What is the Treasury Offset Program?
Wisconsin statutes and the Internal Revenue Service Restructuring and Reform Act of 1998 authorize the Wisconsin Department of Revenue to enter into agreements with the Internal Revenue Service (IRS) to intercept, or offset, federal tax refunds for state tax obligations. The Treasury Offset Program (TOP) is a centralized offset program administered by a branch of the U.S. Department of Treasury to collect the tax obligations submitted by participating states through federal refund offset.
If you have unpaid child support, certain unpaid federal obligations or unpaid state income tax, you may be subject to the Treasury Offset Program. Below I have included information from the IRS on what this program is and what it could mean to you. The Department of Treasury’s Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay any past-due child support, Federal agency non-tax debts, or state income tax obligations. You can contact the agency with which you have a debt, to determine if your debt was submitted for a tax refund offset. If your debt was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt and send it to the agency you owe. Any portion of your refund remaining after offset will be issued in a check to you or direct deposited for you.
The Treasury Offset Program (TOP), is a final method in collecting delinquent food stamp debts. Examples of federal payments which can be intercepted to pay a delinquent debt include federal income tax refunds, social security benefits and federal pensions and salaries. • How do I stop a Treasury Offset Program intercept? The best way to avoid referral to the Treasury Offset Program is to make a written repayment agreement and making these payments each and every month by the agreed due date. • What do I do if I don’t think I should have an overpayment? At the time you are notified of your overpayment, the notice will give you information on what to do if you do not agree with the decision on your notice. The notice will tell you how much time you have to contact the local OKDHS office to request a hearing on the decision.
