Multistate Offset Program Collections for other states
Multistate offsets are the transfer of your state income tax refund to a partner state. Partner states offset the transferred funds to pay income tax that you owe to the partner state. Upon our request, partner states that owe you a refund will transfer funds to us to pay income tax that you owe.
How does this happen?
- An agency sends us information about a debt
- We collect the money from tax refunds
- The State Controller sends the partnering state the money
- The partnering state applies the money to that debt
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.
Interested in partnering with us? Learn how we can start collecting money owed to you.
The state that offsets your refund sends you a notice that shows the:
- Offset date
- Amount owed
- Contact information
Prevent an offset
Pay in full or resolve the balance due within 30 days of the date on Multistate Refund Offset Notice (FTB 4940 PC).
- To pay, use the coupon on your notice or visit 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.
For balances owed to another state
Contact the partner state and pay or resolve your debt. They can provide you balance information.
If you received an Intent to Offset Notice (FTB 4940)
Did you have your money taken? If you owe money to another state tax agency and that agency partners with us to collect it, we will:
- Redirect your money
- Pay the state tax agency you owe
- Send you a letter about it (Offset Notice)
Contact the State agency on your Offset Notice (we do not have account details).
Partner states do not assess any fees when they send us your refund.
Partner state payment notification
We send partner states updated balance information each week that shows any refunds we receive and apply.
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 continue to send us additional refunds if their payments do not post to your account in time for us to notify them to stop withholding funds.
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 that is subject to offset.
When we send your refund to a partner state
If you already paid the balance, and we sent your refund to a partner state, they will refund the overpayment. Allow them a minimum of 4 weeks to process.
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 we or the partner state only offset part of your refund, you will receive the remaining amount by either:
- Direct deposit
We continue to offset refunds even if you are in a payment plan. Offsets continue until your debt is fully paid.
For questions about an offset, call or send us a letter.
- (916) 845-2867
Weekdays, 7:30 AM to 5 PM
- Offset Program MS A140
Franchise Tax Board
PO Box 2966
Rancho Cordova, CA 95741-2966