U.S. Department of Treasury Offset Program (TOP)

The Treasury Offset Program (TOP) is a program that enables the United States Treasury to reduce or withhold any of your eligible federal income tax refund or business payment (federal vendor payments) by the amount of your tax debt.

The Virginia Department of Taxation is authorized to submit eligible state income and business tax debts to the TOP program to offset federal income tax refunds and federal vendor payments. Once a debt is submitted, the U.S. Department of Treasury will withhold or reduce your eligible federal tax refund or federal vendor payment by the amount of your debt. The Internal Revenue Code authorizes this process, known as "offset". The U.S. Department of Treasury is not required to send you a notice before your payment is offset.

If you have received a letter from the Department of Taxation regarding the U.S. Treasury Offset Program (TOP) and need to speak with a representative , call us at:

  • (804) 367-8031 for Individual Income Tax
  • ( 804) 367-8037 for Business Tax
  • (804) 367-8045 for Collections.

Offset of federal refunds is only one source of funds that the Department of Taxation may use to satisfy an outstanding tax bill. We may also withhold your state income tax refund, as well as payments from other state agencies. Because of timing differences in obtaining funds from various sources, it is possible for us to receive funds from more than one source to satisfy the same debt. For example, if we place a claim with TOP and then hold your Virginia income tax refund to pay off your account balance, we may still receive your federal income tax refund from TOP, even though we will let TOP know that your debt is no longer outstanding. If this happens, we will release your federal refund immediately upon receipt of the funds from TOP. You do not need to contact us to request your refund.









Last Updated 02/02/2017 11:38