Set-off or offset programs divert a taxpayer’s refunds and government payments to pay federal or state debts such as unpaid taxes, traffic fines, or child support. The Division of Taxation participates in several set-off programs that collect funds for the State of New Jersey as well as other government entities.
What is a notice of certification for offset of Federal tax refund?
At the time of the Federal Tax Refund Offset, FMS mails a Notice of Offset to the debtor stating that all or part of the Federal tax refund has been intercepted (offset) because of past-due support owed. The notice will advise the non-custodial parent to contact the local child support agency for further information.
What are the tax offset programs for New Jersey?
Lastly, New Jersey participates in programs with Maryland, Delaware, New York and Connecticut allowing for reciprocal tax withholdings. The federal Tax Offset Program allows the IRS to intercept federal tax refunds to satisfy child support debts.
How are federal tax refunds used in New Jersey?
Under the FOIL program, federal tax refunds are used to pay off New Jersey income tax liabilities. The IRS sends taxpayers a notice of past-due taxes. Taxpayers have 90 days to pay their taxes, and if they fail to pay them within 90 days, the Division of Taxation issues a Notice of Intended Federal Set-Off.
How does the federal tax refund offset program work?
A noncustodial parent whose support debt meets the criteria for Federal Offset or Passport Denial will receive a Pre-Offset Notice that explains the process and shows the amount of past-due support owed at the time of the notice.
How to contact New Jersey Division of taxation?
The Division of Taxation participates in several set-off programs that collect funds for the State of New Jersey as well as other government entities. You can contact the Set-Off/Offset Unit by email at [email protected] . Internal Revenue Service (IRS) (e.g., federal taxes);
