Some common obligations for which tax refunds are intercepted include student loans, child support, fines, restitution, and wage garnishments; however this is usually done if said debts are in considerable arrears.
Debtors who have been making agreed payments on the dot are usually not subject to this as creditors often feel interception unnecessary.
[5] Unlike private debts, refund interception for the said taxation will often occur even if prompt prior payments were made.
[6] Tax refunds are intercepted with the purpose of forcing citizens to comply to their required debts.
For example lottery winnings and state issued vendor payments may be intercepted if they are over a certain amount of money.