Even worse, it can happen again and again until it’s finally paid off if the total debt is greater than your refund each year. The federal Treasury Offset Program (TOP) is the force behind tax offsets. It authorizes the government to intercept a taxpayer’s refund to pay certain outstanding debts.

How does the federal government use tax offsets?

The federal Treasury Offset Program (TOP) is the force behind tax offsets. It authorizes the government to intercept a taxpayer’s refund to pay certain outstanding debts. TOP is run by the Bureau of Fiscal Service (BFS), a division of the Department of the Treasury—not so coincidentally the same agency that issues our tax refunds.

What are the different types of tax offsets in Australia?

According to the ATO, some of the more common tax offsets currently available to individual taxpayers in Australia include: This is actually two different offsets – the Low Income Tax Offset (LITO) and the Low and Middle Income Tax Offset (LMITO, sometimes colloquially referred to as the ‘Lamington’).

Can a person appeal a tax refund offset?

Only individuals who experience an offset due to obligations such as delinquent child support or back taxes can appeal a tax refund offset after the IRS intercepts their tax return. However, the taxpayer can only appeal the offset in one of two ways: by showing that he is not the person who owes the debt or that the amount owed is incorrect.

Where can I find information on tax refund offset?

If you owe debts to the United States or certain state agencies, your tax refund may be reduced to pay those debts. For general information about tax refund offset, please visit our TOP webpage at

How does the Treasury Offset program ( Top ) work?

Treasury Offset Program The Treasury Offset Program (TOP) collects past-due (delinquent) debts (for example, child support payments) that people owe to state and federal agencies. TOP matches people and businesses who owe delinquent debts with money that federal agencies are paying (for example, a tax refund).