Refund Claimed By State Agency, Local Agency or IRS

Refund Claimed By State Agency, Local Agency or IRS

Before a refund can be issued by the Revenue Department, we are required to check for any outstanding debt that you may have with agencies of North Carolina or the IRS for which we have received notification. If any such debt is found, the amount you owe may be deducted from your refund.

State and local agencies of North Carolina may file a claim with the Revenue Department for a taxpayer's refund. If your refund is applied against your debt to another agency, the Revenue Department will send you a notice to identify the agency receiving your refund and the telephone number of the agency. If you file a joint tax return, your spouse's portion of the refund will not be applied to your debt.

If you owe the IRS, the total refund shown on your return may be sent to their agency. If you filed a joint return, there is no provision in State or Federal law that allows the Revenue Department to prorate your refund. If you have "innocent spouse" status or "injured spouse" status with the IRS, you will need to contact the IRS for any refund that may be due.

If you have had all or a portion of your refund withheld because of such a debt and you have questions regarding that debt, you should contact the agency which claimed your refund rather than the Revenue Department.