California Franchise Tax Board will snatch your Federal Refund using the federal Treasury Offset Program!
If you have a past-due, legally enforceable California income tax debt and are entitled to a federal income tax refund, the Franchise Tax Board (FTB) is authorized to offset that refund and apply it toward your balance due. This may result in an additional offset fee. The Bureau of Fiscal Services (BFS), a bureau of the U.S. Department of Treasury, administers this Treasury Offset Program.
FTB will send FTB 1102PC, Intent to Offset Federal Payments, by certified mail to your last known address. The letter explains the plan to notify BFS of the debt if you do not pay in full within 60 days.
FTB will continue to pursue federal offset activity even if you are in an installment agreement. They will also offset any California income tax refund until your debt is paid in full. BFS will send you a notification explaining why your federal refund was reduced, and that it may take several weeks before the federal refund reaches FTB. They will also send any remaining federal refund amount to you.
BFS will send you a notification explaining why your federal refund was reduced, and that it may take several weeks before the federal refund reaches FTB. They will also send any remaining federal refund amount to you.
To avoid the offset, you must take one of the actions below within 60 days from the date of the certified letter:
Pay the debt in full
Pay the full amount listed on FTB 1102PC, Intent to Offset Federal Payments. Use the payment coupon included in the letter when you send your check or money order. You may also pay online.
Request a review
If you believe that all or part of the debt is not past due or not legally enforceable, you must send evidence to support your position. Send your evidence to:
STATE OF CALIFORNIA
OFFSET PROGRAM MS A141
FRANCHISE TAX BOARD
PO BOX 2966
RANCHO CORDOVA CA 95741-2966
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