IRS Confirms Tax Refunds Not Sent to These Louisiana Residents

All across Louisiana accountants, bookkeepers, financial professionals, and shysters are getting ready for their annual dance with "the devil" that is the Internal Revenue Service. For residents of Louisiana cities large and small, the promise of a refund from Dear Old Uncle Sam is reason enough to spend a few hours gathering W-2s, W-9s, Social Security Cards, and receipts so taxes can be filed and refunds returned.

Tax professionals in Lafayette, New Iberia, Baton Rouge, New Orleans, and other cities and towns will tell you that if you plan your finances wisely you won't owe taxes at the end of the year nor will you be getting an extraordinarily large refund. You did know there was a downside to getting a large refund, right?

Now if you are expecting a tax refund from the IRS you should know some folks in Louisiana will not be getting that money even if their tax preparer says they are owed one. There are several reasons why that refund could be delayed, reduced, or even canceled.

The most common reason for a delay or reduction in a refund is a simple mistake in the math involved in figuring out your taxes for a given year. There is also a more complex reason why some Louisiana residents won't be getting a tax refund this year. That has to do with what's known as the Treasury Offset Program. 

What the Treasury Offset Program does is collect past-due debts that people owe to state and or federal tax offices. It's really a lot of money. In 2024 the TOP recovered more than$3.8 billion in federal and state delinquent debts.

If you are delinquent on your federal taxes and have money coming in the form of a refund, the amount you owe will likely be deducted from your final check. Others who owe money for State Income Tax, child support, student loans, and other federal delinquencies could also have their refund reduced or denied. 

However, if your refund total is more than what you owe in delinquent charges you will be given the overage after the other obligations have been subtracted from the total amount. The deadline to file your taxes this year is April 15th.