Treasury Refund Offsets

About Treasury Refund Offsets

Under federal law, the Louisiana Department of Revenue can garnish federal income tax refunds to reduce or pay income tax debt owed to the state. To garnish a federal income tax refund, the Department files an offset claim with the United States Department of the Treasury. The Department can do this under the following conditions:

• It has been more than 180 days, but less than 10 years, since the assessment date (the date the debt was officially considered due)
• The Department sent a “notice of intent to offset” letter 60 days before filing the offset claim
• This letter is sent by certified mail to the taxpayer’s last known address
• The taxpayer is not in bankruptcy

When federal government sends offset funds directly to the Department of Revenue, the Dept. of the Treasury sends the taxpayer a “notice of payment offset” letter. The Department applies the payment to the taxpayer’s state income tax debt. The Department of Revenue cannot garnish Social Security income to offset a state income tax debt.

If you need assistance you can contact us at:

• 1-855-307-3983
• Business: [email protected]
• Individual: [email protected].