How does the Treasury Offset Program work?
null How does the Treasury Offset Program work?
- If you owe a delinquent debt to a Government agency or a state and that agency identifies it is eligible for offset, you are sent a Notice of Intent to Offset letter.
- After the notice is sent, you have 60 days to: repay the debt, agree to a repayment plan, request a review or notify the agency of bankruptcy.
- After 60 days if the debt is still delinquent, the agency sends information about your debt to the TOP database.
- Before you receive a federal payment such as a tax refund, the database is searched to see if you owe a delinquent debt.
- If your debt is in the database, your federal payment will be reduced or withheld to pay your debt.
- When your payment is taken, a letter will be sent to you regarding the action.