Fiscal Service is responsible to collect overdue (delinquent) nontax debt for federal agencies. To accomplish this essential task, Fiscal Service runs multiple programs to assist agencies with delinquent debt collection.
- Agencies hand over their owed debt to the Fiscal Service Cross Servicing program for servicing.
- The Treasury Offset Program allows Fiscal Service to withhold from federal and state payments to individuals and businesses (such as tax refunds) to pay their delinquent debts (such as child support).
- Agencies can use Debt Collection Centers to collect debt that are exempt from Cross Servicing.
Agencies and Fiscal Service each play a role in collecting delinquent debt in a proper and timely manner.
Agency Debt Management
Agencies must transfer delinquent debt to Fiscal Service’s Cross Servicing program. Delinquent debts that meet certain criteria are exempt from Cross Servicing and may be serviced at Debt Collection Centers instead of in Cross-Servicing.
Treasury Debt Management
The U.S. Department of the Treasury’s Bureau of the Fiscal Service provides two key program that assist agencies in collecting delinquent debt. Agencies transfer delinquent debts to Cross Servicing for active collection, such as through payment or compromise agreements. The Treasury Offset Program (TOP) withholds funds from federal and state payments to apply to debts individuals and businesses owe to the government.
This page was last updated on April 29, 2021.