Final Rule: Recovery of Delinquent Debts-Treasury Offset Program Enhancements (76 FR 65107)
SSA final rule removed the 10-year limitation to collect Title II, Tile XVI, and Title VIII overpayments from the federal offset. Additionally, State tax refunds are now also subject to the treasury offset program.
Effective November 21, 2011, the Treasury Department will be able to offset federal and state tax refunds to recoup the overpayments no matter how old.
There are no procedural changes to the TOP. As was the case under the old rules, prior to the reduction of Federal and State income tax refunds, SSA will send notice of intent to the overpaid person that must state: the amount of the overpayment, and the intent to garnish federal and state income tax refunds within 60 calendar days from the date of the notice. To prevent tax refunds offset the overpaid individual has the following options: 1) repay the overpayment in full; 2) provide evidence to SSA that the overpayment is not past due or legally enforceable; or 3) file a waiver.