Which agency can offset a debt against a tax refund?

Which agency can offset a debt against a tax refund?

• A. Department of Justice
• B. GAO
• C. Internal Revenue Service
• D. SSA

Answer: (C)

Offsetting a debt against a tax refund is a tool used to collect delinquent federal debts by intercepting tax refunds before they’re issued. The agency that administers tax refunds and participates in this offset process is the Internal Revenue Service, which works with the Treasury Offset Program to apply all or part of your refund to the owed debt. The other agencies listed don’t handle this tax-refund interception; they operate in different areas of federal finance or governance.

Offsetting a debt against a tax refund is a tool used to collect delinquent federal debts by intercepting tax refunds before they’re issued. The agency that administers tax refunds and participates in this offset process is the Internal Revenue Service, which works with the Treasury Offset Program to apply all or part of your refund to the owed debt. The other agencies listed don’t handle this tax-refund interception; they operate in different areas of federal finance or governance.