Which agency can offset a debt against a tax refund?

Prepare for the Certified Defense Financial Manager Exam 1. Study with flashcards and multiple choice questions. Each question includes hints and explanations to boost your knowledge. Ace your exam with confidence!

Multiple Choice

Which agency can offset a debt against a tax refund?

Explanation:
Offsetting a debt against a tax refund is a tool used to collect delinquent federal debts by intercepting tax refunds before they’re issued. The agency that administers tax refunds and participates in this offset process is the Internal Revenue Service, which works with the Treasury Offset Program to apply all or part of your refund to the owed debt. The other agencies listed don’t handle this tax-refund interception; they operate in different areas of federal finance or governance.

Offsetting a debt against a tax refund is a tool used to collect delinquent federal debts by intercepting tax refunds before they’re issued. The agency that administers tax refunds and participates in this offset process is the Internal Revenue Service, which works with the Treasury Offset Program to apply all or part of your refund to the owed debt. The other agencies listed don’t handle this tax-refund interception; they operate in different areas of federal finance or governance.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy