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.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments