If you’re one of the many filers who woke up on February 18, 2026, to a tax refund deposit that was significantly less than you expected, don’t panic. It’s a shock to see less money, but finding out ‘who’ took it is easier than you think.
This guide is specifically for those facing a Tax Refund Reduced 2026 situation. Instead of waiting weeks for a letter, you can use the “Secret Offset Hotline” tonight to find the answer. Before you call, verify your original refund amount on your IRS Transcript Code 846.
Understanding Code 203 and the TOP
When your tax refund is reduced, the IRS assigns Topic 203 to your status. This means the Bureau of the Fiscal Service (BFS) has intercepted part or all of your refund to pay a debt. This is different from bank fees; if you see a small reduction, check our guide on SBTPG & Pathward Fees.
If you see this code on the WMR Tool, it confirms an offset occurred. But WMR won’t tell you who took the money. For that, you need the hotline.
The Secret Hotline: BFS Treasury Offset Program
You don’t have to wait for the official notice (which can take 2 weeks). You can call the automated system right now to find out exactly who claimed your refund.
Prepare Before You Call:
- Your Social Security Number (SSN)
- A pen and paper (to write down the agency name)
- Your estimated refund amount
BFS Offset Hotline
Call this number to check for offsets against your refund:
800-304-3107(TTY: 866-297-0517)
Official Source: Bureau of the Fiscal Service
How to use it:
- Call the number.
- Select option “2” for personal offset information.
- Enter your Social Security Number.
- The system will list the agency name (e.g., Dept of Education) and the amount taken.
Who Took My Money? Common Reasons for Offsets
Your Tax Refund Reduced 2026 situation is likely due to one of these common debts. Learn more about offsets at the IRS Topic 203 page.
| Debt Type | Agency Responsible |
|---|---|
| Child Support | State Child Support Enforcement Agency |
| Student Loans | Department of Education (if in default) |
| State Tax Due | State Department of Revenue |
| Unemployment Comp. | State Unemployment Agency (overpayments) |
If you believe the debt is an error, you must contact the agency listed above, not the IRS. The IRS only processes the refund; the BFS takes the money.
FAQ: Tax Refund Reduced 2026
Q: Can I get the money back if I need it for hardship?
A: Generally, no. However, if you are facing severe hardship (eviction, utility shutoff), you can contact the Taxpayer Advocate Service (TAS) at 877-777-4778 for assistance.
Q: My spouse owed the debt, why did they take my part?
A: If you filed jointly, the entire refund can be offset. You should file Form 8379 (Injured Spouse Allocation) to get your share back. See our Joint Filing Guide for more details.
Q: Does the hotline work 24/7?
A: Yes, the automated system is available 24 hours a day. It is the fastest way to confirm an offset.