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State of California Franchise Tax Board

Taxpayers Assessed Federal Treasury Offset Program Fee

Purpose of bulletin

To inform staff starting March 15, 2010, we will impose a $21 Federal Treasury Offset Program (FTOP) fee on personal and corporation income taxpayers. The fee is imposed on every successful offset.


Enacted July 28, 2009, California SBX4 16 gave us the legal authority to impose this fee. (Government Code §16583.1)

Legal authorities allowing states to participate include Title 26, United States Code, Section 6402(e); and Title 31, Code of Federal Regulation, Section 285.8. The federal regulation provides authority for the federal government to charge a fee to reimburse their costs. This fee was previously paid out of our budget. The regulation governing the offset of tax refund payments to collect state income tax debt may be found at the Financial Management Service.

Additional information

FTOP staff will impose and cancel the fee.

Notices with tax year debts have been updated to show this new fee.

Collection notice language also advises taxpayers we may impose this fee. The fee occurs for every offset; therefore, a debt may have more than one fee.

Taxpayer inquiries

Taxpayers can go to, and search for Offset, or call us at 916.845.2867, Monday through Friday, 8 am to 5 pm.

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