Skip Header and Navigation

Printer-friendly version of a Department of Revenue web page. Back to Full Screen Display

Wisconsin Department of Revenue

 Treasury Offset Program

  1. What is the Treasury Offset Program?
  2. What kinds of debts are eligible for collection under this program?
  3. How can I avoid having my federal income tax refund intercepted for payment of my state tax debt?
  4. How will I know if my federal tax refund was intercepted to pay a state debt?
  5. My spouse and I filed a joint federal tax return and our refund was intercepted for a debt that my spouse owes. How can I get my portion of the refund back?
  6. Why are you taking my federal tax refund if I am already making payments on my delinquent state taxes?
  7. What if I don't give you permission to take my federal tax refund?
  1. 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.

  2. What kinds of debts are eligible for collection under this program?

    Only state individual income tax debts can be collected through the Treasury Offset Program. Other types of delinquent taxes, and debts owed to other Wisconsin state agencies, counties, and municipalities, cannot be collected through TOP.

  3. How can I avoid having my federal income tax refund intercepted for payment of my state tax debt?

    Prior to submitting debts to the U.S. Department of Treasury for inclusion in TOP, the Department is required to notify each debtor, via certified mail, that it intends to refer the debt for federal tax refund offset. If you receive this notice, you have 60 days to do one of the following:

    1. Pay your debt in full. A payment coupon is attached to the top of each notice for your convenience.

    2. Provide proof of payment. If you believe that all or part of this debt has already been paid, you must send documentation to support your claim to the address or fax number shown on the notice.

    3. Provide bankruptcy information. The Department will not submit your debt to TOP if you are protected by bankruptcy provisions. You must notify the Department by sending evidence concerning your bankruptcy to the address shown on the notice. This evidence should include the case number, filing date, and the name of the court in which you filed your bankruptcy claim.

  4. How will I know if my federal tax refund was intercepted to pay a state debt?

    After a federal refund offset occurs, the Financial Management Service (FMS), the branch of the U.S. Department of Treasury that administers TOP, will notify you that the offset has occurred. FMS will provide information regarding the amount and date of the offset, the state to which the offset was paid, and a contact in the state that can handle your concerns or questions regarding the debt that resulted in the refund offset.

  5. My spouse and I filed a joint federal tax return and our refund was intercepted for a debt that my spouse owes. How can I get my portion of the refund back?

    You must complete federal Form 8379 to get your share of the refund. To obtain the form, call the IRS at 1-800-829-3676, or you can download the form from the IRS web site.

    If you have questions about the form, or need help completing it, call your local IRS office or call 1-800-829-1040. The completed Form 8379 should be mailed to the IRS center where you sent your original tax return.

  6. Why are you taking my federal tax refund if I am already making payments on my delinquent state taxes?

    There are no provisions in the state and federal laws governing the Treasury Offset Program that prevent the Department from taking your refund if you are participating in an installment agreement or otherwise making payments on your delinquent account. Once your unpaid liability becomes delinquent, the Department is authorized to pursue a number of involuntary collection actions, some of which may occur simultaneously.

  7. What if I don't give you permission to take my federal tax refund?

    Just as the Department is not required to secure your permission prior to taking other types of collection action, such as filing a delinquent tax warrant, assigning your account to a collection agency, or garnishing your wages, the Department is not required to secure your permission prior to submitting your unpaid liability to TOP.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Refund Interception Assistance
P.O. Box 8901
Madison, WI 53708-8901
Phone: (608) 266-7879
Fax: (608) 261-8978
E-Mail Additional Questions

Last updated December 12, 2007