Federal Non-Tax Debt Explained: Treasury OffsetProgram and Withheld Federal Funds.
The Bureau of the Fiscal Service reported that morethan $216 billion in federal non-tax debt was referredfor administrative collection across several federalagencies in FY23.
Federal non-tax debt includesmore than student loans. It caninvolve SBA disaster loans, benefit overpayments, andother obligations owed tofederal agencies.
The Treasury Offset Program allows the government to apply certain federal payments,including tax refunds, toward past-due non-tax debt.
In some cases, agencies may also apply otheradministrative enforcement actions, such as wagegarnishment, depending on the status of the debt.
Understanding how federal administrative processeswork is often the hardest part, especially whenenforcement starts affecting income or benefits.
SBA & Federal Debt Advisory Services provides education and advocacy-focused support to helpborrowers understand government notices and how enforcement may affect them.
Facing federal non-tax debt or Treasury Offset Program enforcement? Getclear information and informed support to understand what comes next. www.nontaxdebthelp.com