General notification

Before referring a debt for collection by administrative offset, a creditor agency must provide each debtor with:

(a) a written notification of the nature and the amount of the debt, the intention of the agency to collect the debt through administrative offset, and an explanation of the debtor’s rights;

(b) an opportunity to inspect and copy the records of the agency;

(c) an opportunity for review within the agency; and

(d) an opportunity to enter into a written repayment agreement.

Can they offset my tax refund and then tell me after the fact?

Yes, after the debt has been referred for administrative offset and an offset is taken, the disbursing official conducting the offset must notify the debtor/payee that the offset has occurred (including the amount and type of payment that was used to pay the debt) and the identity of the creditor agency requesting the offset, including a contact name. The specific timing of the notice is not mandated for tax refund offsets.

What if I did not receive a notice at all?

Regardless of the type of payment, failure of the debtor to receive notice will not affect the legality of the offset (withholding).