(Federal Offset of Individual Liability)
The Federal Offset of Individual Liability Program authorizes the Federal Management Service (FMS) to send Federal Income Tax refunds to the State of New Jersey to pay existing New Jersey Gross Income tax debt.
The New Jersey Division of Taxation updates and submits current debtor information to FMS on a monthly basis. The Division of Taxation notifies indebted taxpayers that their Gross Income Tax debt may be set-off by their Federal Income Tax refund. Once the debt is paid, this debt will be removed from the program.
This has been a most successful program and many deficient New Jersey taxpayers have satisfied their Gross Income Tax liability. Collections as a result of this program are approximately $12 million each year.
Questions regarding this program should be directed to the Division of Taxation Call Center at (609) 292-6400.