Sounds like they will probably take it for the tax. Here is the info I found regarding this matter...
What is refund interception?
The Department of Revenue (DOR) is authorized to intercept, or set off, refunds, refundable credits, and lottery prizes against any tax-related debts owed to the Department. That is, if a taxpayer has a delinquent tax debt with DOR, the Department is entitled to deduct the amount of that debt from any state tax refund, refundable credit, or lottery prize issued by the Department to that taxpayer.
Similarly, DOR is authorized to intercept taxpayer refunds, refundable credits, and lottery prizes for debts owed to other state agencies and, in many cases, for debts owed to state counties and local governments and the Internal Revenue Service (IRS).
Refund interception for these entities will only occur after all amounts due to DOR are satisfied. Lottery prizes are prorated between DOR and other state agency debts, but are not eligible for interception for county, municipal, or IRS debts.
What kinds of debts are eligible for refund interception?
Any delinquent tax debt is eligible for collection through refund interception.
State agencies may certify any unpaid debt that has been reduced to a judgment or debts where the taxpayer has been afforded reasonable notice and the opportunity to be heard in regard to the debt. Several other types of debts, as specified in section 71.93(1)(a), Wis. Stats., including delinquent child or spousal support payments are also eligible. State agency debts must exceed $20.
Counties and municipalities may certify any parking citation, fine, fee, restitution, forfeiture, debt related to property taxes or judgment of at least $20 that is unpaid. Any debt for which the county or municipality has provided the debtor reasonable notice and the opportunity to be heard is also eligible.
The Department of Revenue may also enter into agreements with other states that provide for offsetting Wisconsin tax refunds against tax obligations of other states, and offsetting tax refunds of other states against Wisconsin tax obligations, in accordance with section 73.03(52m), Wis. Stats.
I hope this helps. Sorry :(