Louisiana – Federal-State Offset Program Will Collect Debts Owed to the State

SALT Report 1805 – The Louisiana Department of Revenue announced that they have partnered with the federal government in an effort to collect taxpayer debts.  The Federal-State Offset Program will allow the Department to intercept payments made by the federal government to vendors and contractors and apply them to any debts owed to the state.

Under the program, state agencies can submit the name of debtors whose debts they have made extensive efforts to collect and the program will match those debts to a federal database of taxpayers, vendors, and contractors who are owed refunds or payments by the federal government. If there is a match, the program will intercept those refunds or payments and forward them to the state agency for payment of the outstanding debt.

For example, if a contractor has a contract with a government agency but owes money to the Department of Health, the Department of Revenue is authorized to claim any payments due to the contractor from the federal government and forward them to the Department of Health.

For Further Information:

Louisiana Department of Revenue – Press Release



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