Why Is My Refund Lower Than Anticipated?
If you have certain kinds of debt, including federal and state back taxes, child support, and student loans, then the Bureau of the Fiscal Service (BFS) – part of the Department of Treasury – can use your tax refund to offset that debt.
Should your refund be used in this manner, then you will receive a letter from the BFS explaining how much of it was taken as payment. The IRS Tax Tip outlining this process contains other information related to these offsets.
To read the original article from the IRS, click here.
Source: Internal Revenue Service