Treasury Offset Program (2023)

Contact Information

Debtors and Agencies with questions regarding the offset process may call the Customer Call Center at:

(785) 296-4500
Monday through Friday, 9:00 AM to 3:00 PM
(excluding observed State holidays)

The Customer Call Center will require your Tax Identification Number (Social Security Number or Federal Employer Identification Number) in order to reference your account.

The Kansas Treasury Offset Program (KTOP) does not have detailed information regarding debts and will only be able to provide callers with the contact name and phone number of the creditor agency to which their debt is owed, as well as the debt amount.Each creditor agency is responsible for maintaining their debt records within KTOP and for answering debtor questions concerning their debt.

To obtain more information about KTOP, please contact:


Kansas Treasury Offset Program
PO Box 2713
Topeka, KS 66601-2713

KTOP@ks.gov

(Video) TOP- Treasury Offset Program explained

(785) 296-1477 (fax)

Background

Kansas Treasury Offset Program (KTOP)

Governed byKansas Statutes Annotated (K.S.A.) 75-6216, the Kansas Treasury Offset Program (KTOP) launched in March 2015. K.S.A. 75-6216 allows the Secretary of Administration (or designee) to enter into a reciprocal agreement with the U.S. Department of the TreasuryBureau of the Fiscal Service (BFS).

The State of Kansas and BFS have entered into a reciprocal agreement between both parties. The State Reciprocal Program (SRP) is available only to state agencies and U.S. territories. The SRP agreement provides for the collection of delinquent state debt by offset of federal non-tax payments, as well as for the collection of delinquent federal non-tax debt by offset of state payments.

States participate in the SRP as both acreditor agencyand apayment agency. A creditor agency is an agency or state that requests BFS services in collecting the state's delinquent debt by inclusion in theTreasury Offset Program (TOP). States that submit their debts to TOP for collection are considered creditor agencies. TOP collects on debts by reducing federal payments and subsequently transferring collected amounts back to the creditor agency to which the debt is owed.

The State of Kansas, as acreditor agency, sends debts that are eligible for non-tax payment offset to BFS. BFS withholds all or part of federal non-tax payments and subsequently transfers collected amounts back to the creditor agency.

The State of Kansas, as apayment agency, is responsible for withholding state payments to satisfy federal non-tax debts.

Treasury Offset Program (TOP)

(Video) Treasury Offset Program

BFS carries out government-wide delinquent debt collection authorities under theDebt Collection Improvement Act of 1996 (DCIA), Public Law Number 104-134, as amended. Among other things, the DCIA directed federal disbursing officials to offset federal payments to collect delinquent debts the federal agencies certified to the Secretary of the Treasury as valid and legally enforceable debts. In order to implement this section of the DCIA and other debt collection authorities, BFS established theTreasury Offset Program (TOP).

TOP contains a database of delinquent debts, including non-tax debts owed to the United States. TOP matches information about those debts with information about federal payments that are about to be disbursed. If the name and Taxpayer Identification Number (TIN) on a payment matches with the name and TIN on a debt, that payment will be offset in whole or in part to collect the delinquent debt.

For additional information regarding TOP, click on the following link:

TOP Frequently Asked Questions

Requirements

Federal Payment Offset Requirements

Federal payment offset shall be conducted in accordance with the provisions of31 Code of Federal Regulations (CFR) Part 285.6. Before submitting a debt for federal payment offset, a state must comply with all of the due process requirements of31 CFR Part 285.

For a debt to be sent to TOP, the minimum dollar amount of the debt must be equal to or greater than $25 and the delinquency date must be within the prior 10 years unless there has been a judgment allowing for collection beyond the normal 10 years.

BFS will send offset notices to the debtor at the time the federal payment is reduced for an offset. The notices will contain contact information provided by the state.

(Video) Clear Nation Recovery | How Does the Treasury Offset Program Work?

State Payment Offset Requirements

The offset of state payments to collect delinquent federal non-tax debts shall be conducted in accordance with 31 CFR Part 285.6 and K.S.A. 75-6216. Before submitting a debt to TOP, federal creditor agencies shall provide the due process requirements set forth in 31 CFR Part 285, which apply to the offset of all payments in TOP.

For a debt to be sent to TOP, the minimum dollar amount of the debt must be equal to or greater than $25 and the delinquency date must be within the prior 10 years unless there has been a judgment allowing for collection beyond the normal 10 years.

KTOP will send a notice to the debtor at the time of the offset. The notice will contain contact information for the federal agency owed and the state agency whose payment was offset. The state agency whose payment is offset will receive an email from KTOP notifying them of the voucher and amount of the offset.

Certifying Debts

Pursuant to31 United States Code (U.S.C.) 3716(a), the head of each creditor agency (or designee) must certify each debt it submits to TOP through KTOP. Specifically, creditor agencies must certify to KTOP that the debt is past due, legally enforceable, and that the debtor was provided with a notice and an opportunity for a review in accordance with the provisions of 31 U.S.C. 3716(a) and other applicable laws. In addition, creditor agencies must certify that no debt submitted is more than 10 years delinquent, unless those debts may be legally offset if more than 10 years delinquent.

To download the delinquent debt submission form, click on the following link:DA-56

Due Diligence / Due Process Requirements

(Video) Social Security and Treasury Offset Program...

Creditor agencies must provide debtors with due process prior to referring debts for offset. Regulations detailing due process requirements are at 31 CFR Parts 285 and901. Creditor agencies must also review regulations and laws authorizing or affecting their particular debts to determine if they contain additional due process requirements.

At least 60 days before submitting a debt to TOP, the creditor agency is required to provide written notification to the debtor of the agency's intention to collect the debt through administrative offset of federal payments. Due diligence may include the following:

  1. Inspect and copy creditor agency records related to the debt;

  2. Request a review of the determination that they owe the debt; and

  3. Enter into an acceptable written repayment agreement with the creditor agency (see 31 U.S.C. 3716(a)).

For additional information regarding KTOP, click on the following link:

KTOP Frequently Asked Questions

How to Start Using KTOP

So that creditor agencies do not have to enter their debts into both the Kansas Debt Recovery System (KDRS) and KTOP, KDRS is programmed to sync debts with KTOP. Creditor agencies that would like for the Department of Administration to perform the initial transfer of their existing KDRS debts to KTOP should complete aDelinquency Date Agreementform and return it by one of the following methods:

Email:KTOP@ks.gov
Fax: KTOP (785) 296-2697

Agencies currently using KDRS:

Complete the additional fields required for TOP submission for each debt entered into KDRS. For more information, please refer to the KDRS User Manual and/or the DA-56 instructions.

(Video) TAX OFFSET?!? Should I Wait to File?

Agencies currentlyNOTusing KDRS:

  1. Contact KTOP (see Contact Information above) and provide the following:
    • Agency Name
    • Agency Address
    • Contact Name
    • Phone Number
    • Email Address

    Each creditor agency must have at least one user that will have access to KTOP. Provide the contact name, phone number, and email address of each individual that should be established as a KTOP user for the agency.


  2. The agency will be set up in KTOP with a unique Creditor Agency Number.

  3. The designated user(s) will be contacted by KTOP and emailed instructions on how to access the system. Each user will be able to:
    • access the KTOP User Manuals in pdf format
    • access their creditor agency's debtor records
    • input new debts
    • certify debts
    • post adjustments to existing debt records
    • perform various searches

  4. Start submitting debts via manual entry in KTOP or pasting entry utilizing the DA-56 spreadsheet.

FAQs

How long does it take for an offset to be removed? ›

Non-joint refund: Federal law requires a state to disburse a non-joint refund offset no later than 30 calendar days after receipt unless there is a special circumstance (for example, a pending appeal).

Will there be an offset in 2022? ›

‍The Treasury Offset Program isn't suspended, but the IRS will wait until November 2022, before it offsets tax refunds for student loan debt owed to the Department of Education. If your money is taken for unpaid taxes, child-support, etc., you can try to get it back by requesting a tax refund offset reversal.

What function does the Treasury Offset Program Top perform? ›

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.

What does offset amount mean? ›

Your tax return may show you're due a refund from the IRS. However, if you owe a federal tax debt from a prior tax year, or a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt.

How do I stop Treasury Offset? ›

You must pay your benefit overpayment in full within 60 days of the date on the Notice of Intent to Offset Your Federal Income Tax Return (DE 957) to avoid having your refund offset (reduced or withheld).

Does IRS offset delay refund? ›

Unpaid Debts or Taxes

Outstanding debts can come back to haunt you, delaying your tax refund. The Bureau of the Fiscal Service (BFS) will reduce or withhold your tax refund if you owe certain types of debt. This is called a tax offset and it can apply to: Past-due child support.

Will my tax refund be garnished 2022? ›

But thanks to the latest student loan relief rules, your tax refund won't be taken in 2022 for past due student loan payments. Federal student loan payments and loans in collections are still on administrative pause.

How do you find out if my refund will be offset? ›

Not all debts are subject to a tax refund offset. To determine whether an offset will occur on a debt owed (other than federal tax), contact BFS's TOP call center at 800-304-3107 (800-877-8339 for TTY/TDD help).

How much is the tax offset 2022? ›

As announced in the 2022–23 federal Budget, the LMITO has been increased by $420 (referred to as the one-off $420 cost of living tax offset) for the 2021–22 income year. This increases the base amount to $675 and the full amount to $1,500.

How do I find out why my tax refund was reduced? ›

Typically the IRS will mail you out a notice if your tax refund is different from the amount you claimed on your tax return. The notice will include information on the refund you were eligible for, the amount your tax refund was reduced by, what agency the money was sent to, and contact information for that agency.

How accurate is the Treasury Offset Hotline? ›

But, a word of caution, the offset hotline isn't always 100% accurate - sometimes it won't reflect recent additions and an offset can be placed in the time between your filing of the return and when your refund is paid out.

How can I stop the IRS from taking my refund for child support? ›

There are several ways to stop the state and federal governments from taking your tax refunds including contacting your local Department of Child Support and Enforcement (DCSE) agency to file an appeal, setting up a payment plan for your delinquent payments, and requesting a hearing.

What does Treasury offset mean? ›

The Treasury Offset Program (TOP) collects past-due (delinquent) debts (for example, child support payments) that people owe to state and federal agencies. TOP matches people and businesses who owe delinquent debts with money that federal agencies are paying (for example, a tax refund).

How much should I put on my offset? ›

Ideally, the more money you can put into your offset account and consistently keep it in there, the better. In most cases, it's recommended to have at least $10,000 in your offset account to break even after the extra expenses of an offset account which includes 'package fee' or 'offset account' fees.

How is offset determined? ›

Offset is simply the distance from the hub mounting surface to the center of the wheel. In other words, Offset = Measured Backspace – Calculated Wheel Center Distance.

Can an offset be stopped? ›

You may be able to avoid offset by entering repayment during the 65-day period. Once the 65-day period ends, you still may be able to stop offset by entering into a rehabilitation agreement and making the first five of the nine required payments.

What does it mean if my refund was offset? ›

A refund offset is when an IRS refund is reduced or intercepted to pay off delinquent debt, such as past-due child support, outstanding student loans, or unpaid state income tax. You'll get an explanatory letter from the Bureau of the Fiscal Service if your refund is offset.

Can tax refunds be seized to offset student loans? ›

Your student loan holder will be able to seize your refund — and your future refunds — until the tax offset stops. You can get federal student loans back in good standing through rehabilitation and consolidation, which will also stop other consequences of default like wage garnishment.

How do I get my tax refund back after offset? ›

You must contact the specific federal agency or state you owe the money to. TOP cannot make arrangements for you to pay off your debt, discuss your debt with you or refund your money. The TOP Interactive Voice Response (IVR) system on 800-304-3107 can tell you who to call.

Why did the IRS reduce my refund 2022? ›

All or part of your refund may have been used (offset) to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans.

Who can offset your federal tax return? ›

If you're expecting a tax refund but have concerns about creditors garnishing it, you may be worrying too much. Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt.

Does the IRS notify you of an offset? ›

The Bureau of Fiscal Services will send you a notice if there's a refund offset. The offset notice will show: Original refund amount. Your refund offset amount.

How do I talk to a live person at Treasury Offset Program? ›

If you need information about whom to contact, call the Treasury Offset Program IVR toll-free at 800-304-3107.

What month will I get my 2022 refund? ›

The Middle Class Tax Refund (MCTR) is a one-time payment to provide relief to Californians. If you are eligible, you will automatically receive a payment. Payments are expected to be issued between October 2022 and January 2023.

Is the tax offset automatically applied? ›

From 1 July 2018 to 30 June 2022 taxpayers may be eligible for both LITO and LMITO. Your eligibility for both is automatically determined and applied by the ATO when they assess your income tax return, so there's no need to do anything.

How does a tax offset work? ›

A tax offset (also known as a tax rebate) works by reducing the amount of tax an eligible taxpayer owes at the end of a financial year.

What is an example of a tax offset? ›

For example, with the Low and Middle Income Tax Offset (LMITO) for 2021-22, if your taxable income is $37,0000 or less, you will receive a $675 offset on your tax payable when you lodge your tax return. If your income is $48,001 to $90,000, however, the offset is worth $1,500.

What is the average time for 2022 tax refund? ›

They will provide an actual refund date as soon as the IRS processes your tax return and approves your refund. Most refunds will be issued in less than 21 days. You can start checking the status of your refund within 24 hours after you have e-filed your return.

What time of day does IRS deposit refunds 2022? ›

Most Americans who are expecting an income tax refund receive it by direct deposit in as little as 2 weeks after filing electronically. Will the 2022 tax filing season be normal?
...
2022 IRS Tax Refund Dates: When to Expect Your Refund.
IRS Accepts Return By:Direct Deposit Sent (Or Paper Check Mailed one week later)
May 16May 27 (June 4)
May 23June 4 (June 11)
6 more rows
8 Jan 2022

How do I find out who intercepted my tax refund? ›

To find out if you had a FMS offset that affected your tax refund you can call 1-800-304-3107.

How often is tax offset updated? ›

Pay the debt in full

For any changes to your balance for payments you make to us, we send updated account information to BFS weekly. Allow a minimum of 2 weeks for an offset to show on your account.

How long does it take IRS to send offset to child support? ›

The notice will advise the non-custodial parent to contact the local child support agency for further information. It normally takes three to five weeks from the time of the offset until the money is sent to the state that submitted the case for offset.

Will the IRS take my refund for child support 2022? ›

However, the IRS states that the full amount of your tax refund, including any Recovery Rebate Credit, may be intercepted to pay past due child support. For more information on the Recovery Rebate Credit, please visit the IRS' website.

Does the IRS always take your refund for child support? ›

If your state child support enforcement office has reported your overdue child support to the Treasury Department, the IRS will take your tax refund to cover the arrears (often called a tax refund seizure).

What does 100% offset mean? ›

A full offset account, sometimes called a 100% offset, allows you to use the interest you accrue on your funds to reduce the interest you pay each month on your loan. This means that every dollar in your offset account will be used against the balance of your home loan.

Should I put all my money into my offset? ›

yes, it's better to keep your savings in the offset account (or a redraw facility, which is a similar concept). Money in an offset account serves to reduce the principle component of your home loan, meaning you'll save big on interest and will pay off your loan faster.

What happens if offset account is more than loan? ›

You do not earn interest on the balance in your Everyday Offset account, even if it exceeds the balance of the home loan. Every cent in an Everyday Offset account will offset the balance of the home loan, saving you interest. No set up or monthly account keeping fees.

How can I make my Offset more positive? ›

Yes it's possible. If you want to increase the number of positive offset (ex. from +30 to +35), the back of each alloy wheel has to be machined down evenly using a special CNC machine. Note that not all offset changes can be achieved.

How are offsets measured and recorded? ›

Offset Method

Set up two control points on site, through the middle of the area to be recorded ensuring a clear line of sight between them. Lay a tape measure between the two points, ensure that the tape is at the correct tension. Ensure each point is securely fixed, as it will be pulled on by the tape measure.

What are the types of Offset? ›

The distance measured right or left of the chain line to locate details like boundaries, culverts, etc. are called offsets. Offset which can be judged by the naked eye or offset less than 15 m is called short offset and offset greater than 15 m is called long offset.

Can an offset be reversed? ›

If you have concerns about an offset, you can call TOP.

TOP can only give you the contact information for the federal or state agency attempting to collect the debt. If your tax refund is offset, you should not call the IRS since they cannot reverse an offset or give you information about the debt.

What happens when you withdraw offset account? ›

Like a regular transaction or savings account, your money is still accessible in the offset account. But if you make a withdrawal, you'll have less money working to lower the interest charged on your home loan.

Do offsets show on transcript? ›

After a certain notice period (120 days) these past due debts can legally be offset or garnished against your IRS tax refund payment. These debts can also be offset against social security benefits in some cases. On your tax transcript you will see the amounts reflected against this transaction code (TC) 898.

How do I get offset bypass refund? ›

In order to request an offset bypass refund, the taxpayer, or representative, should make the request when the return is filed. The request must occur prior to assessment. The request needs to demonstrate the financial hardship the taxpayer faces. The amount of the offset limits the amount of the OBR.

Are tax refund offsets suspended? ›

Due to the widespread health and economic issues resulting from the COVID pandemic, FTB has temporarily suspended IIC, FTOP and MOP operations until July 31, 2021, or a date to be determined based on the evolving nature of this unprecedented event.

Can I use the money in my offset account? ›

An offset account is a transaction account linked to your home loan. You can make deposits or withdraw from it as you would with a regular transaction account. The big difference is that when you hold money in an offset account over a period of time, you can reduce the amount of interest charged on your home loan.

What are the disadvantages of an offset account? ›

Offset accounts are typically more expensive to own than most types of loans. The interest rate is usually higher, and there are also bank fees and charges that come with your account.

How do you check if refund will be offset? ›

The IRS provides a toll-free number, (800) 304-3107, to call for information about tax offsets. You can call this number, go through the automated prompts, and see if you have any offsets pending on your social security number.

How do I know if Im in the Treasury Offset Program? ›

Contact your state or local child-support enforcement office to find out whether the Treasury Offset Program can reduce your ex-spouse's federal payments for the overdue child support your ex-spouse owes. For more information, you can also contact the federal Office of Child-Support Enforcement at 202-401-9373.

Does the offset matter? ›

Proper offset assures your new package has enough clearance so nothing rubs against the suspension, brakes or vehicle body (like fenders, bumpers and mud flaps). It's also important for driving safety, since the wrong offset can reduce vehicle stability or interfere with braking.

Why did the IRS offset my refund? ›

The amount of my federal payment (e.g., income tax refund) has been reduced ("offset"). Why? If an individual owes money to the federal government because of a delinquent debt, the Treasury Department can offset that individual's federal payment or withhold the entire amount to satisfy the debt.

What is the IRS offset program? ›

The Treasury Offset Program is a centralized offset program, administered by the U.S. Treasury Financial Management Service's Debt Management Services, to collect delinquent debts owed to Federal and state government agencies, in accordance with 26 U.S.C. § 6402(d), 31 U.S.C. § 3720A, and other applicable laws.

How is offset taken and recorded? ›

Offset Method

Set up two control points on site, through the middle of the area to be recorded ensuring a clear line of sight between them. Lay a tape measure between the two points, ensure that the tape is at the correct tension. Ensure each point is securely fixed, as it will be pulled on by the tape measure.

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