According to a news release issued by the state’s Department of Labor and Industry, L&I is partnering with the U.S. Department of Treasury to reclaim the benefits collected by means of fraud by way of federal tax refunds.
The federal Treasury Offset Program allows Pennsylvania to intercept the tax refunds of people who have intentionally claimed unemployment compensation benefits to which they were not entitled.
L&I began notifying claimants whose refunds could be affected in November 2011. By early February, almost 9,400 people were notified and given contact information for the department’s Benefit payment Control Section should they have questions. As of March 8, L&I used TOP to reclaim $6.5 million from 2,391 income tax interceptions.
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