Many states and the District of Columbia have reciprocal agreements with the U.S. Department of the Treasury enabling them to collect state tax liabilities by offsetting federal non-tax payments due to taxpayers from various Federal agencies. Federal law requires the states to follow certain basic procedures before initiating an offset, such as verifying that the debt is truly due and outstanding, and providing the taxpayer with notice and an opportunity to appeal.

Veranstaltungsart: Webinar

Startdatum / -uhrzeit:
30 March 2021, 2:00 PM EDT
Enddatum / -uhrzeit:
30 March 2021, 2:30 PM EDT

No jurisdiction has exacted more payments from taxpayers under the Treasury Offset Program than the District of Columbia. Unfortunately, many of these offsets are erroneous (i.e., the taxpayers did not owe an outstanding liability), and the District sometimes fails to comply with the due process procedures required by law. Once the District has claimed an offset under the program, trying to get the offset refunded or properly credited can be difficult. Moreover, due to systemic issues with the District’s record-keeping systems, this issue is not going away anytime soon.

Join Jeremy Abrams, a state tax practitioner in Reed Smith’s District of Columbia office, and Doug Lindholm, President and Executive Director of the Council On State Taxation (COST), for a discussion about the District’s participation in the Treasury Offset Program and its potential impact on your company. Jeremy and Doug will explain why the District has had problems properly using the program and provide tips on preventing a treasury offset or dealing with one after the fact. Finally, Jeremy and Doug will discuss potential improvements for the District’s use of the program going forward.