Overview of the Federal Offset Program

The Federal Offset Program assists States with the collection of delinquent child support debts by enforcing four remedies:

• Federal Income Tax Refund Offset
• Administrative Offset
• Passport Denial Program
• Multistate Financial institution Data Match (MSFIDM)

Federal Income Tax Refund Offset

Congress enacted the Federal Income Tax Refund Offset Program to recover delinquent child support debts. This remedy involves the interaction of all State child support agencies and three Federal agencies - the Office of Child Support Enforcement, the Financial Management Service, and the Internal Revenue Service.

Administrative Offset

The Debt Collection Improvement Act (DCIA) allows certain Federal payments (other than Federal tax refunds) to be offset. State participation in the administrative offset program is optional. A case may be submitted for administrative offset when the debt is at least $25 and is 30 days past due, although states have flexibility to determine a higher threshold. Both recurring and nonrecurring payments are eligible for administrative offset.

See the Executive Order 13019 "Supporting Families: Collecting Delinquent Child Support Obligations", September 28, 1996.

Policy and Technical Operations Information

• Action Transmittal 10-04 (AT-10-04)
  Policy information and citations to the law.
• Federal Offset Program User Guide
  Detailed information on procedures for submittal to the Federal Offset System, including timeframes, technical information and record specifications.
• PY 2013 Federal Offset Collections Schedule
  Important dates for collections processing for the 2013 processing year (PY).

Additional Related Resources

• Treasury Offset Program Call Center: 1-800-304-3107
• Internal Revenue Service
• Financial Management Services (FMS) Program Information