Treasury Refund Offset - FAQ
Why did you offset an additional $23.81 from my federal refund from the IRS?
The Treasury Offset Program (TOP), operated by the Department of the Treasury’s Bureau of the Fiscal Service, is a fully automated, centralized offset program that intercepts federal and state payments to collect delinquent debts owed to federal and state agencies. The Fiscal Service is authorized to charge states and creditor agencies a $23.81 fee for administrative costs associated with offsets taken. In turn, the Department of Revenue seeks reimbursement from you for this fee.
Why did I receive a certified letter about a federal offset?
We are required to send our “intent to offset notice” by certified mail if we are planning to take your federal income tax refund to pay a state income tax debt you owe.
Why did you take my federal payment when I paid my debt?
This can happen when the federal government sends us your payment before our records show your debt is paid. If your debt it overpaid, we will issue you a refund. Please note that it may take several weeks for you to receive your refund.
My spouse and I filed a joint federal income tax return, and my spouse owes debt for which I am not responsible. How can I stop my portion of our federal refund from being offset to pay my spouse’s debt?
You must apply for Injured Spouse Allocation through the Internal Revenue Service (IRS). For information on how to apply, see Injured Spouse Allocation on the IRS website.
Can my federal payments be offset if I have a payment agreement or if my wages are being levied?
Yes. We will file offset claims in addition to any other actions we are taking to collect your debt. If you have a payment agreement, please continue to make all scheduled payments.