Treasury Offset Refund Taken — What It Means & What To Do

Common Reasons for Refund Offset

Your refund may be taken for:

• Past-due child support

• Federal student loan default

• State tax debt

• Unemployment overpayments

• Other certified federal or state obligations

You should receive a notice explaining which agency received the funds.

This Is Not an IRS Levy

Treasury Offset is different from:

• CP504 intent to levy

• CP90 final levy notice

• Wage or bank account levies

• Federal tax liens

This process involves another agency using Treasury’s offset authority — not a direct IRS seizure action.

What You Can Do

Depending on your situation, you may:

• Contact the certifying agency directly

• Dispute the validity of the underlying debt

• File an injured spouse claim

• Request documentation from BFS

• Challenge the debt through the proper administrative channel

The proper next step depends on the type of debt and which agency certified it.

Included in This Documentation System

• Treasury Offset review checklist

• Dispute letter templates

• Injured spouse documentation structure

• Agency contact framework

• Procedural roadmap outlining next steps

• Record organization guidance