The Bureau of the Fiscal Service uses the Treasury Offset Program to withhold federal tax refunds to pay past-due child support, federal agency debts, state income tax, and certain unemployment debts. The agency recovered more than $3.8 billion in delinquent debts during fiscal year 2024. A person receives a notice detailing the original refund amount, the offset amount, and the agency receiving the payment. The IRS does not receive these offset details, so a person must contact the Fiscal Service directly for questions about the reduction. A spouse who is not responsible for the debt may claim their portion of a joint refund using IRS Form 8379.
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