- Tax refund interception
A tax refund interception is the act of an agency responsible for sending
tax refunds using all or part of a refund to fulfill an obligation of the taxpayerrather than sending the money to the taxpayer him/herself. Such provisions exist within the laws of some governments to force a taxpayer to pay off certain types of debt.
Some common obligations for which tax refunds are intercepted include outstanding
taxes, student loans, child support, fines, restitution, and wage garnishments. While taxes are sometimes intercepted to pay off the balance to a government-operated collection agency, most places do not allow refunds to be intercepted to pay a private collection agency.
In the United States, the
IRSallowed federal tax refunds to be intercepted to pay off obligations to a U.S. stateif that state has reported that obligation to the federal agency.
In 2008, nearly $2 billion of tax rebate funds from the
Economic Stimulus Act of 2008were confiscated to pay of back taxes, child support, or student loans [http://money.aol.com/news/articles/_a/feds-confiscate-2-billion-from-rebates/20080625142509990001?icid=200100397x1204833121x1200205359] .
Wikimedia Foundation. 2010.
Look at other dictionaries:
Interception (disambiguation) — Interception may refer to:*Interception (football), a situation when a quarterback s pass is caught by a player on the opposing team *Interception (water), the interception of precipitation by vegetation *Telephone tapping, the interception of a… … Wikipedia
Payday loan — A shop window in Falls Church, Virginia advertises payday loans. A payday loan (also called a paycheck advance) is a small, short term loan that is intended to cover a borrower s expenses until his or her next payday. The loans are also sometimes … Wikipedia
Predatory lending — describes unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. While there are no legal definitions in the United States for predatory lending, an audit report on predatory lending from the office of… … Wikipedia
Collection agency — A collection agency is a business that pursues payments of debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. There are many… … Wikipedia
Child support in the United States — Main article: Child support The law governing child support in the United States varies state by state and Native American tribe by tribe; each individual state and federally recognized tribe is responsible for developing its own guidelines for… … Wikipedia
Loan — For other uses, see Loan (disambiguation). Finance Financial markets … Wikipedia
Consumer debt — Finance Financial markets Bond market … Wikipedia
Municipal bond — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Government debt — Public Finance A series on Government … Wikipedia
Bond (finance) — In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity.… … Wikipedia