Tax News
California’s Offset Program Expands

FTB Archive Disclaimer:  Archived content is not current and may contain broken links. It remains online for historical reference or research. The search function above allows you to search archived and current content separately. If you need archived content in a different format, contact us.

The California offset program expanded to allow reciprocal agreements for California to collect debts from out-of-state residents. The Delinquent Taxpayer Accountability Act added Revenue and Taxation Code Section 19377.5, granting us the authority to enter into reciprocal agreements with other states to offset refunds to pay personal income tax (PIT) debts owed to the partner state.

In May 2013, we sent out 11,000 Multistate Refund Offset Notices to PIT taxpayers with delinquent California income tax liabilities and a New York state address.

To avoid offset, the letters instructed the New York residents to do one of the following:

  • Pay their California balance in full.
  • Provide evidence that the debt is not past due or not legally enforceable.

The letters also stated that if they did not respond within 30 days, we would submit their balance due to the New York State Department of Taxation and Finance to offset eligible income tax refunds due to them.

These agreements will enhance our ability to collect from taxpayers who reside out of state. Currently, the only state that we partner with at this time is New York.

If one of your clients receives a Multistate Refund Offset Notice, the phone number to contact is 916.845.2867.

Back to July 2013 Tax News

Is there something wrong with this page?

Help us improve our website

Don't include social security numbers or other personal/confidential information.


You are leaving

We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. Review the site's security and confidentiality statements before using the site.

If you have any issues or technical problems, contact that site for assistance.

Ahora está saliendo de

Nosotros no controlamos el sitio web al que se destina y no podemos aceptar ninguna responsabilidad por su contenido, enlaces, u ofertas. Revise las declaraciones de seguridad y confidencialidad del sitio antes de usar el sitio. Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.

Si tiene algún problema en general o técnico, comuníquese con ese sitio para obtener asistencia.