The IRS or a creditor likely took your refund, and you can find out which one
When your tax refund doesn't arrive, one of three things happened: the IRS kept it to cover a debt you owe them, a state or federal creditor seized it through the Treasury Offset Program, or there's a processing error. The IRS publishes a list of reasons they offset refunds, and you can check your account to see which one applies to you. Most of the time, you'll find the answer in your IRS transcript or a notice the IRS mailed to you.
The process is called offset, and it's legal. The government can take your federal refund to pay back taxes, unpaid student loans, child support arrears, unemployment overpayments, or other federal debts. Some states can also claim your refund for state income tax debt or state-administered programs like child support. This happens automatically—you don't get a choice, and the IRS doesn't need a court order.
Key Takeaways
- Check your IRS account online at IRS.gov using your login credentials to see if the IRS offset your refund and why.
- The IRS mails a notice called CP-86 or CP-86H when they offset your refund; look for this in the mail or request a copy from the IRS.
- If a creditor other than the IRS took your refund, the IRS will have sent it to them through the Treasury Offset Program, and you can request a detailed report.
- You can dispute an offset if you believe it was applied to the wrong person's debt, but you must act within a specific timeframe.
- If the IRS made an error, you may be able to recover the refund, but you'll need documentation of the mistake.
How to check your IRS account for offset information
The fastest way to find out what happened is to log into your IRS account at IRS.gov. You'll need your Social Security number, date of birth, and either a filing status or tax return information to verify your identity. Once you're logged in, look for the "Tax Records" or "Account" section. The IRS displays offset information there, including the amount taken and the reason.
If you don't have an online account, you can call the IRS at 1-800-829-1040 and speak to a representative. Have your Social Security number, filing status, and the tax year in question ready. The IRS can tell you over the phone whether your refund was offset and to whom it was sent. This call is free, and wait times vary by season—early morning calls typically have shorter waits.
The CP-86 notice: what it says and what to do with it
When the IRS offsets your refund, they mail you a notice. The most common one is called CP-86 or CP-86H. This notice arrives separately from your tax return and explains what debt triggered the offset, how much was taken, and which agency now has the money. Read it carefully—it contains the information you need to dispute the offset if you believe it was wrong.
If you didn't receive this notice, request one from the IRS. You can ask for it by calling 1-800-829-1040 or by mailing Form 4506-C (Request for Transcript of Tax Record) to the IRS address for your state. The transcript will show the offset and the date it occurred. Keep this notice or transcript—you'll need it if you want to challenge the offset or if you're trying to recover the money.
When a creditor other than the IRS took your refund
If the IRS offset your refund to pay a debt you owe to another agency—such as unpaid student loans, child support, or an unemployment overpayment—the IRS sent the money to that agency through the Treasury Offset Program. The IRS notice will tell you which agency received it. From there, the money goes to the creditor or the state program that reported the debt.
To find out the exact status of your refund with that creditor, contact them directly. For federal student loans, call the loan servicer or the Department of Education's Federal Student Aid office. For child support debt, contact your state's child support enforcement agency. For unemployment overpayments, contact your state's unemployment insurance office. Each agency can tell you whether they received the offset and how it was applied to your account.
Disputing an offset if you believe it was wrong
You can challenge an offset, but you must act quickly. The IRS gives you a limited window—usually 60 days from the date on the offset notice—to request a hearing or submit a written protest. The grounds for dispute are narrow: the debt doesn't belong to you, the amount is wrong, or the offset violated your rights in some way (for example, if you're may have access to to a hardship exemption).
To dispute, contact the IRS office that issued the offset notice. The notice itself will tell you where to send your protest. You'll need to explain why you believe the offset was wrong and provide documentation—such as proof that the Social Security number on the debt belongs to someone else, or evidence that you already paid the debt. If you're disputing a student loan offset, you may have additional options through the Department of Education's dispute process, which is separate from the IRS process.
What to do if the IRS made a processing error
Sometimes the IRS offsets a refund by mistake—for example, if they applied an old debt to the wrong tax year, or if they offset after you'd already paid the debt. If you believe this happened, gather your documentation first: proof of payment, correspondence showing the debt was resolved, or evidence that the debt belongs to someone else.
Contact the IRS and explain the error. You can do this by phone at 1-800-829-1040, by mail, or through your online IRS account. The IRS will investigate and, if they find an error, issue you a refund for the amount that was wrongly offset. This process can take several weeks to several months, depending on how complex the error is. Keep copies of everything you send to the IRS and note the date and name of any representative you speak with.
How long it takes to recover an offset refund
If the IRS determines they made an error, the refund process depends on how they offset the money originally. If it went to another federal agency, that agency must return it to the IRS first, which can add weeks. If it went to a state program, the state must process the return. In most cases, you'll see the refund within 4 to 6 weeks after the IRS approves your claim, but it can take longer if multiple agencies are involved.
If you're disputing the offset itself rather than claiming an error, the timeline is different. A dispute hearing can take 2 to 3 months, and the IRS may hold the refund during that time. If you win the dispute, the refund is released. If you lose, the offset stands and the money goes to the creditor.
Frequently Asked Questions
Can the IRS offset my refund for a debt that's older than 10 years?
Yes. The statute of limitations on collecting a tax debt is 10 years, but the IRS can still offset your refund during that time. Once 10 years have passed from the date of assessment, the IRS cannot collect the debt through offset or other means. If you believe your debt is past the 10-year mark, contact the IRS with proof of the assessment date.
What if I'm married and only my spouse owes the debt?
If you file jointly, the IRS can offset the entire refund, even if only one spouse owes the debt. You may be able to claim Injured Spouse Relief to recover your portion of the refund. You'll need to file Form 8379 with the IRS, usually within a year of the offset. This process is separate from a regular offset dispute and requires proof of your income and tax withholding.
Will I get a refund if the offset was for child support I'm paying through the court?
No. If you owe child support arrears, the offset is legal and final. The money goes to the custodial parent or the state child support program. You cannot dispute the offset itself, but you can contact your state's child support enforcement agency to verify the amount owed and explore payment plans or modifications to your support order.
How do I know if my refund was offset or if it's just delayed?
Check your IRS account online or call 1-800-829-1040. The IRS can tell you when ready whether your refund was offset or is still processing. If it's processing, they can give you an expected delivery date. If it was offset, they'll tell you the reason and the amount taken.