Treasury Offset Program in Full Swing
On June 20, 2011, we will fully participate in the Federal Treasury Offset Program (FTOP), a debt collection program, where we intercept federal refunds for payment of past-due California income tax debts. In a limited study, we collected more than $22 million since September 2008. When fully implemented, we project the number of offsets to dramatically increase.
Before we intercept a federal refund for state income tax debts, we issue a notice to taxpayers by certified mail. The notice allows 60 days for the taxpayer to resolve their debt or expect to have their federal refund intercepted. Taxpayers already in payment plans with us will still be subject to a federal refund intercept until their debt is resolved.