The U.S. Department of Treasury, through its Bureau of the Fiscal Service (BFS), processes tax refunds and oversees the Treasury Offset Program (TOP). This program allows BFS to reduce tax refunds to cover certain outstanding debts, including:
Overdue child support
Unpaid federal agency debts (non-tax)
State income tax liabilities
Specific unemployment-related debts owed to a state, such as overpayments due to fraud or unpaid contributions to a state fund
If you owe a qualifying debt, BFS may use a portion of your refund to offset the amount owed. Any remaining balance will be issued via check or direct deposit, as requested on your tax return.
To determine if your debt is subject to offset, you can contact the relevant agency. You may also reach out to BFS’s TOP call center for agency contact details. If your refund is reduced due to an offset, BFS will notify you of the original refund amount, the portion deducted, the agency receiving payment, and its contact information. The IRS will be informed of the adjustment after your refund date has passed. If you believe the offset was made in error or you dispute the amount taken, you should contact the agency listed on the notice. The IRS should only be contacted if the original refund amount on the BFS notice differs from the refund amount on your tax return. If you do not receive a notice, call the BFS TOP call center at 800-304-3107 (or TTY/TDD 800-877-8339) from Monday to Friday, 7:30 a.m. to 5 p.m. CST.
Injured Spouse Relief
If you filed a joint tax return and part of your refund was applied to a debt owed solely by your spouse, you may be eligible to reclaim your portion. To do so, file Form 8379, Injured Spouse Allocation with the IRS.
You can submit Form 8379 in one of the following ways:
Along with your original joint tax return (Form 1040 or 1040-SR)
With an amended joint tax return (Form 1040-X) if claiming a refund
Separately, after receiving notice of an offset
If submitting Form 8379 by mail along with your joint return or an amended return, write "Injured Spouse" in the top left corner of the first page.
Processing Times and Instructions
The IRS can process Form 8379 before an offset occurs. If submitted with your original return, processing may take:
11 weeks for electronically filed returns
14 weeks for paper-filed returns
8 weeks if submitted separately after the joint return has been processed
To prevent delays, follow the form’s instructions carefully. When submitting Form 8379 separately, include both spouses’ taxpayer identification numbers in the same order as on the joint return. The injured spouse must sign the form and attach the necessary W-2, W-2G, and any 1099 forms reflecting federal tax withholding. Do not attach your previously filed joint return.
Mail Form 8379 to the IRS Service Center where your original return was filed. Processing takes at least 8 weeks. The IRS will calculate the injured spouse’s portion of the refund, factoring in state community property laws if applicable.
Not all debts result in a tax refund offset. For more information regarding non-tax debts, contact BFS’s TOP call center at 800-304-3107 (TTY/TDD 800-877-8339).