TREASURY OFFSET PROGRAM
The Department of Labor and Workforce Development (LWD) is now included in the Treasury Offset Program (TOP) of the Internal Revenue Service (IRS). Federal payments, such as Federal Tax refunds, will be used to offset outstanding unemployment insurance contributions, with associated interest and penalties due by employers.
Employers who have not taken any action to resolve this indebtedness, will be subject to submission to the Treasury Offset Program (TOP).Once the outstanding balance is submitted to TOP for offset, the IRS will reduce or withhold the amount of your LWD indebtedness from your eligible Federal Income Tax refund. Additional interest and other charges may be assessed on the unpaid balance. This offset will continue each year until your outstanding balance with LWD is satisfied.
The TOP IRS withholding process is authorized by Title 31 of the Code of Federal Regulations 285.8. The U.S. Treasury is not required to send you further notice of this action before your IRS refund is withheld and sent to LWD.
Employers who are unable to submit their full tax payment on or before the due date are directed to call the Employer Accounts’ Collection Section at (609) 633-6400, option 1, to make arrangements for payment of liability in order not to be included in the offset process.