The Treasury Offset Program (TOP) collects past-due (delinquent) debts (for example, child support payments) that people owe to state and federal agencies. To the extent allowed by law, when a match happens, TOP withholds (offsets) money to pay the delinquent debt.

What is a consumer debt offset?

Offsets to Pay Certain Debts. Past due federal tax debt may reduce your tax refund. The BFS may also use part or all of your tax refund to pay certain other debts such as: Federal agency non-tax debts, such as a delinquent student loan. State income tax obligations.

Who is responsible for the Treasury Offset Program?

Treasury Offset Program & Debt Management Services. The Treasury Offset Program is a centralized offset program, administered by the Financial Management Service’s (FMS) Debt Management Services (DMS), to collect delinquent debts owed to federal agencies and states (including past-due child support), in accordance with 26 U.S.C.

How are tax refund offsets used to pay unpaid debts?

The Treasury Offset Program can use all or part of your federal refund to settle certain unpaid federal or state debts, to include unpaid individual shared responsibility payments. Here are five facts to know about tax refund offsets. Tax Refund Offsets Pay Unpaid Debts | Internal Revenue Service Skip to main content

Is the Fair Debt Collection Practices Act include bank offsets?

The Fair Debt Collection Practices Act is designed to protect consumers from unfair and abusive debt collection activity, but it does not include bank offsets. Affiliated Banks. Although a bank cannot take money out of your account to repay an unrelated creditor, they can offset if you owe money to an affiliated bank.

How do I get an offset on my federal payment?

If you have any questions concerning the offset of your federal payment, please call the number corresponding to the country from which you are calling.