Skip Navigation
Michigan TaxesMichigan.gov, Official Portal for the State of Michigan
Michigan.gov Home
close print view

Why did Treasury keep my income tax refund when I'm in bankruptcy?

Treasury's ability to withhold a taxpayer's income tax refund is determined by the chapter under which the bankruptcy was filed:
  • Chapter 7—The refund is held until a discharge is issued.
  • Chapter 11 (Business Filed)—Bankruptcy will offset an assessed officer's refund when:
    1. The business has defaulted in chapter 11 plan payments.
    2. Pre-Petition debt and not included for payment through the business bankruptcy.
    3. Plan confirmed will offset for Post Confirmation debt.
  • Chapter 11 (Corporate Officer filed)—If a plan has been confirmed and there are post-confirmation debts, Treasury will apply corporate officer refunds to post-confirmation assessments.
  • Chapter 13—Income tax refunds are returned to taxpayers.
Michigan Business One Stop
Link to Department and Agencies Web Site Index
Link to Statewide Online Services Index
Link to Statewide Web-based Surveys
Link to RSS feeds available on this site
Related Content
 •  What is an offset?
 •  I have an Installment Agreement and have been making timely payments. Why did Treasury take (offset) my refund? Will the offset payment count towards my monthly Installment Agreement payment?
 •  I would like to set up an installment agreement on a bankruptcy account.
 •  Why am I receiving billings while I am in bankruptcy?
 •  How do I request a penalty waiver?
 •  Will Treasury accept an Offer in Compromise?
 •  Will you take my income tax refunds and vendor payments?
 •  What is a Notice of State Tax Lien?
 •  What does a tax lien do?
 •  Why did I get this bill?
 •  Why am I being held responsible for a corporation's debt?
 •  I want to talk to someone in person about my bill.
 •  What should I do if I cannot pay my debt in full?
 •  Where do I send my payment?
 •  What is the physical address of the Treasury Building for overnight and Federal Express mail delivery?
 •  What is the Michigan Accounts Receivable Collection System (MARCS) and why do I have to deal with them?
 •  What is the difference between a lien, a levy and a warrant?
 •  Why did you place a tax lien on my property?
 •  I paid this debt but it is still showing up on my credit report.
 •  Where are the Registers of Deeds office?
QR code

Michigan.gov Home
PoliciesMichigan NewsMichigan.gov Survey

Copyright © 2014 State of Michigan