arizona: I have worked out an arrangement with Arizona to make reasonable monthly payments.|||If AZ has submitted your tax debt to FMS for collection your Federal refund IS subject to capture for it. You'll have to ask the AZ tax authorities if they've submitted it to FMS for capture. You will normally receive a letter in December sometime advising you if your refund has been submitted for capture. Of course that would only include something that FMS is already aware of. You can also call 1-800-304-3107 to access the FMS auto-responder. You punch in your SSN and it will tell you if your refund has been subject to capture.|||TFTP. Report Abuse |||i wouldnt bet on seeing any money going to you untill your paid up|||Probably your federal refund will be used to wipe out your debt, even though you have monthly payment plan. You owe and they want their money.|||It shouldn't because there is not receprocity with the States and the Federal Government with regard to taxes. Just keep to the arrangement with Arizona and you will not have any problems. By problems, I mean potential garnishment of your current wages.|||You need to ask a tax consultant from your state...|||No, they share income information with each other, but do not take fed tax refunds for state taxes owed. If you have a payment agreement with the state and do not break the agreement, then you are fine.