What is an offset?
An offset means that the Department of Revenue (we), or the federal government, have money due to you but it is applied first to a balance you owe. This means that we will apply the refund to your balance owed and send you what is left over.
Once you have a balance owing to the state and have received your first bill from us, we can automatically offset your state tax refund or overpayment. If we apply your refund to a debt you owe, you will receive a
Notice of Refund Offset letter. This notice:
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Notifies you of the offset and the offset amount.
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Shows which debt your refund paid.
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Includes which options you have to appeal.
We may also receive your federal tax refund and other federal payments to apply to your balance owed. Prior to any federal offset you will receive the following notices by mail.
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Notice of Intent to Offset Federal Income Tax Refund and Other Federal Payments: If you have tax debt, your federal tax refund may be sent to us to apply towards your debt owed. This letter comes certified through the US Postal Service.
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Notice of Intent to Offset Federal Payments to an Oregon Debt: If you owe tax debt, certain non-tax federal payments may be sent to us to apply towards your debt owed. Some federal payments, such as Social Security, are protected from offset and won’t be sent to us.
Can I appeal my offset?
No, you can’t appeal your offset. However, if you don’t owe the debt, but your spouse does, you can request your share of a joint refund that was offset. In this situation follow these steps:
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Step 1: You may request your portion of the refund with us, within 30 days of the date printed on the Notice of Refund Offset letter. In response to your request, you will receive correspondence detailing an approval or denial. For instructions on how to complete this step refer to your Notice of Refund Offset letter.
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If you miss the 30-day window in step 1 to request your portion of the refund, you may still ask for your portion by sending your request directly to the Oregon Tax Court, Magistrate Division.
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Step 2: Within 90 days of the date printed on the Refund Apportionment Denial letter you may appeal our denial or partial denial with the Magistrate Division. For instructions on how to complete this step refer to your Notice of Refund Offset letter.