CA Franchise Tax Board sent your “Lotto winnings” or “tax refund” to another government agency you owe? Here’s why....
“Franchise Tax Board explains its “Offset Program “
We administer the Interagency Intercept Collection (IIC) program on behalf of the State Controller's Office. The IIC program intercepts (offsets) refunds when individuals and business entities owe delinquent debts to government agencies including the IRS and California colleges.
An interagency intercept occurs when our IIC program receives a request from one of the participating agencies to intercept tax refunds, lottery winnings, or unclaimed property payments from individuals or business entities who owe delinquent amounts. All refunds are subject to interception. We only intercept the amount owed. We intercept lottery winnings for all agencies except for the IRS.
If a participating agency requests we intercept someone’s funds, we seize and send only the amount of the debt to the requesting agency.
Refunds from joint tax returns may be applied to the debts of the taxpayer, spouse or registered domestic partner. After all tax liabilities are paid we apply any remaining credit to voluntary contributions if requested; and then, the remainder will be refunded. The State Controller’s Office will mail a check for the remaining amount.
If the taxpayer's debt was previously paid to the requestor and we also intercepted the taxpayer’s refund, any overpayment will be refunded by the agency that received the funds. Please allow 3 to 4 months of processing time.
For details about the debt, taxpayers must call the agency listed on the intercept notice we sent. We do not have any information about the taxpayer’s debt with the agency.
Please note we have changed our contact information:
Toll free number: (866) 563-2375
Fax: (916) 843-2460
Search our website for interagency intercept collection for more information about the IIC program.
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