Up to the Minute...

Press Release
March 23, 2007

Taxpayers Question Partial Income Tax Refunds

Many taxpayers have called the Oklahoma Tax Commission this tax season as they have received only a portion of their refund. This partial refund is generally their Sales Tax Relief credit. In most cases, the remainder of the refund has been "snagged" or "warrant intercepted" due to an outstanding liability with either the Oklahoma Tax Commission or another government entity.

If your refund check has been "snagged", the Tax Commission has applied all or part of the refund to a past due Oklahoma tax liability.

If the refund has been "warrant intercepted", a state agency, one of the 77 Oklahoma district court clerks offices, or the IRS have requested your state refund check to pay on a debt owed (doctor bills, child support, traffic tickets, school loans, federal taxes, etc.).

Calls have been received by the Agency over the last few weeks as taxpayers received the Sales Tax Relief credit portion of their refund and nothing else. This amount is in $40 increments, i.e. $40, $80. $120, etc. Taxpayers are sent a letter regarding the hold on the remainder of their refund. However, with the speed of refund processing, the check usually arrives first.

"Taxpayers are receiving these partial refunds and immediately calling the Oklahoma Tax Commission," said Paula Ross, Agency Spokesperson. "They are assuming there has been some kind of mistake."

"Taxpayers are given the chance to clear up their outstanding liability with the state entity by means given in the letter. For further information regarding an intercepted refund, the taxpayer will have to contact the agency that has intercepted the refund," said Ross. "The Oklahoma Tax Commission only holds the money while the taxpayer and the intercepting agency resolve the issue."

If taxpayers have questions after receiving a partial refund or about an Oklahoma Tax Commission liability, they may contact the Commission's Account Maintenance Division regarding a possible intercepted refund. The Division can be reached at (405) 521-3151.