Non-tax federal debt consists of direct loans, secured loans in arrears, and administrative debts (for example, Iowa Legal Aid provides help to low-income Iowans). We also have significant, dynamic and professional opportunities for volunteers. Iowa Legal Aid provides legal help to low-income Iowans who face legal problems related to civil (not criminal) legal issues. Iowa Legal Aid helps make the legal system work for those who would not otherwise be able to afford the help of an attorney.
Find legal help in other states Iowa Legal Aid is a non-profit organization that provides critical legal assistance to vulnerable, low-income Iowans who have nowhere else to turn. Sometimes, tax refunds are accepted for debts that are not due to the IRS. The most common examples are child support debt, student loan debt, and state tax debts. When repayments are made for debts other than the IRS, they are made through the Treasury Compensation Program (TOP).
They can have their Social Security retirement or Social Security disability benefits reduced to pay off non-tax debt. If an agency informs you or your spouse that your tax refund will be withheld to pay your spouse's debt, you may be able to file a claim for “injured spouse” along with your joint tax return. If you feel that you should not be responsible for your spouse's tax debt after you sign a joint return, you may have an “innocent spouse” claim, which is different from an “injured spouse” claim. Any earned income tax credit will be divided between you and your spouse based on how much each of you earned, that is, your contribution to your joint adjusted gross income.
LITCs represent people whose incomes are below a certain level and who need to resolve tax issues with the IRS. As compensation has occurred from TOP, you have received a notification from BFS stating that your refund was used to pay a non-tax debt. If your tax refund was offset to pay a joint federal tax debt and you believe that your spouse or former spouse should be held responsible for all or part of the balance due, you should apply for a relief from liability. Taxpayers with hearing problems can use the Federal Relay Service by calling 800-877-8339 to contact a communication assistant (CA) who will call the toll-free number for you.
For example, any tax due on a tax return filed as “married filing a joint return” is a debt owed jointly. Your share of the refund is based on the amount of federal income tax withheld from your paycheck or the estimated tax payments you made on income from your self-employment. The Department of the Treasury and the Social Security Administration are working together to collect non-tax debts owed to the U. We can offer you help if your tax problem is causing you financial difficulties, if you have tried to resolve your problem with the IRS and have not been able to resolve your problem with the IRS, or if you think that an IRS system, process, or procedure simply isn't working as it should.
LITCs can represent taxpayers in audits, appeals and tax collection disputes before the IRS and in court. The Office of the Tax Service (BFS), which is part of the Department of the Treasury, initiates compensation for repayments of outstanding debts from federal or child support agencies, state income tax liabilities, and unemployment compensation debts.