Frequently Asked Questions
Why are you taking my federal refund?
The Louisiana Department of Revenue (LDR) participates in a federal offset program once an individual tax liability has reached final status plus 60 days the liability is posted with the federal Financial Management Service (FMS). The federal program will garnish federal refunds for the state tax liability and remit the garnished refund to the Department to apply to the taxpayer’s liability. All taxpayers are notified of LDR’s participation in this program when the taxpayer is issued a Notice of Intent to Offset. This is issued once a liability has reached final status in the billing process. In return for our participation, LDR will offset Louisiana tax refunds by the amount of outstanding Federal Tax Liability. LDR also offsets Louisiana refunds for other state agencies and governmental entities.