The IRS giveth, and the IRS taketh?
March 26, 2020 8:25 AM   Subscribe

Husband and I owe back taxes to the IRS. We've set up a payment plan, and are making monthly payments. About the $1,200 Covid-19 check: will the IRS zap it out of our account as soon as it's zapped in? Will we even be notified thusly? I've read all the Q & A about the checks in all the news sources, but the back taxes scenario isn't addressed.
posted by BostonTerrier to Work & Money (7 answers total) 2 users marked this as a favorite
 


I was just looking to see if I qualify and came across this info: Will you qualify for a $1,200 COVID-19 stimulus check?

Relevant part:
Q: What if you owe back child support or owe the IRS back taxes?

This is not directly linked to the IRS, so it does not appear the government will take anything out of your check for unpaid taxes or support, but the final version could change.
This was updated today so I guess that's all that is known so far.
posted by primalux at 10:11 AM on March 26 [1 favorite]


Here is what I found and reported in the previous thread.

The screenshot of that Tweet linked by Nonsteroidal Anti-inflammatory Drug (eponysterical?), is a screenshot of page 154 of the bill linked above. I am not a lawyer or a tax accountant, but if you read the full text on page 154 it appears as if it will NOT be withheld.

Line 13 of page 154 says, "...shall not be--" and then if you go to line 20 it says, [shall not be--] "reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection."

I think that is the answer. One gets the check regardless of back taxes owed. I am no expert, but that is what I will be sending to my friend. I also have a call into the IRS to ask them how they interpret this.

posted by AugustWest at 11:14 AM on March 26


F.A.Q. on Stimulus Checks, Unemployment and the Coronavirus Bill (NYT)
If you’re worried about money that you owe that you cannot pay, the I.R.S. recommends consulting a tax professional who can help you request an alternative payment plan or some other resolution.
See Also: Your Money: A Hub for Help During the Coronavirus Crisis (NYT)
posted by katra at 12:13 PM on March 26


The 2008 stimulus (the Bush one, not the 2009 Obama one) was accomplished by tax credits and in that case your refund was held back if you owed money. So if you see anyone mentioning it happened to them on a previous stimulus payment, it might have been this situation.
posted by JoeZydeco at 1:16 PM on March 26


This just in from NBC News:

Q: I owe back taxes. Will the IRS snatch my check?

The bill doesn't exclude you from getting a payment if you owe past due taxes. That said, the IRS has yet to set up the new system.


Well, okay. Needless to add, the whole $2,400 (total for this joint-return household) will go toward the IRS nut. Easy come, easy go!
posted by BostonTerrier at 2:11 PM on March 26


The NYT article in katra's first link says:
If my income tax refunds are currently being garnished because of a student loan default, would this payment be garnished as well?

No. In fact, the bill temporarily suspends nearly all efforts to garnish tax refunds to repay debts, including those to the I.R.S. itself. But this waiver may not apply to people who are behind on child support.
posted by soelo at 8:02 AM on March 27


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