Iowans who owe a judgment debt to the United States or to victims of federal crimes may not receive their 2009 tax refunds. Instead, those funds may be offset to be applied to their outstanding debts through the Treasury Offset Program (TOP).

The offset was made possible in the late 1990s through the enactment of the Debt Collection Improvement Act (DCIA). It allows the United States to offset payments made through the Treasury from various government programs and agencies. For example, both monthly Social Security payments to retirees and annual Internal Revenue Service tax refunds are made through the Department of Treasury and may be subject to offset. The United States Attorney’s Office in the Northern District of Iowa coordinates that offset on both civil and criminal judgment debts.

“It is important that those who owe debts to victims of crime and to the government make every effort to repay their obligations,” said United States Attorney Stephanie M. Rose, “Particularly as we work to recover from this recession, victims have a right to their restitution as quickly as possible. We will continue to use every tool at our disposal to collect these debts.”

The offset program has been a very effective means of collecting debts. Between January 1 through mid-December of 2009, $108,912.81 was collected through the TOP in the Northern District of Iowa alone.

Nation-wide, more than $19 million were collected by offset in 2009.

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