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Department of Taxation and Finance

Other offset programs

If you receive a notice that we are referring your tax debt for offset, you must resolve your tax debt within the timeframe listed in the notice. If you do not resolve your debt within this timeframe:

  • we will refer your tax debt for offset, and
  • any payment due to you will be applied to your tax debt.

If the amount applied does not pay your balance in full, you must resolve your remaining balance. If you do not resolve your balance, we may proceed with collection action.

Programs that offset other payment types

The Lottery Prize Winnings Offset Program (LWOP) is a joint program between the New York State Tax Department and New York State Lottery Division. If you have personal income tax debt, we may offset winnings from:

  • racinos (video lottery terminals)
  • casinos
  • New York State Lottery draw games or scratch-off games played at stores

The Reciprocal Offset Program (ROP) is a joint program between the New York State Tax Department and the U.S. Department of the Treasury. If you have personal income tax or business tax debt, we may offset federal non-tax payments owed to you, such as 1099 income or expense checks.

If we refer your debt to the U.S. Department of the Treasury for offset of your federal payment, we will send you a DTF-452, Notice of Intent to Refer Your Debt. If you do not resolve your debt or provide evidence to successfully dispute our right to request offset of those payments within 60 days of this notice, your Treasury payments will be offset to pay your New York State tax debt.

We will also deduct any processing fees related to the offset from your payment.

The State Contract Offset Program (SCOP) is a joint program between the New York State Tax Department and New York State Comptroller (OSC). If you have personal income tax debt, business tax debt, or debt owed to another New York State agency, we may offset your:

  • New York State contract payments, or
  • New York State vendor payments.

If we refer your debt to OSC for offset of your payments, we will send you a DTF-650.1, Notice of Pending Contract Payment Offset. If you do not resolve your debt within 30 days of this notice, your OSC payment will be offset to pay your New York State debt.

The State Liquor Authority Offset Program (SLA) is a joint program between New York State Tax Department and New York State Liquor Authority (SLA). If you have a business tax debt, we may offset refunds from the State Liquor Authority.

The Unclaimed Funds Offset Program (UCF) is a joint program between the New York State Tax Department and New York State Comptroller’s Office regarding unclaimed funds. If you have personal income tax or business tax debt, we may offset:

  • outstanding unclaimed funds, such as those that originate from closed bank accounts, unclaimed security deposits, and unpaid stock dividends, or
  • claims for unclaimed funds submitted by corporations.

If we offset your unclaimed funds, we will send you a DTF-452.1, Notice of Offset of your NYS Unclaimed Funds, which details the amount of the offset, and any remaining balance of your tax debt.

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