Can offset be avoided?
Yes. You must pay the balance of all tax liabilities listed in the notice, including ongoing interest, within the 60-day time frame provided in FTB 1102PC, Intent to Offset Federal Payments. If the debt is not resolved within 60 days, we will send our request to FMS to offset any federal income tax refund you may be entitled to receive.
A Taxpayer’s wishing to avoid offset must resolve their debt within the 60 day time frame provided in the Notice of Intent to Offset letter. It is difficult to stop offset after this time has expired. Offset action cannot be stopped once notice is received from Financial Management Services. In the event the liability has been resolved and this notice is still received, no action can be taken to effect the federal refund until it updates to your account. It is currently taking approximately 4 weeks from the date of the FMS letter to update. Q I have been notified by the Tax Commission that my IRS tax refund will be offset so I will not receive my full federal refund. I believe that I have paid off the debt and need to resolve this issue. Whom do I contact? A If you believe a tax liability has been satisfied or is different from the amount stated in your certified “Notice of Intent to Offset” letter, you may request a review of your state income tax account in writing.
