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Offset of Federal Funds or Payments
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The Minnesota Department of Revenue may offset (take) your income tax refunds or federal payments and apply them to pay income tax debts or debt referred to us from other Minnesota agencies. See Minnesota Statute 16D.18.
The U.S. Treasury Department may also take your state tax refunds or payments and use them to pay debts you owe the federal government. See the federal law 26 U.S. Code 6402(e).
Note: The Treasury Department manages several programs that use offsets to collect overdue state and federal debts. For more information, see the Treasury Offset Program website.
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We send a letter to your last known address notifying you of our intent to file an offset claim.
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After 60 days, we file a claim with the Treasury Department.
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The Treasury Department notifies you when they send us all or part of your federal refund or payment. See Offset Letters. We will not take federal payments if you are in bankruptcy.
We are only allowed to take certain refunds or payments for different debt types.
Debt type |
We may take |
We may not take |
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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
|