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SNAP CERTIFICATION MANUAL – SECTION 15000 15900 State Income Tax Refund Interception 15930 Treasury Offset Program

15900 State Income Tax Refund Interception

SNAP Manual 01/01/07 Act 372 of 1983 as amended (Ark. Stats. Ann. S 84-4901 thru 84-4918), Act 987 of 1985, and Act 1154 of 1991 authorize the collection of debts owed to the State through the offset of the casehead/debtor’s state income tax refund. The amount offset will be applied to the balance of the debt owed to the State. Delinquent SNAP overpayment debts will be submitted to the Department of Finance and Administration, Revenue Division if the debt balance is $20.00 or more. If the casehead/debtor has more than one overpayment debt, the total of all valid debts will be submitted for offset. Individuals, whose debts are being submitted for tax offset, will be notified by mail of the intended action and given an opportunity to repay the debt or to request a hearing. All offset activity will be governed by the provision established and required by Arkansas law in the above referenced acts and DHS state tax refund policy.

15930 Treasury Offset Program SNAP Manual 01/01/07 The Debt Collection Act of 1982 and the Debt Collection Improvement Act (DCIA) of 1996 authorizes the Department of the Treasury to be the primary Federal collection agent for the collection of delinquent SNAP debts. As such, the Department of the Treasury now has the responsibility for operating the Federal Tax Refund Offset Program (FTROP), the Federal Salary Offset Program (FSOP), and the Program for Administrative Offset. The certification of a delinquent debt for any of the three actions will be made through the Treasury Offset Program (TOP). Federal Tax Refund Offset is the reduction (offset) of a delinquent SNAP debtor’s federal income tax refund by the amount of the delinquent SNAP debt and applying such amount reduced (offset) against the delinquent SNAP debt. Federal Salary Offset is the reduction in salary of a federal employee who owes, and is delinquent in repayment of, a SNAP overpayment debt and crediting such amount to the delinquent debt. Administrative Offset is the withholding of funds payable by the federal government to an individual owing a delinquent SNAP debt and crediting such funds withheld to the delinquent