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State offset programs eating rebates

June 10, 2008

Remember my post about a month ago that examined why some folks’ rebate checks are showing up short or not at all? One of the main reasons is that the money was diverted as part of the U.S. Treasury offset program.

Through this special collection process, state tax departments and other government agencies can collect from federal tax refunds any money they say they are owed. The money comes out before the taxpayer ever sees a penny from the IRS.

Stimulus_rebate_2Well, as noted earlier, it applies to rebate checks, too.

Down in Georgia, tax collectors are being particularly aggressive this rebate season. By the end of May, the state had intercepted 16,000 federal stimulus checks from people who allegedly owe back Georgia taxes, producing a Peach State treasury windfall of more than $4.66 million.

And it’s looking for more. Georgia tax officials say the state’s list of tax delinquents covers 1,300 pages. That’s 36,000-plus people whom the state says owe it a combined $6 billion in back taxes.

As for the current economic stimulus payments, Georgia Public Broadcasting news reports that the state ranks third nationally for number of rebate seizures. (It doesn’t elaborate on which states have seized more; I’m still checking.)

In the five years that Georgia has participated in the federal offset program, according to GPB, the state has collected a total of $137 million in back taxes.

You can listen to a report on the offset program in general and the Georgia situation in particular at this National Public Radio Web page.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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