Taxes, Cash & Savings · Surprise rank #10
Owe the IRS? Stop Your Tax Refund From Being Taken When You’re in Financial Hardship!
In a severe financial hardship, the IRS may sometimes release part of a federal refund before it is applied to the taxpayer's own federal tax debt.
Who
Federal taxpayers facing documented economic hardship whose refund is about to be applied to their own IRS tax liability.
What to do
Start here: Contact the Taxpayer Advocate Service immediately before the expected offset and document the specific hardship and amount needed.
Eligibility: There must be qualifying economic hardship and the request generally must be made before the refund is offset.
What you get
The Offset Bypass Refund process can allow a hardship-based release of part of a refund that would otherwise offset federal tax debt.
Benefit: The portion of a federal refund needed to relieve the documented hardship, when the IRS approves the request.
Possible value: Depends on the refund, federal tax debt, and documented hardship need.
Good to know
Important: An Offset Bypass Refund must be requested before the IRS applies the refund to federal tax debt. It cannot bypass offsets for non-federal debts such as child support, and only the amount needed to relieve documented hardship may be released.
Availability: Active; extremely time-sensitive
Why people miss it: Most taxpayers learn about refund offsets only after the money has already been taken, which can be too late for this route.
Sources reviewed: Aug 10, 2026