Offset of Tax Refund Payments To Collect Delinquent State Unemployment Compensation Debts

This rule implements the authority added by the SSI Extension for Elderly and Disabled Refugees Act of 2008 ("2008 Act"), as amended by the Claims Resolution Act of 2010 (2010 Act") to offset overpayments of Federal taxes (referred to as "tax refund offset") to collect delinquent State unemployment compensation debts. The Department of the Treasury (Treasury) will incorporate the procedures necessary to collect State unemployment compensation debts as part of the Treasury Offset Program (TOP), a centralized offset program operated by the Financial Management Service (FMS), a Treasury bureau. FMS has promulgated a rule governing the offset of federal tax refunds to collect delinquent State income tax obligations. This rule amends FMS regulations to include unemployment compensation debts among the types of State debts that may be collected by tax refund offset. This rule does not affect any of the requirements or procedures for collecting delinquent State income tax obligations.