Code Section 6402

Code Section Effective Date Name of Act Name of Provision 10yr Revenue Estimate ($millions)
6402(f) 12/8/2010 The Claims Resolution Act of 2010 Collection of Past-Due, Legally Enforceable State Debts 2,662

Collection of Past-Due, Legally Enforceable State Debts

Explanation of Provision

The provision expands the ability of a State to collect benefit overpayments from a benefit recipient’s Federal income tax overpayment in two ways. It removes the requirement that the excessive or erroneous payment of State benefits have been attributable to fraud. It also no longer requires that the State provide notice to the taxpayer by certified mail of the State’s intent to submit a request for offset to the IRS.

In addition, the authority for such offsets is now permanent. The provision does not change the present-law provision under which a State’s ability to request offset of unemployment compensation debts against Federal income tax refunds is limited to requests with respect to residents of the requesting State.

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