Tax Refund Withheld for GSA Debt

In one recent case the General Services Administration claimed it overpaid a general contractor and demanded restitution. When this wasn’t done, the GSA told the IRS to withhold any tax refund. The Tax Court said that under the Treasury Offset Program, the IRS is required to withhold any legally enforceable past due debt owed to a federal agency; it has no ability to review the underlying debt.