# Presentation: 370369

## Treasury Offset Program

**Horace Tate, Senior IT Specialist**** **
**Katrina Gonzalez, IT Specialist**
**Debt Program Support Branch**
**Debt Program Division**

## What is the Treasury Offset Program?

**What is the Treasury Offset Program?**

- 	_*Offset*_ is withholding funds payable by the United States to a person to satisfy a debt owed to the United States or to a state.

- TOP is a centralized offset process that intercepts Federal payments of payees who owe delinquent debts to agencies that have submitted debt information to FMS.

- 	_*Centralized offset*_ is the offset of payments disbursed by FMS and other Federal disbursing agencies through the TOP.

## TOP is one of the largest and most effective tools in collecting delinquent debts for Federal and state agencies:
Debts owed to the United States (tax & non-tax);
Child support obligations enforced by state agencies; and
State income tax debts.

Collections total over $3 billion per year.

- Debts owed to the United States (tax & non-tax);
- Child support obligations enforced by state agencies; and
- State income tax debts.
- Collections total over ***$3 billion*** per year.

**What is the Treasury Offset Program?**

## Centralized Salary Offset

**Participating Salary Paying Agencies:**
**  ****Interior**
**  ****National Finance Center**
**  ****DoD-DFAS**
**  ****U.S. Postal Service**
**  ****GSA**

## New NTDO Vendor Payments

**U.S. Army Corp of Engineers (USACE)**
**Implemented July 2007.**
**U.S. Postal Service (USPS)**
**Expected implementation         Spring 2008.**

**New NTDO Vendor Payments**

## 
CTX Payments
Implementation planned for December 2007.

Fedwire
For Fedwire payments that match debts in TOP, the agency will be required to use payment methods that go through the Treasury Offset Program, allowing offset/levy.

Implementation planned for December 2007.

**CTX Payments**
**Implementation planned for December 2007.**
**Fedwire**
**For Fedwire payments that match debts in TOP, the agency will be required to use payment methods that go through the Treasury Offset Program, allowing offset/levy.**
**Implementation planned for December 2007.**

**Additional Payment Methods**

##   Total - $257.5 billion! 

**As of October 10, 2007**
**TOP Database Contains:**

** ****$****36.9 ****billion in Federal Non-Tax Active Debts.**
** ****$****88.1**** billion in Child Support Active Debts.**
** ****$****126.4**** billion in Federal Tax Active Debts.**
** ****$****6.1**** billion in State Active Debts.**
**  ****Total - ****$****257.5**** billion! **

## CY Collections Through TOP 

**CY Collections Through TOP **
**As of October 3rd, 2007**

** ****Administrative Offsets ****	****$****157.9**** million**
** ****Tax Refund Offset **
**Child Support****	****	****$****1.6**** billion**
** ****Tax Refund Offset **
**Federal Non-Tax Debt****	****$****1.2**** billion**
** ****Tax Refund Offset **
**State Income Tax Debt****	****$****225.3**** million**
** ****Tax Levy****	****	****	****$****275.2**** million**

## State Reciprocal Program

- States refer debts to TOP for offset against Federal vendor payments and State payments will be matched against Federal debts.
- Interim rule on Administrative Offset Under Reciprocal Agreements with States was published January 4, 2007.
- Pilot began in June 2007 with Maryland &       New Jersey started in July.

## CMS Payments

**Working with CMS to determine the best option to levy Part A and B payments disbursed by CMS**
**	****Option 1 – Have Treasury disburse these payments**
**	****Option 2 – Have CMS use the NTDO process**
**CMS Part C and D payments are disbursed by Treasury and are available for levy**
**Medicare payments are not legally subject to administrative offset.**

## Legislative Proposals

**Unemployment Trust Fund to Participate in TOP.**
**Removal of 10 Year Statute of           Limitations on Offsets.**
**Allow the offset of federal income        tax refunds for delinquent state            tax for out-of-state residents. **
**Allow the offset of federal benefit        payments to collect delinquent          child support.**

##    Creditor Agency TOP Reports 

- Reports available on the TOP Client:
**Individual Inquiry by TIN**
**Individual Inquiry by Debt Number**
**Offset/Levy and Reversal Activity Report**
**IPAC Transaction Report**
**Debtor Locator Report**
- Additional Reports:
**Debt Extract**
**VA Weekly Offset Extract**

##    Payment Agency TOP Reports

- Reports available on the TOP Client:
**Individual Inquiry by TIN**
**Offset Activity Report**
- Additional Reports:
**Payment Extract File **

## Debt Program Division

**Debt Program Division **
**(202) 874-0540**
**Rosemary McCambridge,Branch Manager****	**
**Debt Program Relations Branch**
**(202) 874-6727**
**Alyssa W. Riedl, Branch Manager****	****	**
**Program Support Branch**
**(202) 874-6859**

**Debt Program Division**
***Points of Contact***

## Questions?