DOR Taxation web site

Refund Intercepts

If a taxpayer owes a past debt to an agency of the State of Colorado, the income tax refund could be intercepted by the Department of Revenue to satisfy the debt. When a refund is intercepted, the Department of Revenue sends a letter explaining which agency initiated the intercept, the amount of the refund intercepted and the state agency and phone number to contact for further information. If the refund is intercepted for a state tax debt, the taxpayer will receive a letter about the debt from the Colorado Department of Revenue.   If the debt is smaller than the refund, the taxpayer will receive the difference.

If a taxpayer believes the refund has been intercepted in error, the taxpayer must contact the agency initiating the interception in order to clear up the problem.

Instances in which a refund could be intercepted include:

 

  •  Debts for child or spousal support
  
  •  Aid to Families with Disabled Children (AFDC)
  
  •  Debts due to overpayment of unemployment benefits
  
  •  Unpaid student loans
  
  •  Judicial fines, fees, surcharges, judicial resititution or parking tickets
  
  •  Any other unpaid debt to the state
  

 

If a joint return is filed and the refund is "intercepted" because of one spouse's debt, the "injured" spouse may claim his/her portion of the total refund.  See Injured Spouse Claim.