The answer is: NO. A private creditor cannot garnish the federal government for an income tax refund. The idea that the IRS cannot be garnished is based on the federal government’s sovereign immunity stemming from Article III, Section 2 of the U.S. Constitution.
Can a government agency garnish your tax refund?
Government agencies frequently garnish federal income tax refunds since they are the most common federal payments. The TOP is the only way your refund can be garnished; private creditors such as credit card companies don’t have access to your tax refund. Moreover, only certain types of government debts are eligible for TOP. These include,
Can a tax refund be garnished if you owe child support?
The state can continue to garnish tax refunds each year until all child support payment obligations are satisfied. Any federal agency you owe has the next shot at garnishing your tax refund. You’re current with your federal income tax obligations.
How long does it take to get a tax refund after a garnishment?
It could take up to 18 weeks longer to process a refund with a garnishment than it does a refund that has not been garnished. A garnishment is a legal process executed through a court order in favor of the creditor (plaintiff).
Can a state garnish an income tax refund?
Before any other federal or state agency can garnish your tax refund, you must be current on your federal income tax payments. This is because the outstanding taxes you owe to the IRS must always be paid first. The state can continue to garnish tax refunds each year until all child support payment obligations are satisfied.
Can a debt collector garnish 25% of your income?
If debt collectors garnish more than 25% of your income, then you can bring the matter at the local court. Government agencies, including the IRS also can withhold your tax refund without giving attention to percentages, but they still can’t break federal and state law when garnishing your wage.
Can a tax refund be garnished for child support?
Your federal income tax refund can typically only be garnished for federal or related government obligations. If you owed the IRS, child support back pay, or federal student loans, your federal income tax refund can potentially be garnished.
