A new automated debt collection program called the Federal Treasury Offset Program (FTOP) has now been fully launched by the Franchise Tax Board (FTB). The FTOP will intercept federal tax refunds of individuals who owe back California income tax in order to pay those debts.
According to the U. S. Treasury’s Offsets Matter September 2012 newsletter, "California has now collected the most funds through the State Income Tax Program," which places California in the #1 spot nationally, with a net collection amount of over $64 million.
FTB first launched a limited pilot of the program in 2008 to see if the project would be feasible. The pilot’s success allowed FTB to officially begin the FTOP project in 2010 under the direction of FTB CIO Cathy Cleek and Accounts Receivable Chief, Carol Williams.
Over the past two years, the project has dealt with cost and schedule overruns, but was able to get back on track during the second phase.
"Because of our proactive approach to cost containment, the FTOP project was completed under budget, and nearly six months ahead of schedule," said Christopher Johnson, the FTOP Project Manager, in a statement.
The FTOP exchanges debtor data with the Financial Management Service (FMS) of the U. S. Department of Treasury. The FTB also collaborated with California Technology Agency and California’s Employment Development Department in order to use the existing secure network infrastructure.
"California Technology Agency provided us an inexpensive alternative to creating our own non-internet hard-line connection," added Johnson.
