Tax Refund Offset Law and Legal Definition

According to 12 CFR 313.121 [Title 12 -- Banks and Banking; Chapter III -- Federal Deposit Insurance Corporation; Subchapter A -- Procedure and Rules of Practice; Part 313 -- Procedures for Corporate Debt Collection; Subpart E -- Tax Refund Offset], tax refund offset means “withholding or reducing a tax refund payment by an amount necessary to satisfy a debt owed by the payee(s) of a tax refund payment.”