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VIRGINIA DEPARTMENT OF SOCIAL SERVICES RECIPIENT CLAIMS

10/24 VOLUME V, PART XVII, APPENDIX I, PAGE 1

Treasury Offset Program

The Treasury Offset Program (TOP) is used to recover delinquent SNAP claims through the offset of federal payments. Federal payments, such as tax refunds, Social Security benefits and salaries or retirement benefits of federal employees, may be used to repay SNAP claims. A debtor referred to TOP may have any eligible federal payment due to them intercepted through TOP.

All liable persons are equally responsible for the full amount and any fees associated with TOP.

The Finance Division of the Virginia Department of Social Services is responsible for the administration of TOP. The Finance Division’s system will determine if claims are delinquent, refer claims for TOP certification and will keep all payment and intercepts information.

Referral Process

Recipient claims that are delinquent for 120 days and are legally enforceable must be referred to TOP. This excludes a debtor who is a member of a participating household whose benefits are being reduced.

Legally enforceable claims are those where the debtor:

• received a 60-day notice; • was given the right to appeal; • no longer participates in the Supplemental Nutrition Assistance Program; and • currently has an outstanding balance. The outstanding balance must be more than $25.

Exceptions to Referring to TOP

Claims will not be referred to TOP if any of the following apply:

• The debtor is currently paying on any approved existing claim; • The claim is in pending status because collection has been postponed awaiting a court or Administrative Disqualification Hearing (ADH) decision; • The debtor enters into a repayment agreement and makes a payment during the 60-day notice period; • A court orders the debtor to pay the claim through court or a probation office; • The debtor is a member of a participating household undergoing allotment reduction; or • The debtor has filed for or is in bankruptcy proceedings.

Notification

The debtor must be given notice 60 days in advance of the impending referral to TOP. The 60-day notice will be sent to an address that has been verified as an adequate address by the Food and Nutrition Service (FNS). The notice will inform all liable debtors that the claim amount and the appropriate action needed to prevent the debt from being offset. The notice must advise the debtor of the right to appeal the referral at both the state and federal level and provide the timeframe for requesting an appeal.

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