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Bureau of the Fiscal Service

Treasury Offset Program Expands to Include Unemployment Compensation Debts

January 31, 2011

FMS Media Relations

Washington, DC - With the President's signing of the Claims Resolution Act of 2010, the U.S. Department of the Treasury's Financial Management Service (FMS) is expanding the use of the Treasury Offset Program (TOP) to recover unemployment compensation debts owed to states.

The law authorizes FMS to offset federal tax refund payments to collect unemployment compensation debts due to failure to report earnings or delinquent contributions. Previously, only debts incurred as a result of fraud were eligible for collection by tax refund offset.

The new law also allows FMS to perform these offsets regardless of where the debtor currently resides or how long the debt has been outstanding.

"The additional authorities of this law assist FMS in protecting taxpayer funds through improved recovery of improper payments," said Dave Lebryk, FMS Commissioner. "The offset program has already helped states collect more than $25 billion of delinquent debt since 1997 including child support, state income tax and other state debts."

FMS is working with the Department of Labor to provide outreach to state governments for voluntary support of the TOP. To date, FMS has conducted four Webinars and hosted individual meetings with states to address questions on the program.

New York and Wisconsin, the first states to submit unemployment compensation debts to TOP, are scheduled to begin receiving collections in mid-February.

States interested in participating in the TOP can contact the Treasury Offset Division at 202-874-0540 for more information.

Last modified 07/16/19