(rev. April 21, 2017)

What is TOP?

TOP is a centralized offset program

and one of the key tools used by 

Fiscal Service for collecting 

delinquent debts owed to federal 

agencies and states. TOP matches a 

database of delinquent debts against 

payments Fiscal Service and other 

agencies disburse, and then offsets 

(withholds or reduces) payments to 

recipients who owe delinquent debts.

How does TOP 

work?

Fiscal Service disburses federal 

payments for agencies (known as 

"payment agencies"), such as the 

Internal Revenue Service. "Creditor 

agencies," such as the Department 

of Education, submit delinquent 

debts to the Fiscal Service for 

collection and inclusion in TOP, and 

certify that such debts qualify for 

collection by offset. Fiscal Service 

also works with other federal and 

state agencies disbursing payments.

Before an eligible payment is 

disbursed, Fiscal Service compares

the payment information with debt 

information in the TOP database. If 

the payee's Tax Identification 

Number (TIN) and name match the 

TIN and name associated with a 

debt, Fiscal Service offsets the 

payment, in whole or in part, to 

satisfy the debt to the extent legally 

allowed, and sends amounts 

collected to the appropriate creditor 

agency.

Fiscal Service maintains information 

about debts in the TOP database 

and continues to offset eligible 

payments until the creditor agencies

suspend or terminate debt collection 

or offset activity for the debts.

What kinds of 

payments can be 

offset?

Depending upon the type of debt, the 

following payments may be eligible for 

offset:

 federal and state tax refunds

 federal wages, including military 

pay

 retirement, including military 

retirement pay

 federal and state vendor payments

 travel advances and 

reimbursements

 certain federal benefit payments, 

including Social Security benefits 

(other than Supplemental Security 

Income), Railroad Retirement 

benefits (other than tier 2), and 

Black Lung (part B benefits)

 other federal payments that are not 

exempt by law or by action of the 

Secretary of the Treasury.

Federal law limits the amount that 

may be withheld from some types of 

payments.

What services does 

TOP provide to 

states?

Child Support Program

States submit delinquent child support 

obligations to the U.S. Department of 

Health and Human Services, Office of 

Child Support Enforcement, which in 

turn submits the debts to TOP for 

collection through the offset of federal 

tax refund and other eligible federal 

payments.

FACT SHEET

Treasury Offset Program (TOP)

Supplemental Nutrition Assistance 

Program (SNAP)

States submit delinquent nutrition 

assistance obligations to the U.S. 

Department of Agriculture, Food and 

Nutrition Service, which in turn submits the 

debts to TOP for collection through the 

offset of federal tax refunds and other 

eligible payments.

State Income Tax Program (SIT)

TOP offsets federal tax refund payments 

to payees who owe delinquent state 

income tax obligations.

State Reciprocal Program (SRP)

TOP offsets federal vendor and other nontax payments to payees who owe 

delinquent debts to state agencies. In 

return, states offset payments to payees 

who owe delinquent nontax debts to 

federal agencies.

Unemployment Insurance Program

In partnership with the U.S. Department of 

Labor, TOP offsets federal tax refund 

payments to: 1) payees who owe 

delinquent unemployment insurance (UI) 

benefit debts due to fraud or a person’s 

failure to report earnings; and, 2) payees 

who owe UI employer tax debts.

https://www.fiscal.treasury.gov/top

ABOUT FISCAL SERVICE 

AND DEBT MANAGEMENT 

SERVICES

The U.S. Department of the Treasury’s 

Bureau of the Fiscal Service assists federal 

agencies with the prevention, collection and 

resolution of debts owed to government 

agencies. Additionally, we provide debt 

collection services to the states. Debt 

Management Services (DMS) is the business 

area responsible for administering programs 

and services related to improper payments, 

receivables management and delinquent debt 

collection.