US Code

Public Law 119-83 (04/13/2026)

31 U.S.C. § 3720A

Reduction of tax refund by amount of debt

(a)
section 9 of the Act of May 18, 1933 16 U.S.C. 831h Any Federal agency that is owed by a person a past-due, legally enforceable debt (including debt administered by a third party acting as an agent for the Federal Government) shall, and any agency subject to (), owed such a debt may, in accordance with regulations issued pursuant to subsections (b) and (d), notify the Secretary of the Treasury at least once each year of the amount of such debt.
(b)
No Federal agency may take action pursuant to subsection (a) with respect to any debt until such agency—
(1)
notifies the person incurring such debt that such agency proposes to take action pursuant to such paragraph with respect to such debt;
(2)
gives such person at least 60 days to present evidence that all or part of such debt is not past-due or not legally enforceable;
(3)
considers any evidence presented by such person and determines that an amount of such debt is past due and legally enforceable;
(4)
satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under paragraph (3) with respect to such debt is valid and that the agency has made reasonable efforts (determined on a government-wide basis) to obtain payment of such debt; and
(5)
certifies that reasonable efforts have been made by the agency (pursuant to regulations) to obtain payment of such debt.
(c)
Upon receiving notice from any Federal agency that a named person owes to such agency a past-due legally enforceable debt, the Secretary of the Treasury shall determine whether any amounts, as refunds of Federal taxes paid, are payable to such person. If the Secretary of the Treasury finds that any such amount is payable, he shall reduce such refunds by an amount equal to the amount of such debt, pay the amount of such reduction to such agency, and notify such agency of the individual’s home address.
(d)
The Secretary of the Treasury shall issue regulations prescribing the time or times at which agencies must submit notices of past-due legally enforceable debts, the manner in which such notices must be submitted, and the necessary information that must be contained in or accompany the notices. The regulations shall specify the minimum amount of debt to which the reduction procedure established by subsection (c) may be applied and the fee that an agency must pay to reimburse the Secretary of the Treasury for the full cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence may be used to reimburse appropriations which bore all or part of the cost of applying such procedure.
(e)
Any Federal agency receiving notice from the Secretary of the Treasury that an erroneous payment has been made to such agency under subsection (c) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such agency under such subsection have been paid to such agency).
(f)
(1)
Subsection (a) shall apply with respect to an OASDI overpayment made to any individual only if such individual is not currently entitled to monthly insurance benefits under title II of the Social Security Act.
(2)
(A)
The requirements of subsection (b) shall not be treated as met in the case of the recovery of an OASDI overpayment from any individual under this section unless the notification under subsection (b)(1) describes the conditions under which the Commissioner of Social Security is required to waive recovery of an overpayment, as provided under section 204(b) of the Social Security Act.
(B)
In any case in which an individual files for a waiver under section 204(b) of the Social Security Act within the 60-day period referred to in subsection (b)(2), the Commissioner of Social Security shall not certify to the Secretary of the Treasury that the debt is valid under subsection (b)(4) before rendering a decision on the waiver request under such section 204(b). In lieu of payment, pursuant to subsection (c), to the Commissioner of Social Security of the amount of any reduction under this subsection based on an OASDI overpayment, the Secretary of the Treasury shall deposit such amount in the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, whichever is certified to the Secretary of the Treasury as appropriate by the Commissioner of Social Security.
(g)
In the case of refunds of business associations, this section shall apply only to refunds payable on or after . In the case of refunds of individuals who owe debts to Federal agencies that have not participated in the Federal tax refund offset program prior to the date of enactment of this subsection, this section shall apply only to refunds payable on or after .
(h)
(1)
1
1 So in original. Subsec. (h) contains two pars. designated (1) and (2).
  The disbursing official of the Department of the Treasury—
(1)
1  shall notify a taxpayer in writing of—
(A)
the occurrence of an offset to satisfy a past-due legally enforceable nontax debt;
(B)
the identity of the creditor agency requesting the offset; and
(C)
a contact point within the creditor agency that will handle concerns regarding the offset;
(2)
1  shall notify the Internal Revenue Service on a weekly basis of—
(A)
2
2 So in original. Probably should not be hyphenated.
the occurrence of an offset to satisfy a past-due legally enforceable non-tax  debt;
(B)
the amount of such offset; and
(C)
any other information required by regulations; and
(3)
shall match payment records with requests for offset by using a name control, taxpayer identifying number (as that term is used in section 6109 of the Internal Revenue Code of 1986), and any other necessary identifiers.
(h)
(2)
1  The term “disbursing official” of the Department of the Treasury means the Secretary or his designee.
(i)
section 9 of the Act of May 18, 1933 16 U.S.C. 831h An agency subject to (), may implement this section at its discretion.

Pub. L. 98–369, div. B, title VI, § 2653(a)(1)98 Stat. 1153 Pub. L. 101–508, title V, § 5129(b)104 Stat. 1388–287 Pub. L. 102–589, § 3106 Stat. 5133 Pub. L. 103–296, title I, § 108(j)(2)108 Stat. 1488 Pub. L. 104–134, title III, § 31001(u)(1)110 Stat. 1321–375 (Added , , ; amended , , ; , , ; , , ; , (v)(1), (w), , .)

Editorial Notes

References in Text

act Aug. 14, 1935, ch. 531 49 Stat. 620 section 404 of Title 42section 1305 of Title 42The Social Security Act, referred to in subsec. (f)(1), is , . Title II of the Act is classified generally to subchapter II (§ 401 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. Section 204 of the Act is classified to . For complete classification of this Act to the Code, see and Tables.

Pub. L. 102–589The date of enactment of this subsection, referred to in subsec. (g), is the date of enactment of , which was approved .

section 6109 of Title 26Section 6109 of the Internal Revenue Code of 1986, referred to in subsec. (h)(3), is classified to , Internal Revenue Code.

Amendments

Pub. L. 104–134, § 31001(v)(1)1996—Subsec. (a). , amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Any Federal agency that is owed a past-due legally enforceable debt (other than any past-due support), including debt administered by a third party acting as an agent for the Federal Government, by a named person shall, in accordance with regulations issued pursuant to subsections (b) and (d), notify the Secretary of the Treasury at least once a year of the amount of all such debt.”

Pub. L. 104–134, § 31001(w)Subsec. (h). , amended subsec. (h) generally. Prior to amendment, subsec. (h) read as follows: “For purposes of this section—

section 9 of the Act of May 18, 1933 48 Stat. 63 16 U.S.C. 831hsection 103 of title 5“(1) the term ‘Federal agency’ means a department, agency, or instrumentality of the United States (other than an agency subject to (, chapter 32; )), and includes a Government corporation (as such term is defined in , United States Code);

“(2) the term ‘past-due support’ means any delinquency subject to section 464 of the Social Security Act;

“(3) the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act; and

“(4) the term ‘person’ means an individual; or a sole proprietorship, partnership, corporation, nonprofit organization, or any other form of business association.”

Pub. L. 104–134, § 31001(u)(1)Subsec. (i). , added subsec. (i).

Pub. L. 103–2961994—Subsec. (f)(2). substituted “Commissioner of Social Security” for “Secretary of Health and Human Services” wherever appearing.

Pub. L. 102–589, § 3(1)1992—Subsec. (a). , amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Any Federal agency that is owed a past-due legally enforceable debt (other than any past-due support) by a named person shall, in accordance with regulations issued pursuant to subsection (d), notify the Secretary of the Treasury of the amount of such debt.”

Pub. L. 102–589, § 3(2)Subsec. (b)(3) to (5). , struck out “and” at end of par. (3), substituted “(determined on a government-wide basis) to obtain payment of such debt; and” for “to obtain payment of such debt.” in par. (4), and added par. (5).

Pub. L. 102–589, § 3(5)Subsec. (g). , added subsec. (g). Former subsec. (g) redesignated (h).

Pub. L. 102–589, § 3(3)Subsec. (h). , (4), redesignated subsec. (g) as (h) and added par. (4).

Pub. L. 101–508, § 5129(b)(1)1990—Subsec. (a). , struck out “OASDI overpayment and” after “other than any”.

Pub. L. 101–508, § 5129(b)(2)Subsecs. (f), (g). , (3), added subsec. (f) and redesignated former subsec. (f) as (g).

Statutory Notes and Related Subsidiaries

Effective Date of 1994 Amendment

Pub. L. 103–296section 110(a) of Pub. L. 103–296section 401 of Title 42Amendment by effective , see , set out as a note under , The Public Health and Welfare.

Effective Date of 1992 Amendment

Pub. L. 102–589section 7 of Pub. L. 102–589section 3718 of this titleAmendment by effective as if enacted on , see , set out as a note under .

Effective Date of 1990 Amendment

Pub. L. 101–508Pub. L. 98–369section 5129(d) of Pub. L. 101–508section 6402 of Title 26Amendment by effective , and inapplicable to refunds to which amendments by section 2653 of the Deficit Reduction Act of 1984, , do not apply, see , set out as a note under , Internal Revenue Code.

Effective Date

section 6402 of Title 26section 2653(c) of Pub. L. 98–369section 6402 of Title 26Section applicable with respect to refunds payable under , Internal Revenue Code, after , see , as amended, set out as an Effective Date of 1984 Amendment note under .

Section 2653 of Pub. L. 98–369Clarification of Congressional Intent as to Scope of Amendments by

section 2653 of Pub. L. 98–369section 9402(b) of Pub. L. 100–203section 6402 of Title 26For provisions that nothing in amendments by , enacting this section, be construed as exempting debts of corporations or any other category of persons from application of such amendments, with such amendments to extend to all Federal agencies (as defined in such amendments), see , set out as a note under , Internal Revenue Code.