The Minnesota Department of Revenue uses the Treasury Offset Program (TOP) to claim (“offset”) payments to pay delinquent debt.
The State of Minnesota participates in two TOP programs:
Treasury Refund Offset (TRO)
The Federal Offset Program allows the department to offset federal tax refunds, and apply them to outstanding income tax debt.
State Reciprocal Program (SRP)
The State Reciprocal Program allows states to enter into reciprocal agreements with the federal treasury. The agreements assist in collecting unpaid state debt by offsetting federal non-tax payments. Equivalently, the federal government is able to collect delinquent federal non-tax debt by offsetting state payments.
The following debts and payments apply to the State Reciprocal Program:
|Debts to be collected
State debts (including tax) other than:
- Child support
- Debts owed by other governments - State, local, foreign, etc.
|Non-tax debts owed to the United States|
|Payments to be offset
All federal payments except:
- Payments exempt under Federal Statute, 31 CFR 285.5
- Federal benefit payments
- Tax refunds
- Other payments specified in the reciprocal agreement
|All State payments, as authorized by applicable State laws and the reciprocal agreement.|