If your client's refund is less than expected and you see a coinciding TCS TREAS 449 offset, this means that the tax payers refund has been reduced to repay a debt collected through the Treasury Offset Program. This program is designed to collect delinquent debts that are owed to states and federal agencies.
The Bureau of Fiscal Services will send your client a notice if there’s a refund offset. The offset notice will show:
Original refund amount
Your refund offset amount
Agency receiving the payment
Address and telephone number of the agency
If you don’t get a notice, you’ll need to call:
Bureau of Fiscal Services at 800-304-3107
TDD at 866-297-0517
Contact the agency listed on the notice if:
You believe you don’t owe the debt.
You’re disputing the amount of money that has been taken from your refund.
Contact the IRS only if your original refund on the debt offset notice differs from the refund amount on your return.