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Multistate Offset Program

Multistate offsets are the transfer of your state income tax refund to a partner state. Partner states do this to pay income tax that you owe another state.

If the state that you owe does not receive full payment from a single offset, they may continue to offset future refunds to pay what you owe.

California Revenue and Taxation Code Section 19377.5 and Government Code Section 12419.13 allows us to offset refunds to pay income tax that you owe.

Prevent an offset

We want your refund from a partner state

Pay in full or resolve the balance due within 30 days of the date on FTB 4940 PC, Multistate Refund Offset Notice.

Use the coupon on your notice or go to Payment Options.

If we don’t receive full payment within 30 days, we can ask the other state to send us your refund.

If you think you do not owe the balance, contact us.

We want to send a partner state your refund

Contact the partner state and pay or resolve the debt. They can provide you balance information.

Offset notification

The state that offsets your refund sends you a notice that shows the offset date, amount, and contact information.

Fees assessed

Partner states do not assess any fees when they send us your refund.

Offset payments posting to your account

It takes at least 4 weeks for a payment sent to us to post to your account. The partner state may still send us additional refunds if their payments do not post to your account before we can stop them.

Overpayments

You may receive a refund if an offset results in an overpayment. The statute of limitations must be open and you cannot owe another debt.

Overpayment when we send your refund to a partner state

If you already paid the balance, and we sent your refund to them, they will refund the overpayment. Allow them a minimum of 4 weeks.

Overpayment when a partner state sends us your refund

You may receive a refund if a partner state sends us your refund and your debt is already paid. Allow us a minimum of 6 weeks to process. If you have questions, call us at 916.845.2867 or 800.735.2929 (TTY/TDD).

Partial overpayment refund

If we or the partner state only offset part of your refund, you will receive a check for the remaining amount.

Other information

Installment agreements

We continue to offset refunds even if you are in an installment agreement. Offsets continue until your debt is fully paid.

Partner state payment notification

We send partner states updated balance information each week that shows any refunds we receive and apply.

Contact information

Phone

  • 916.845.2867
  • 800.735.2929 (TTY/TDD - Assistance for persons with hearing or speech impairments)

Mail

Offset Program MS A416
Franchise Tax Board
PO Box 2966
Rancho Cordova CA 95741-2966

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