Notice setoff 2025

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to cause an activity or event, often a series of events, to begin or happen: The courts initial verdict in the police officers trial set off serious riots.
The net claim is known as a net position. In other words, a set-off is the right of a debtor to balance mutual debts with a creditor. Any balance remaining due either of the parties is still owed, but the mutual debts have been set off.
ˈset-ˌȯf. 1. : the reduction or discharge of a debt by setting against it a claim in favor of the debtor. specifically : the reduction or discharge of a partys debt or claim by an assertion of another claim arising out of another transaction or cause of action against the other party.
An example of this principle is, Andy owes Bob R100,00 and Bob owes Andy R150,00. Andy and Bob can set-off their debts, extinguishing Andys debt and reducing the amount Bob owes Andy to R50,00.
Simply put, a Notice of Intent to Offset is a letter warning you that the IRS is about to seize your tax refund. The notice will include the following critical information, which enables you to double-check that the intended deduction is correct: Your full name. The amount of your original IRS tax refund.
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