Myth and Facts About the IRS Debt Indicator and Taxpayer Transparency
The IRS Debt Indicator (DI) was a tool that informed taxpayers and tax preparers whether a taxpayer’s federal income tax refund would be offset due to outstanding federal debts such as unpaid taxes, child support, or student loans. Though discontinued in 2011, recent economic trends and policy shifts indicate the DI should be restored. Myth:…

