IRS Keeps refund?

[ZmansGirl09]

What is the name of your state (only U.S. law)? Nevada

I have a tax debt of just over $5,000.

A repayment plan is in place; I have been paying monthly for some time.

The debt was the result of something ridiculous that should have never happened (failing to properly adjust my W4). Of course, when I realized what happened, I immediately adjusted my W4. I won't go in to debt again but obviously, I owe what I owe.

I've been told by 'people' that should 2010 bring a refund, that the IRS will keep it because I haven't paid the full $5,000 off yet.

I'm not saying that its good or bad or anything in between if this is indeed true. I just want to know if its true.

 

[Antigone*]

What is the name of your state (only U.S. law)? Nevada

I have a tax debt of just over $5,000.

A repayment plan is in place; I have been paying monthly for some time.

The debt was the result of something ridiculous that should have never happened (failing to properly adjust my W4). Of course, when I realized what happened, I immediately adjusted my W4. I won't go in to debt again but obviously, I owe what I owe.

I've been told by 'people' that should 2010 bring a refund, that the IRS will keep it because I haven't paid the full $5,000 off yet.

I'm not saying that its good or bad or anything in between if this is indeed true. I just want to know if its true.

You are not entitled to a refund if you have tax debt. Just look at it this way, you debt will be paid off much sooner than expected.

 

[ZmansGirl09]

okie dokie. I do the IRS's W4 calculator every month, just to make sure I'm still on track (the $5K debt is nasty and I DON'T want a repeat).

But I did wonder.

Thank you.