TOP Horace Tate and Katrina Gonzalez by CCO

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									Treasury Offset Program

  Horace Tate, Senior IT Specialist
  Katrina Gonzalez, IT Specialist
  Debt Program Support Branch
  Debt Program Division




                                      1
    What is the Treasury Offset Program?

•    TOP is a centralized offset process that intercepts Federal
     payments of payees who owe delinquent debts to agencies
     that have submitted debt information to FMS.


Offset is withholding                      Centralized offset is the
funds payable by the                       offset of payments
United States to a person                  disbursed by FMS and
to satisfy a debt owed to                  other Federal disbursing
the United States or to a                  agencies through the
state.                                     TOP.




                                                               2
    What is the Treasury Offset Program?

   TOP is one of the largest and most effective
    tools in collecting delinquent debts for Federal
    and state agencies:
    • Debts owed to the United States (tax & non-tax);
    • Child support obligations enforced by state agencies;
        and
    •   State income tax debts.


   Collections total over $3 billion per year.


                                                       3
           TOP Process

                      Does payee name &
                      TIN match debtor
                        name & TIN?

PAYMENTS
                             No                Check or EFT
                                               to payee


             TOP
           Database


  DEBTS                    Yes
                                                     $$ to creditor
                                                     agency

                                  Notice to debtor



                                                          4
   Centralized Salary Offset

Participating Salary Paying
 Agencies:

     Interior
     National Finance Center
     DoD-DFAS
     U.S. Postal Service
     GSA

                                5
New NTDO Vendor Payments

U.S. Army Corp of Engineers (USACE)
   Implemented July 2007.

U.S. Postal Service (USPS)
   Expected implementation
   Spring 2008.




                                  6
Additional Payment Methods
CTX Payments
  • Implementation planned for December 2007.
Fedwire
  • For Fedwire payments that match debts in TOP,
   the agency will be required to use payment
   methods that go through the Treasury Offset
   Program, allowing offset/levy.

  • Implementation planned for December 2007.


                                            7
          As of October 10, 2007
         TOP Database Contains:


• $36.9 billion in Federal Non-Tax Active Debts.

• $88.1 billion in Child Support Active Debts.

• $126.4 billion in Federal Tax Active Debts.

• $6.1 billion in State Active Debts.

• Total - $257.5 billion!


                                            8
    CY Collections Through TOP
             As of October 3rd, 2007

• Administrative   Offsets   $157.9 million

• Tax Refund Offset
    Child Support            $1.6 billion

• Tax Refund Offset
    Federal Non-Tax Debt     $1.2 billion

• Tax Refund Offset
    State Income Tax Debt    $225.3 million

• Tax Levy                   $275.2 million



                                              9
      State Reciprocal Program
   States refer debts to TOP for offset against
    Federal vendor payments and State
    payments will be matched against Federal
    debts.
   Interim rule on Administrative Offset Under
    Reciprocal Agreements with States was
    published January 4, 2007.
   Pilot began in June 2007 with Maryland &
    New Jersey started in July.

                                             10
              CMS Payments

Working with CMS to determine the best option to levy Part
A and B payments disbursed by CMS

      Option 1 – Have Treasury disburse these payments
      Option 2 – Have CMS use the NTDO process

CMS Part C and D payments are disbursed by Treasury and
are available for levy

Medicare payments are not legally subject to administrative
offset.




                                                   11
        Legislative Proposals
• Unemployment Trust Fund to
  Participate in TOP.
• Removal of 10 Year Statute of
  Limitations on Offsets.
• Allow the offset of federal income
  tax refunds for delinquent state
  tax for out-of-state residents.
• Allow the offset of federal benefit
  payments to collect delinquent
  child support.
                                        12
    Creditor Agency TOP Reports
   Reports available on the TOP Client:
          • Individual Inquiry by TIN
          • Individual Inquiry by Debt Number
          • Offset/Levy and Reversal Activity Report
          • IPAC Transaction Report
          • Debtor Locator Report

   Additional Reports:
          • Debt Extract
          • VA Weekly Offset Extract

                                                  13
    Payment Agency TOP Reports
   Reports available on the TOP Client:
          • Individual Inquiry by TIN
          • Offset Activity Report

   Additional Reports:
          • Payment Extract File




                                           14
         Debt Program Division
                    Points of Contact



Dean Balamaci, Division Director
Debt Program Division
(202) 874-0540

Rosemary McCambridge,Branch Manager
Debt Program Relations Branch
(202) 874-6727

Alyssa W. Riedl, Branch Manager
Program Support Branch
(202) 874-6859




                                        15
Questions?




             16

								
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