[Dr.Syn]

If a state owes you a tax refund and does not pay it, can you withhold any future tax payments up to the amount that is owed plus interest...and penalties?

[libstripper]

If a state owes you a tax refund and does not pay it, can you withhold any future tax payments up to the amount that is owed plus interest...and penalties?

Maybe not interest and penalties, but possibly the principal. The Federal Govenment allows taxpayers to offset refunds against future payments of estimated tax. If a state, like California, allows such offsets, then that would be a good way to collect an unpaid refund.

[Grampa Dave]

Yes.