Can a Person Receive a Tax Refund if They are Currently in a Payment Plan for Prior Year’s Federal Taxes?
Answer: As a condition of your agreement, any refund due you in a future year will be applied against the amount you owe.
· Continue making your installment agreement payments as scheduled because your refund is not considered as a substitute for your regular payment due.
· You may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support.
· IRS will automatically apply the refund to the taxes owed.