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Treasury Offset Program

If you have a past-due, legally enforceable California income tax debt and are entitled to a federal income tax refund, Franchise Tax Board (FTB) is authorized to offset that refund and apply it toward your balance due. This may result in an additional offset fee. Financial Management Service (FMS), a bureau of the U.S. Department of Treasury, administers this Treasury Offset Program.

We will send FTB 1102PC, Intent to Offset Federal Payments, by certified mail to your last known address. The letter explains that we plan to notify FMS of the debt if you do not pay in full within 60 days.

FMS will send you a notification explaining why your federal refund was reduced, and that it may take several weeks before the federal refund reaches FTB. They will also send any remaining federal refund amount to you.

To avoid the offset, you must take one of the actions below within 60 days from the date of the certified letter:

Pay the debt in full

Pay the full amount listed on FTB 1102PC, Intent to Offset Federal Payments. Use the payment coupon included in the letter when you send your check or money order. You may also pay online.

Request a review

If you believe that all or part of the debt is not past due or not legally enforceable, you must send evidence to support your position. Send your evidence to:

STATE OF CALIFORNIA
OFFSET PROGRAM MS A141
FRANCHISE TAX BOARD
PO BOX 2966
RANCHO CORDOVA CA 95741-2966

Bankruptcy

If you filed for bankruptcy, contact us one of the following ways:

  • Call us immediately at 916.845.4750.
  • Fax a copy of your bankruptcy petition with the notice to us at 916.845.9799.
  • Write to us at:

    STATE OF CALIFORNIA
    OFFSET PROGRAM MS A141
    FRANCHISE TAX BOARD
    PO BOX 2966
    RANCHO CORDOVA CA 95741-2966

Provide us with your bankruptcy case number and the name of the bankruptcy court. Although you are not subject to offset of your federal income tax refund while the bankruptcy “automatic stay” is in effect, you still are obligated to file tax returns.

Native Americans

If you are an enrolled member of an Indian tribe, and you believe your income is not taxable, you must send a letter explaining why. Send your explanation to:

STATE OF CALIFORNIA
OFFSET PROGRAM MS A141
FRANCHISE TAX BOARD
PO BOX 2966
RANCHO CORDOVA CA 95741-2966

Treasury Offset Program FAQs