Multistate Offset Program Collections for other states

Overview

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.

Also, 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?

  1. An agency sends us information about a debt
  2. We collect the money from tax refunds
  3. The State Controller sends the partnering state the money
  4. 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.

California RTC 19291 & RTC 19377.5 and Government Code 12419.13 allow us to offset refunds to pay income tax that you owe.

Interested in partnering with us? Learn how we can start collecting money owed to you.

Offset letter

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 1102)

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:

  1. Redirect your money
  2. Pay the state tax agency you owe
  3. Send you a letter about it (Offset Notice)

Contact the State agency on your Offset Notice (we do not have account details).

Fees

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 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.

Partner state payment notification

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

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 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.

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.

Partial refund

If we or the partner state only offset part of your refund, you will receive the remaining amount by either:

Payment plans

We continue to offset refunds even if you are in a payment plan. Offsets continue until your debt is fully paid.

Contact us

For questions about an offset, call or send us a letter.

Phone
(916) 845-2867
Weekdays, 7:30 AM to 5 PM
Mail
Offset Program MS A416
Franchise Tax Board
PO Box 2966
Rancho Cordova, CA 95741-2966