What is the Offset Program for taxes in Iowa? While the State of Iowa can withhold money for things like unpaid parking tickets, it cannot be taken out of your federal return. Author: Zach Sommers, Elias Johnson Published: 4:36 PM CDT April 1, 2021 Updated: 4:37 PM CDT April 1, 2021 IOWA, USA — Do you owe parking tickets to the City of Des Moines? Or a fine to Story County? Maybe you haven't paid what you owe the district court. These are just some circumstances when your Iowa tax refund will be held. In tax terminology, this is called an setoff. You'll get a letter from whatever agency you owe money to, giving you the chance to pay. If you don't, that agency says it will then deduct that amount from your state refund.