What Is the Treasury Offset Program?

The Treasury Offset Program is a debt collection program administered by the Debt Management Services department of the Bureau of the Fiscal Service. Under this program, delinquent debts that are owed to states and federal agencies can be collected under various laws and statutes.

The Treasury Offset Program uses a reporting system through which federal and state agencies submit records of delinquent debt. The Bureau of the Fiscal Service then records the delinquent debtors and uses offsets, which means withholding payments such as tax refunds, to recover the money needed to satisfy the debts. Debt can not be collected through this program if the debtor has declared bankruptcy.