Idaho State Tax Commission

Idaho State Tax Commission

Tax Commission News Release

Some state income tax refunds diverted to pay legal obligations

BOISE, IDAHO — March 17, 2010 — Taxpayers who didn’t receive all or part of their Idaho income tax refund may find that the money was diverted to pay legal obligations like court fees, child support, and sheriff’s garnishments.

According to the Idaho Tax Commission, state and federal laws allow certain government agencies and bankruptcy trustees to take income tax refunds to pay debts owed to them.

For example, the Idaho Supreme Court recently began diverting refunds to apply to unpaid court-ordered fines, fees, and restitution, including unpaid debts that date back to the 1990s or earlier.

Other agencies that can take refunds include:

  • Idaho Department of Health and Welfare (usually for unpaid child support)
  • Idaho Department of Labor (for unreimbursed unemployment overpayments) 
  • County Sheriff departments (for sheriff’s garnishments) 
  • Internal Revenue Service (for unpaid federal tax debts)

The Tax Commission has no role in this process other than sending all or part of a state income tax refund to the appropriate agency at its request. The appropriate agencies will notify taxpayers about the refund diversion.

For detailed information, taxpayers should contact the agency that seized their refund.

Posted 03-17-2010

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