Refund Offset Frequently Asked Questions

A Federal Offset is the forwarding of any or all of your federal income tax refund to the North Carolina Department of Revenue to satisfy an outstanding liability.

A State Offset is the forwarding of any or all of your state income tax refund to satisfy an outstanding state tax liability. It can also be sent to another state or federal agency, which has a claim against you.

Federal Refund Offset

What actions can I take to avoid a federal offset?

To avoid the federal offset, you must take one of the actions described below within 60 days from the date of the certified Notice of Intent to Offset.

  • Pay The Debt – You must pay the full amount listed on the Notice of Intent to Offset. Payments can be made by using debit/credit card (Mastercard/Visa), or bank draft via the NC Department of Revenue's online payment system or contacting an agent at (877) 252-3252. The Department also accepts personal checks, money orders and official bank checks. Mail payments along with the coupon at the bottom of the notice to P.O. Box 25000, Raleigh, NC 27640-0002. When paying in person at your local Collection Division Office, cash will be accepted. If payment is made after the interest through date specified on the notice, please call 877-252 3252 for the updated amount.
  • Bankruptcy – For questions concerning bankruptcy, view the bankruptcy page available on this site.

My spouse and I filed a joint federal tax return and our refund was offset for a debt that my spouse owes. How can I get my portion of the refund back?

You must complete IRS Form 8379 from the IRS website, call the IRS at 1-800-829-3676 or visit your local IRS office.

I have been notified by a tax preparer that I cannot have a Refund Anticipation Loan because the NC Department of Revenue has a claim against my federal refund. What action should I take?

The taxpayer may call 1-877-252-3252 to verify the amount owed to the Department of Revenue.

Allow your preparer to submit your tax returns without the refund anticipation loan. When the refund is offset, you will be notified as to the amount of refund subject to offset.

What happens if after the NC Department of Revenue receives my federal refund it overpays my account?

If all your accounts are in balance with the NC Department of Revenue and there are no active accounts with other State agencies, the overpayment will be refunded to you.

If I have filed bankruptcy, will my refund be offset?

For questions concerning bankruptcy, view the bankruptcy page available on this site.

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State Refund Offset

I received a notice that my state refund was forwarded to another agency. Who should I address my questions to?

Any questions or issues must be resolved with the agency that the refund was forwarded to. The agency’s contact information should be listed on the notice you received.

If I have filed bankruptcy, will my state refund be offset?

For questions concerning bankruptcy, view the bankruptcy page available on this site.

 

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