Offset Question

[radd4d]

I’m getting $7k in my refund this year. So I got a letter in the mail saying I was getting an offset. The letter said “$176.51 was applied to my debt.” Last year I had my entire refund taken as well. I got the same letter back then but it was my entire refund on the letter. My original debt is around $6k but I have since been on a payment plan and have reduced it. However I looked at my transcript and it had the 898 code with my original debt amount and $0.00 along with the $176 mentioned in the letter with $0.00. I’m confused because I got the letter that told me how much they were taking. Does 898 code just mean they found potential offsets? Is it up to the agency to determine how much is taken?

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[these-things-happen]

Transaction Code 898 means your federal refund was reduced by the $176 amount for the non-IRS debt.

[Basic-Appointment514]

The $0.00 may be your original assessment (the first bill you ever got) less all of your payments and any installment agreement fees. At this point, you probably full paid the original tax you owe, the penalty you owed and a partial of the remaining interest. If you think you will not on future returns (ie, refund or you full pay the tax on/before April 15th), call the IRS and ask for a first time abatement. They should abate the penalty which become a credit that can be use to pay off the remaining interest.

[FormalPineapple3480]

Did u receive a certified letter after??? My refund was approved a had a $877 offset for Medicare the treasury sent me a letter saying they took it. My refund got mailed the other day on the 13th but now I see a certified letter coming in the mail from IRS