ABSTRACT

Overview of the Treasury Department's Federal Payment Levy and Treasury Offset Programs [Updated April 22, 2022]   [open pdf - 731KB]

From the Document: "The U.S. Department of the Treasury, through the Bureau of Fiscal Service (BFS), has two programs for collecting delinquent debt owed by individuals, businesses, and other entities to federal and state government agencies. They differ mainly by the type of debt each program collects. The Federal Payment Levy Program (FPLP) collects delinquent 'federal tax debt' only. In this case, the BFS collaborates with the Internal Revenue Service (IRS) to collect this debt by placing a continuous levy on eligible federal payments to delinquent taxpayers. The Treasury Offset Program (TOP) collects a 'variety of state tax and nontax debt and federal nontax debt'. In this case, the BFS collaborates with federal and state government agencies to collect delinquent debt (including past-due child support) by offsetting certain federal payments to delinquent individuals. Federal nontax debt consists of direct loans, defaulted guaranteed loans, administrative debt (e.g., salary and benefit overpayments), and unpaid fines and penalties."

Report Number:
CRS In Focus, IF11671
Author:
Publisher:
Date:
2022-04-22
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
Help with citations