What This Notice Means

The IRS garnished your state tax refund to pay your federal taxes. If you disagree, you have the right to a Collection Due Process (CDP) hearing.

This means your account is in active collection. The state refund is gone. The question now is what happens next.

What to Do

  • Pay what you owe. If you can't pay in full, look at payment plans, an offer in compromise, or a temporary delay of collection.
  • Call the number on your notice if you've already paid in full or think a payment is missing.
  • If the IRS told you collection is suspended because of financial hardship, you don't have to do anything.

Your Right to a Hearing

If you disagree, submit Form 12153, Request for a Collection Due Process or Equivalent Hearing, by the due date on your notice. Reasons to request one include:

  • You don't agree with the amount due.
  • You have additional information that may affect your case.
  • You want to contest this levy and future levies.

A CDP hearing is also a place to propose a resolution, such as a payment plan. Missing the date gives up that right. Don't miss it.

What Can Come Next

The IRS can file a Notice of Federal Tax Lien (NFTL). An NFTL is a public notice that the IRS has a claim against your property, including wages and income, bank accounts, business and personal assets like your home and car, state tax refunds, and Social Security benefits. It can affect your ability to get credit.

If your debt is large enough to pass the yearly threshold, the State Department may deny or revoke your passport.

Getting Help

You can have a representative contact the IRS for you by sending a completed Form 2848, Power of Attorney and Declaration of Representative.

If the IRS took your state refund and you want to stop further collection, call us at (813) 229-7100. Don't let the hearing deadline pass.