The Department of Treasury's Bureau of the Fiscal Service (BFS) issues IRS tax refunds and Congress authorizes BFS to conduct the Treasury Offset Program (TOP). Through the TOP program, BFS may reduce your refund (overpayment) and offset it to pay:
- Past-due child and parent support;
- Federal agency non-tax debts;
- State income tax obligations; or
- Certain unemployment compensation debts owed to a state. (Generally, these are debts for (1) compensation paid due to fraud, or (2) contributions owing to a state fund that were not paid due to fraud).
You can contact the agency with which you have a debt to determine if your debt was submitted for a tax refund offset. You may call BFS's TOP call center at the number below for an agency address and phone number. If your debt was submitted for offset, BFS will reduce your refund as needed to pay off the debt and send it to the agency you owe. Any portion of your remaining refund after offset is issued in a check or direct deposited as originally requested on the return.
BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund. You should contact the agency shown on the notice if you believe you do not owe the debt or if you are disputing the amount taken from your refund. If you do not receive a notice:
- Contact the BFS TOP call center at 800-304-3107 or TDD 866-297-0517, Monday through Friday 7:30 a.m. to 5 p.m. CST.
- Contact the IRS only if your original refund amount shown on the BFS offset notice differs from the refund amount shown on your tax return.
Answers are correct to the best of my ability but do not constitute legal or tax advice.
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