Offsets Have Resumed August 2021 Tax News

Earlier this year, in keeping with the Governor Gavin Newsom’s March 12, 2020 executive order and to provide relief to California taxpayers, FTB temporarily suspended certain collection activities through July 31, 2021,from the following programs: Interagency Intercept Collections (IIC), Treasury Offset Program (TOP) & Multistate Offset Program (MOP). FTB, however, continued to collect child support debt through the IIC Program during that time.

Also, last year at this time, FTB also temporarily suspended certain offset requests from the IIC and FTOP programs in light of the COVID 19 pandemic and then resumed the programs.

These three programs collect money from tax refunds or other government disbursements to satisfy taxpayer debts to us, other government agencies, and other partner states.

This year, most of the offset requests that had been suspended through July 31, 2021, include:

  • California income tax refunds to state and local agencies
  • Lottery prizes and unclaimed property
  • IRS refunds (including federal Economic Impact Payment checks)
  • Transfers of state income tax refund to or from a partner state

As of August 1, 2021, all three of these offset programs have resumed. Individuals and business entities that expected a refund and have other government debts may be impacted.

Visit Interagency Intercept Collections, Treasury Offset Programor & Multistate Offset Program on our website for more information on each program.