Yes, they need a court order. In fact, have to sue you for whatever amount. If they demanded you give it to them simply because you owe them money. You don't have to give it to them, but that will...
No, neither federal nor state tax refunds are subject to creditor garnishment or seizure. Tax refunds can only be seized or garnished for, taxes that are due, child support, federally funded student...
A creditor cannot seize a federal tax refund, but the creditor can file a lawsuit and if they are awarded a judgment they can levy the bank account in which a tax refund is deposited.
Related ads:
Shopping for Taxes and Tax Preparation deals?
Find Coupons and Promo Codes on Coupons by Answers.com