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Offset of Federal Funds or Payments
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The Minnesota Department of Revenue may offset (take) your federal income tax refunds or federal payments and apply them to your income tax debts or debt referred to us from referring agencies. See Minnesota Statute 16D.18.
The U.S. Treasury Department may also take your state tax refunds or payments and apply them to debts you owe the federal government. See the federal law 26 U.S. Code 6402(e).
The Treasury Department manages several programs that use offsets to collect overdue state and federal debts. For more information, visit the Treasury Offset Program website.
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For us to offset your federal refund or payment:
- We send a Notice of Intent to Offset letter to your last known address, notifying you of our intent to file an offset claim with the U.S. Treasury Department.
- We file a claim with the Treasury Department 60 days after we send you the Notice of Intent to Offset letter.
- When the Treasury Department sends us all or part of your federal refund or payment, they will send you a Notice of Payment Offset letter. For more information, visit Offset Letters.
We are only allowed to take certain refunds or payments for different debt types.
| Debt type | We may take | We may not take |
|---|
| Individual Income Tax | - Tax refunds
- Expense reimbursements
- Travel advances
- Vendor or contractor payments
- Grants
| - ​Social Security income
- Veterans' benefits
- Railroad Retirement benefits
|
| Other | - Expense reimbursements
- Travel advances
- Vendor or contractor payments
- Grants
| - Social Security income
- Veterans' benefits
- Railroad Retirement benefits
- Tax refunds
|
