I had an account with chase bank and the account ended up becoming over drafted about 1,000 dollars. i just received notice on what i will be receiving for my refund on my taxes and I'm wondering will they have the power to automatically deduct the debt from my state or federal tax return.?
a 1000$ over draft? seriously!. no chase can't get your tax returns if doesn't go to the account. unfortunately if it goes to account in Chase - your money is GONE.
Yes, if you are getting the refund direct deposited into that account. Kind of an important point you missed there buddy.
Only if you have your refund sent to that account or another account at Chase. Otherwise the IRS does not collect on private debts.
If it's going to ANY account at Chase, they will grab it and apply it against what you owe. Banks have a standard right of offset to take funds from one account to pay amounts owed under another account. If it's going to a bank other than Chase, it's safe.
Once the refund amount is in that bank account then it is no longer a separate FIT refund amount and yes they would take care of your over draft amounts and NO the amounts would never be deductible on your income tax returns ever at all. Hope that you find the above enclosed information useful. 04/03/2013
