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Employment Development Department
Employment Development Department

FAQs - Treasury Offset Program (TOP)

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As required by federal law, the Employment Development Department (EDD) is participating in the federal Treasury Offset Program (TOP) for the collection of final, unpaid, and legally enforceable unemployment insurance (UI) benefit fraud overpayment debts from federal income tax refunds.

Prior to referring your total UI overpayment debt balance to the TOP to be collected from any federal income tax refunds paid by the Internal Revenue Service (IRS), the EDD Benefit Overpayment Collection Section will send you the Notice of Intent to Offset Your Federal Income Tax Refund (DE 957), which provides you the opportunity to pay the debt in full or prove the debt is not owed to prevent the debt from being referred to the TOP within 60 days. If you receive the notice and have questions you can contact the EDD Benefit Overpayment Collection Section at:

1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m., Pacific Time.

Once a federal offset is taken, a letter will be sent from the Department of The Treasury to notify you that the offset has occurred. The letter will include information regarding the amount and date of the offset, and the EDD contact information should you have questions or concerns regarding the UI benefit fraud overpayment debt that resulted in the refund offset.

For more information about the TOP, visit the Bureau of Fiscal Service, Treasury Offset Program Web page.

The EDD Benefit Overpayment Collection Section records indicate that you have a final, unpaid, and legally enforceable UI benefit fraud overpayment debt that can be sent to the TOP to be collected from your next federal income tax refund. The notice provides you with 60 days to prove that your debt is paid in full or you that you do not owe the debt. Refer to the instructions on the notice for paying your debt or submitting proof that you do not owe the debt. If you still have questions, you can call the EDD Benefit Overpayment Collection Section at:

1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m., Pacific Time.

If you have questions about the information on the Notice of Intent to Offset Your Federal Income Tax Refund (DE 957), call the EDD Benefit Overpayment Collection Section at:

1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m., Pacific Time.

If you do not agree with the total amount of overpayment debt, refer to the instructions on the notice. If you still have questions, call the EDD Benefit Overpayment Collection Section at:

1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m., Pacific Time.

To avoid having your federal income tax refund reduced, you must pay your debt in full within 60 days of the date on the Notice of Intent to Offset Your Federal Income Tax Return (DE 957). Refer to the form for instructions on how to pay by check, money order, or credit card, or:

  • To pay by check or money order, send your payment along with the payment coupon on the Notice of Intent to Offset Your Federal Income Tax Refund (DE 957) to:

    Employment Development Department (EDD)
    Attention: Cashier Benefit Recovery
    PO Box 826806
    Sacramento, CA 94206-0001

  • To pay by credit card, visit the Official Payments website or call toll-free 1-888-272-9829, select option “3”, enter jurisdiction code 1577, and follow the recorded instructions.
  • If you believe your debt was discharged in bankruptcy court, you must provide a copy of your bankruptcy court documents that contain your case number, filing date, and the name of the court in which you filed your bankruptcy claim.
  • If you believe you no longer owe this debt because it was paid in full, you must provide documents issued to you by the EDD Benefit Overpayment Collection Section showing the balance paid in full or to show proof that the debt amount was changed by an appeal decision from an Administrative Law Judge, include a copy of your appeal decision.
  • If you believe you do not owe this debt because of identity theft and someone else used your Social Security number, you must provide copies of documents that show you reported your identity theft to the proper authorities. These documents include police and credit agency reports, correspondence from the Internal Revenue Service (IRS), and/or your state tax agency or the Department of Motor Vehicles (DMV).

Send any of your evidence documents and a copy of the Notice of Intent to Offset Your Federal Income Tax Refund (DE957) to the Benefit Overpayment Collection Section:

By Mail:

Employment Development Department (EDD)
Benefit Overpayment Collection Section
P.O. Box 826218, Sacramento, CA 94230-6218

Or Fax: 1-916-449-2159

The law requires the EDD to recover your UI benefit fraud overpayment debt from federal and California state income tax refunds, state lottery winnings, unclaimed property funds, even if you are in a repayment agreement or your weekly unemployment benefits are being applied to your debt.

No. Your outstanding debt will be withheld from your future federal income tax refunds until the debt is paid in full.

The EDD records indicate that you have a UI benefit fraud overpayment debt based on a California UI claim filed with your Social Security number. The EDD is mandated under federal law to send the UI benefit overpayment debt to the IRS. Title 26, United States Code Section 6402(f) allows the IRS to collect your federal income tax refund to apply it to your UI benefit fraud overpayment debt. This is called an offset. If you have questions about your UI benefit fraud overpayment debt or the offset, call the EDD Benefit Overpayment Collection Section at:

1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m., Pacific Time.

No. Federal laws allow your unpaid debt to be taken from your federal income tax refund without your permission.

You must request your portion of the joint federal income tax refund through the Internal Revenue Service. Visit the Federal IRS website for information on how to request your portion of the refund. You may also contact the IRS at 1-800-829-3676, or visit a local IRS Office.

If you believe you do not owe this debt because you did not file a California UI claim, call the EDD Benefit Overpayment Collection Section at:

1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m., Pacific Time.

Your outstanding UI benefit fraud overpayment debt will be taken from all your future federal income tax refunds until the debt is paid in full. For information on how to pay your debt in full, call the EDD Benefit Overpayment Collection Section at:

1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m., Pacific Time.