Refund Interception

  1. Why did the Department of Revenue (DOR) take my refund?
  2. What kinds of debts are eligible for refund interception?
  3. What happens if I filed a joint return and have a divorce decree, or I plan to file an injured spouse claim?
  4. How are disputed claims handled?
  5. Is my federal tax refund subject to refund interception?
  6. What other payments may be intercepted?
  1. Why did the Department of Revenue (DOR) take my refund?

    The DOR is authorized to deduct the amounts from any state tax refund and refundable credit for the following government agencies:

    • Tax related debts owed to DOR
    • Debts owed to a state agency or state, county or municipal court
    • Debts owed to counties or municipalities
    • Tax related debts owed to the IRS
    • Debts owed to the federal government
    • Debts owed to a Federally recognized tribal government located in Wisconsin
    • Debts owed to other states
  2. What kinds of debts are eligible for refund interception?

    Delinquent tax debt is eligible for collection through refund interception.

    Any debt owed to state agencies, counties, and municipalities may be certified to DOR for collection through refund interception. In addition, DOR may enter into agreements with federally recognized tribes, and other states for debt collection purposes. Each of these agencies are required to send a notice to you to tell you that the debt was certified to DOR for collection and to provide you with the opportunity to discuss or resolve the debt.

    Debts owed to the Federal government, including delinquent tax debts certified by the IRS, are eligible for collection through refund interception.

  3. What happens if I filed a joint return and have a divorce decree, or I plan to file an injured spouse claim?

    Debt owed to DOR: If you were divorced after June 20, 1996, and your divorce decree apportions any tax liability owed to the department, attach a copy of your divorce decree to your tax return and fill in "04" in the Special Conditions box on page 1 of your return.

    If you are filing federal Form 8379 (Injured Spouse Claim and Allocation), attach a copy to your tax return and enter "05" in the Special Conditions box on page 1 of your return.

    If you file your return electronically, please mail a copy of Form 8379 or your divorce decree to the address shown below.

    In all instances, this will help DOR staff determine how to allocate your refund, but because these are manual processes, they may delay your refund.

    Debt owed to another state agency or Federal government: Joint returns are automatically prorated by DOR staff if the debt is owed to a state agency or the Federal government, so it is not necessary to attach a copy of your divorce decree or injured spouse claim to your return. Only the debtor's portion of your refund will be set off against the debt.

    Debt owed to local government, tribal government, or other state: Debts owed to local governments are presumed by DOR to be incurred during the marriage and are collectible from all marital property and owed by both spouses.

  4. How are disputed claims handled?

    If your refund was intercepted for a delinquent tax debt and you have questions or disagree with the claim, please call the department at (608) 266-7879.

    If your refund was intercepted for a debt owed to the Internal Revenue Service and you have questions or disagree with the claim, please call the IRS at 1-800-829-7650.

    If you receive a notice that your refund was intercepted and you have questions or disagree with the claim, please call the agency telephone number listed on your notice.

  5. Is my federal tax refund subject to refund interception?

    The federal government may reduce your federal income tax refund to pay individual income tax debts owed to the DOR.

  6. What other payments may be intercepted?

    Lottery Prize Winnings: Any lottery prize winning greater than $1,000 may be intercepted to pay tax-related debts owed to DOR or debts owed to state agencies.

    State Issued Vendor Payments: Payments issued by a state agency for goods or services may be intercepted to pay tax-related debts owed to DOR, debts owed to state agencies, or debts owed to local governments.

    Federal Payments: Payments issued by the federal government, other than benefit or salary payments, are eligible for interception to pay tax-related debts owed to DOR.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Refund Interception Assistance
P.O. Box 8901
Madison, WI 53708-8901
Phone: (608) 266-7879
Fax: (608) 261-8978
E-Mail Additional Questions

Last updated January 24, 2012