The Treasury Offset Program (TOP) collects debts owed to federal agencies and states. If you owe a debt that is past due to a government agency, your federal payments could be offset (reduced or withheld) to pay for it. The Employment Development Department (EDD) is required by federal law to take part in the program and can collect Unemployment Insurance (UI) benefit fraud overpayments from federal income tax refunds.
Before referring your debt to the TOP, the Benefit Overpayment Collection Section will send you theNotice of Intent to Offset Your Federal Income Tax Refund(DE 957). You will have 60 days to pay the benefit overpayment in full or prove the overpayment is not owed.
The Department of the Treasury will notify you by mail when a federal offset occurs. The letter includes the amount and date of the offset, and EDD contact information.
If you have questions about the offset, you can contact the Benefit Overpayment Collection Section at 1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m., Pacific time, except onstate holidays.
For more information about the TOP, visitBureau of Fiscal Service, Treasury Offset Program.
