tamurack
Level 2

Client just moved to Virgin Islands for a job in the middle of the year from Alabama.  He owes the IRS for previous years' taxes.  He has a refund coming back but will file in the Virgin Islands.  Will the IRS take the refund from USVI and apply it to his back taxes since it is filed there?

0 Cheers
itonewbie
Level 15

U.S. possessions and territories are considered part of the U.S. for collection purposes, according to the IRM.  A quick check of the IRM also seems to suggest that there's no mechanism for refund offset, probably because taxes are administered independently.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
Marc-TaxMan
Level 8
As if I needed another reason to move to St. Croix!!
0 Cheers