Skip Navigation
Michigan, Official Portal for the State of Michigan 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. The Pre-Petition debt exists and is not included for payment through the business bankruptcy.
    3. The confirmed plan 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
 •  Will the offset payment count towards my monthly Installment Agreement payment?
 •  What is an offset?
 •  I have an Installment Agreement and have been making timely payments. Why did Treasury take (offset) my refund?
 •  Will you take my income tax refunds and vendor payments?
 •  I paid this debt but it is still showing up on my credit report.
 •  How long does it normally take to release a lien?
 •  I need the State of Michigan to subordinate its lien so that I can sell or refinance my house.
 •  Can the State of Michigan transfer its lien to another piece of property?
 •  Why did the State of Michigan file a lien against property that I don't own? I just live there.
 •  Why did the State of Michigan file a lien against me when I don't have an outstanding debt with the State of Michigan?
 •  How can I have a lien removed from my property?
 •  Why am I receiving billings while I am in bankruptcy?
 •  I would like to set up an installment agreement on a bankruptcy account.
 •  Why did I get this bill?
 •  I want to talk to someone in person about my bill.
 •  What is the Michigan Accounts Receivable Collection System (MARCS) and why do I have to deal with them?
 •  What is the physical address of the Treasury Building for overnight and Federal Express mail delivery?
 •  Why am I being held responsible for a corporation's debt?
 •  Where do I send my payment?
 •  What should I do if I cannot pay my debt in full?
QR code Home
PoliciesMichigan Survey

Copyright © 2014 State of Michigan