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SNAP CERTIFICATION MANUAL – SECTION 15000 15900 State Income Tax Refund Interception 15940 Debts Referred for TOP Offset

debt. This process is called the Treasury Offset Program or TOP. The Arkansas Department of Health & Human Services has signed a letter of agreement with USDA, Food and Nutrition Service (FNS), to participate in TOP. The Accounts Receivable Overpayment Unit of the Division of Fiscal Management certifies delinquent debts to FNS so that monies owed by SNAP debtors may be offset through TOP.

15940 Debts Referred for TOP Offset SNAP Manual 01/01/07 All SNAP overpayments debts that meet the criteria established by Federal Law will be sent to USDA, Food and Nutrition Service, (FNS), to be forwarded to the Department of Treasury. The Department of Treasury will apply the offset and apply the recovered funds to the SNAP overpayment account. SNAP overpayment debts will be referred to the Treasury Offset Program (TOP) if they met the following criteria: 1. The debt must be legally established and legally enforceable as substantiated by the DHS Overpayment Unit. To meet this requirement, the debtor must have been notified of: • The debt amount • The reason the debtoccurred • The time period of the debt • The procedures for repaying the debt • The right to request an administrative hearing to dispute the debt 2. The debt must be at least 180 days delinquent. This means that the overpayment debt is in arrears in an amount equal to or greater than the amount of six-monthly payments as established in the initial repayment notice or a subsequent repayment agreement. 3. The total balance for all delinquent debts must be at least$25.00. 4. The debt must be less than or equal to 10 years delinquent unless the household files for an administrative hearing or renegotiates a payment agreement. When the hearing decision is in favor of the agency or the new payment agreement becomes effective the delinquency date is altered. When debts are established by a judgment in a court of law, the 10-year limit is removed. 5. The debt must not be included under an automatic stay due to bankruptcy. 6. The debt must not be currently under litigation to establish its validity.