications about your payment
• modify or cancel your payment up to two business days before your scheduled payment date

IRS Online Account

An IRS Online Account provides access to your federal tax account information through a secure login. You can:

• view the amount you owe
• view details of your balance
• view your payment history
• view, print or download your transcripts
• view key information from your current year tax return as originally filed

In addition, you can pay using a debit card, credit card or digital wallet or apply for an Online Payment Agreement if you need more time to pay.

If you’re unable to pay electronically, please refer to Pay by check or money order.

If you can't pay in full, you should pay as much as possible to reduce the accrual of interest and penalties on your account. Please refer to Topic no. 158 for information needed to ensure proper credit of your payment. You should consider financing the full payment of your tax liability through loans, such as a home equity loan from a financial institution or a credit card. The interest rate and any applicable fees charged by a bank or credit card company may be lower than the combination of interest and penalties set by the Internal Revenue Code.

Short-term payment plans (up to 180 days)

If you can't pay in full immediately, you may qualify for additional time --up to 180 days-- to pay in full. There's no fee for this short-term payment plan. However, interest and any applicable penalties continue to accrue until your liability is paid in full. Individuals may be able to set up a short-term payment plan by using the Online Payment Agreement application or by calling us. Businesses must call for a short-term payment plan. Check the hours of availability.

Long-term payment plans (installment agreements)

If you're not able to pay your balance in full immediately or within 180 days, you may qualify for a monthly payment plan (installment agreement) that lets you make a series of monthly payments over time. Different types of long-term payment plans are available depending on your situation.

Requesting a long-term payment plan

To request a long-term payment plan, use the Online Payment Agreement application. Even if the IRS hasn’t yet issued you a bill, you may establish a pre-assessed agreement by entering the balance you’ll owe from your tax return. An online payment agreement is quick and has a lower user fee compared to other application methods.

Alternatively, you can complete and mail paper Form 9465, Installment Agreement Request, file through tax filing software, or call us, preferably at the number on your bill if you received one.

The IRS charges a user fee when you enter into a payment plan; however, if you are a low-income taxpayer, this user fee is reduced and possibly waived or reimbursed when certain conditions apply. See Additional information on payment plans for more details.

Qualifications for individual taxpayers

Before your payment plan request can be considered, you must be current on all filing and payment requirements. Taxpayers in an open bankruptcy proceeding aren't eligible, generally.

Most individual taxpayers qualify for a Simple Payment Plan. Generally, you’re eligible if your assessed total balance of tax, penalties and interest owed is $50,000 or less. Your proposed payment amount must pay the tax liability in full by the Collection Statute Expiration Date. Generally, this is 10 years from the date your tax was assessed.

You’re eligible for a Guaranteed Installment Agreement if you are an individual, the tax you owe is $10,000 or less, excluding interest and penalties, and:

• during the past 5 years, you (and your spouse if filing a joint return) have timely filed all income tax returns and paid any income tax due
• during the past 5 years, you (and your spouse if filing a joint return) haven’t entered into an installment agreement for the payment of income tax
• you agree to pay the full amount you owe within 3 years and to comply with the tax laws while the agreement is in effect
• you’re financially unable to pay the liability in full when due.

If you don’t qualify for the above payment plans/installment agreements, you may still be eligible. However, a Notice of Federal Tax Lien determination and a Collection Information Statement (Form 433-F PDF, Form 433-A PDF or Form 433-B PDF) may be required.

Qualifications for businesses

Generally, if your business doesn’t owe trust fund taxes, you’re eligible for a Streamlined Installment Agreement if:

• your assessed tax liability is $25,000 or less (in-business with income tax only, or an out-of-business taxpayer), or
• your assessed tax liability is $25,001 to $50,000 (an out-of-business sole proprietorship) and you agree to pay by direct debit (automatic payments from your bank account) or payroll deduction (if you earn wages)

Also, your proposed payment amount must pay the assessed tax liability in full within 72 months or by the Collection Statute Expiration Date, whichever is earlier.

Generally, if your business owes trust fund taxes, you’re eligible for an In-business Trust Fund Express Installment Agreement if:

• your assessed tax liability is $25,000 or less (for an in-business taxpayer),
• your proposed payment amount will pay the tax liability in full within 24 months or by the Collection Statute Expiration Date, whichever is earlier, and
• you pay by direct debit if the assessed tax liability is between $10,000 and $25,000.

If you do not qualify for the above payment plans/installment agreements, you may still be eligible. However, a Notice of Federal Tax Lien determination and a Collection Information Statement (Form 433-F PDF, Form 433-A PDF or Form 433-B PDF) may be required.

Partial payment plan (installment agreement)

If you cannot afford to full pay by the Collection Statute Expiration Date (generally 10 years), a Partial Payment Installment Agreement may be an option for you. . If you propose a payment amount that will not pay your entire balance by the Collection Statute Expiration Date, you will be required to complete a Collection Information Statement (Form 433-F PDF, Form 433-A PDF or Form 433-B PDF) and provide supporting financial information. We will also need to determine whether to issue a public Notice of Federal Tax Lien. If a partial payment installment agreement is approved, your agreement is subject to reviews every two years to determine if your financial situation has changed. You may be required to provide a new Collection Information Statement and supporting financial information during these reviews. The financial information you provide may result in a reduction, an increase, or no change to your monthly payment amount.

Effect of payment plan on IRS collection activities and collection statute

Refer to Time the IRS can collect details. With certain exceptions, the collection period is suspended or extended, and IRS is prohibited from levying (seizing your property) while you are either waiting for an installment agreement to be approved or appealing our decision to terminate one.

An installment agreement request is often pending until:

• the IRS reviews it and establishes an installment agreement, or
• the IRS rejects the request for an installment agreement, or
• you withdraw your request for an installment agreement.

If the requested installment agreement is rejected, the running of the collection period is suspended for 30 days. Similarly, if you stop paying (default on your installment agreement payments) and the IRS proposes to terminate the installment agreement, the running of the collection period is also suspended for 30 days. Last, if you timely exercise your right to appeal either an installment agreement rejection or termination, the collection period is suspended while we consider your appeal, from the date you make your appeal until the date our decision on it becomes final.

The collection period is not suspended while your installment agreement is in effect.

Making installment payments

You must specify the amount you can pay and the day of the month (1st through 28th) that your payment will be made. Your payment must be received by the IRS on your selected due date. The Online Payment Agreement application will provide an immediate determination for your proposed payment plan. If you mail Form 9465, the IRS will respond to your request typically within 30 days, but it may take longer during filing season.

Installment agreements paid by direct debit or payroll deduction enable you to make timely payments automatically and reduce the possibility of default.

For a Direct Debit Installment Agreement, you must provide your checking account number, bank routing number, and written authorization to initiate the automated withdrawal of the payment. Direct debit installment agreements have a lower user fee compared to other installment agreements, and the user fee may be waived or reimbursed for low-income taxpayers.

For a Payroll Deduction Installment Agreement, submit Form 2159, Payroll Deduction Agreement PDF. Your employer must complete Form 2159, as it's an agreement between you, your employer, and the IRS.

The IRS offers various options for making monthly payments. For all accepted payment methods, see Make a payment.

Alternatives and other tax debt help

Offer in Compromise

An Offer in Compromise (OIC) is an agreement between you and the IRS that resolves your tax liability by payment of an agreed upon reduced amount. Before the IRS will consider an offer in compromise, you must have:

• filed all tax returns
• received a bill for at least one tax debt included on the offer, and
• made all required estimated tax payments for the current year

If you're a business owner with employees, you must have:

• made all required federal tax deposits for the current quarter, and
• made all required federal tax deposits for the two preceding quarters

If you are in an open bankruptcy proceeding, you aren't eligible for an offer in compromise. To confirm eligibility and ensure use of the current application forms, use the Offer in Compromise Pre-Qualifier tool. Use of the tool does not guarantee offer acceptance.

With certain exceptions, the IRS is generally prohibited from levying and the IRS’s time to collect is suspended or prolonged while an OIC is pending, for 30 days immediately following rejection of an OIC for the taxpayer to appeal the rejection, and if an appeal is requested within the 30 days, during the period while the rejection is being considered in Appeals. For additional information on offers in compromise, refer to Topic no. 204.

Temporarily delay the collection process

If you can't pay any of the amount due because payment would prevent you from meeting your basic living expenses, you can request that the IRS delay collection until you're able to pay. If the IRS determines that you can't pay any of your tax debt because of financial hardship, the IRS may temporarily delay collection by reporting your account as currently not collectible until your financial condition improves.

However, being currently not collectible does not mean the debt goes away. It means the IRS has determined you can't afford to pay the debt at this time. Prior to approving your request to delay collection, we may ask you to complete a Collection Information Statement (Form 433-F PDF, Form 433-A PDF or Form 433-B PDF) and provide proof of your financial status. This may include information about your assets and your monthly income and expenses.

You should know that if we do delay collecting from you, your debt continues to accrue interest and penalties up to the maximum allowed by law until the debt is paid in full. During a temporary delay in collection, we will periodically review your ability to pay.

The IRS may temporarily suspend certain collection actions, such as issuing a levy (refer to Topic no. 201), until your financial condition improves. However, we may still file a Notice of Federal Tax Lien (refer to Topic no. 201) while your account is reported as currently not collectible. Please call us at 800-829-1040 (individuals) or 800-829-4933 (businesses) to discuss this option.

Responding to your IRS notice

It's important to respond to an IRS notice. If you don't pay your tax liability in full or make an alternative payment arrangement, the IRS has the right to take collection action. Refer to Topic no. 201 for information about the collection process.

If you're not able to make any payment at this time, please have your financial information available (for example, pay stubs, lease or rental agreements, mortgage statements, car lease/loan, utilities, etc.) and call us at the number on your notice, or 800-829-1040 (individuals) or 800-829-4933 (businesses) for assistance.

You have rights and protections throughout the collection process; see Taxpayer Bill of Rights and Publication 1, Your Rights as a Taxpayer. If you would like information about payment arrangements, installment agreements, and what happens when you take no action to pay, refer to Publication 594, The IRS Collection Process PDF.

For more information about making payments, payment plans (including installment agreements), and offers in compromise, review our Payments page.

Topic no. 203, Reduced refund

The Department of Treasury's Bureau of the Fiscal Service (BFS) issues IRS tax refunds and Congress authorizes BFS to conduct the Treasury Offset Program (TOP). Through the TOP program, BFS may reduce your refund (overpayment) and offset it to pay:

• Past-due child support;
• Federal agency nontax debts;
• State income tax obligations; or
• Certain unemployment compensation debts owed to a state (generally, these are debts for (1) compensation paid due to fraud, or (2) contributions owing to a state fund that weren't paid).

You can contact the agency with which you have a debt to determine if your debt was submitted for a tax refund offset. You may call BFS's TOP call center at the number below for an agency address and phone number. If your debt meets submission criteria for offset, BFS will reduce your refund as needed to pay off any eligible debts you owe to the agency. BFS will then issue you a refund for the remaining portion.

BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund once your refund date has passed. You should contact the agency shown on the notice if you believe you don't owe the debt or if you're disputing the amount taken from your refund. Contact the IRS only if your original refund amount shown on the BFS offset notice differs from the refund amount shown on your tax return. If you don't receive a notice, contact the BFS's TOP call center at 800-304-3107 (or TTY/TDD 800-877-8339), Monday through Friday 7:30 a.m. to 5 p.m. CST.

Injured spouse claim

If you filed a joint return and you're not responsible for debt that is subject to offset because it is owed by your spouse, you're entitled to request your portion of the refund back from the IRS. You may file a claim for this amount by filing Form 8379, Injured Spouse Allocation.

You may file Form 8379 in any of the following ways:

• With your original joint tax return (Form 1040 or Form 1040-SR),
• With your amended joint tax return (Form 1040-X) if you are claiming a joint refund, or
• By itself after you receive notification of an offset.

When filing a Form 8379 by mail either with your joint return or with an amended return, write "Injured Spouse" in the top left corner of the first page of the joint return. If filing these forms electronically, the software used should annotate the forms correctly.

The IRS can process your Form 8379 before an offset occurs. If you file Form 8379 with your original return, it may take 11 weeks to process an electronically-filed return or 14 weeks if you filed a paper return. If you file the Form 8379 by itself after a joint return has been processed, then processing will take about 8 weeks. To avoid delays, be sure to follow the instructions for Form 8379 PDF.

When filing Form 8379 by itself, you must show both spouses' taxpayer identification numbers in the same order as they appeared on your joint income tax return. You, the injured spouse, must sign the form. Follow the instructions on Form 8379 carefully and be sure to attach the required Forms W-2 and W-2G for both spouses and any Forms 1099 showing federal income tax withholding to avoid delays. Don't attach the previously filed joint tax return. Send Form 8379 to the Service Center where you filed your original return and allow at least 8 weeks for the IRS to process your request. The IRS will compute the injured spouse's share of the joint refund. If you lived in a community property state during the tax year, the IRS will divide the joint refund based upon state community property law. Not all debts are subject to a tax refund offset. To determine whether an offset will occur on a debt owed (other than federal tax), contact BFS's TOP call center at 800-304-3107 (800-877-8339 for TTY/TDD help).

Topic no. 204, Offers in compromise

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer's tax liabilities for less than the full amount owed. A taxpayer who can fully pay the liabilities through an installment agreement or other means, generally won't qualify for an OIC in most cases. For information concerning tax payment options including installment agreements, refer to Topic no. 202. To qualify for an OIC, the taxpayer must have filed all tax returns, have received a bill for at least one tax debt included on the offer, made all required estimated tax payments for the current year, and if the taxpayer is a business owner with employees, the taxpayer must have made all required federal tax deposits for the current quarter and the two preceding quarters.

In most cases, the IRS won't accept an OIC unless the amount offered by a taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer's ability to pay. The RCP includes the value that can be realized from the taxpayer's assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income less certain amounts allowed for basic living expenses.

Reasons for the offer

The IRS may accept an OIC based on one of the following reasons:

• First, the IRS can accept a compromise if there is doubt as to liability. A compromise meets this criterion only when there's a genuine dispute as to the existence or amount of the correct tax debt under the law.
• Second, the IRS can accept a compromise if there is doubt that the amount owed is fully collectible. Doubt as to collectibility exists in any case where the taxpayer's assets and income are less than the full amount of the tax liability.
• Third, the IRS can accept a compromise based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.

Forms to use

When submitting an OIC based on doubt as to collectability or effective tax administration, a taxpayer must use the most current version of Form 656, Offer in Compromise, and also submit Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B (OIC), Collection Information Statement for Businesses. If you are an individual taxpayer, you may also file your offer via Individual Online Account (IOLA). A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L, Offer in Compromise (Doubt as to Liability) PDF, instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC). Form 656 and referenced collection information statements are available in the Offer in Compromise Booklet, Form 656-B PDF.

Application fee

In general, a taxpayer must submit an application fee for the amount stated on Form 656.

However, there are two exceptions to this requirement:

• First, no application fee is required if the OIC is based on doubt as to liability.
• Second, no fee is required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income taxpayer exception. There are two ways to qualify for this exception. The first is that the individual's adjusted gross income, as determined for the most recent taxable year for which such information is available, falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. The second is that the household's gross monthly income x 12 months falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. For both ways, section 1 of Form 656 contains the Low-Income Certification guidelines to assist a taxpayer in determining whether the taxpayer qualifies for the low-income exception. A taxpayer who claims the low-income exception should check the appropriate certification box in the Low-Income Certification in section 1 of Form 656.

Payment options

A taxpayer may choose to pay the offer amount in a lump sum or in installment payments.

Lump sum offer – A "lump sum offer" is defined as an offer payable in 5 or fewer installments within 5 or fewer months after the offer is accepted. If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount. This payment is required in addition to the application fee, unless the taxpayer qualifies for the low-income taxpayer exception. The 20 percent payment is generally nonrefundable, meaning it won't be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. Instead, the 20 percent payment will be applied to the taxpayer's tax liability. The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent payment.

Periodic payment offer – An offer is called a "periodic payment offer" under the tax law if it's payable in 6 or more monthly installments and within 24 months after the offer is accepted. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656. This payment is required in addition to the application fee, unless the taxpayer qualifies for the low-income taxpayer exception. This amount is generally nonrefundable, just like the 20 percent payment required for a lump sum offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also nonrefundable. These amounts are applied to the taxpayer’s tax liability and the taxpayer has a right to specify the particular tax liability to which the periodic payment will be applied.

Upon acceptance of an OIC, the taxpayer may no longer designate offer payments to any tax liability specifically covered in the offer agreement.

Suspension of collection

Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is pending, for 30 days immediately following the IRS's rejection of an OIC, and for the period in which a timely appealed rejection is being considered by the IRS Independent Office of Appeals.

Offer terms

If the IRS accepts the taxpayer's offer, the taxpayer will have agreed to fully comply with the tax laws. The IRS will keep any refund, including interest, that might be due for tax returns filed through the date the IRS accepts the offer. If the taxpayer doesn't abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default. For doubt as to collectability and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC. When the IRS terminates an OIC, the agreement is no longer in effect and the IRS may then collect the amounts originally owed (less payments made), plus interest and penalties.

Right to appeal

If the IRS rejects an OIC, the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Independent Office of Appeals. The appeal must be made within 30 days from the date of the letter.

Return of an offer

In some cases, an OIC is returned to the taxpayer rather than rejected, because the taxpayer didn't submit necessary information, filed for bankruptcy, failed to include a required application fee or nonrefundable payment with the offer, hadn't filed required tax returns, or hadn't paid current tax liabilities at the time the IRS is considering the offer. A returned offer is different from a rejection because there's no right to appeal when the IRS returns the offer. However, once cured, the offer may be submitted again.

Additional information

Step-by-step instructions and all the forms for submitting an OIC are in the Offer in Compromise Booklet, Form 656-B PDF. You may use the Offer in Compromise Pre-Qualifier tool to confirm your eligibility and prepare a preliminary proposal. Use of this tool does not guarantee acceptance of an OIC. Additional information about the OIC program is available in Publication 594, The IRS Collection Process PDF and in Offer in compromise.

Topic no. 206, Dishonored payments

Responding to taxpayer inquiries:

My check (payment) didn't clear. What now?

• At times, taxpayers will call the IRS because they received a Letter 608C, Dishonored Check Penalty Explained, stating their payment was dishonored from a financial institution and returned unpaid. When this letter is sent out to the taxpayer, the check is determined to be unpaid and the IRS won't resubmit it for payment. The IRS doesn't resubmit checks or other commercial payment instruments a second time for payment.
• When a check or other commercial payment instrument isn't paid, however, the clearinghouse does frequently resubmit it to the bank.
• The clearinghouse, not the IRS, determines whether or not to resubmit a payment so the IRS doesn't know if the payment instrument will be submitted a second time or not by the clearinghouse. It's up to you to decide whether to wait and see if the clearinghouse resubmits it to the bank, or whether you should make an additional payment.
• If your check or other commercial payment instrument is resubmitted and there are sufficient funds in your bank account to cover it, the check will be paid and not returned to the IRS, so you won't be charged the dishonored check penalty. If the payment is honored after the due date, however, you may be charged interest and a penalty for the late payment. We'll notify you if a balance becomes due on your account.

How is the penalty calculated?

When a check or other commercial payment instrument the IRS receives for payment of taxes doesn't clear the bank, a penalty of 2 percent of the amount of the check or other commercial payment instrument generally applies. However, if the amount of the check or other commercial payment instrument is less than $1,250, the penalty is $25 or the amount of the check or other commercial payment instrument, whichever is less. Thus, if the amount of the check or other commercial payment instrument is between $25 and $1,250, the penalty is $25.

Requesting penalty abatement

The IRS can abate (remove) this penalty in certain circumstances. You may request penalty abatement by providing an explanation or evidence that it was reasonable to expect that the payment would be honored. You must make this request in writing, and should only do it after you've received the Letter 608C notifying you of a penalty assessment.

Stop payments

A dishonored check penalty isn't assessed on checks or other payment instruments for which you placed a stop payment order. If you're assessed a penalty, please send a copy of the stop payment request along with your penalty relief request to the service center address listed on your Letter 608C.