CFR /  Title 34  /  Part 30  /  Sec. 30.31 How does the Secretary apply funds recovered by offset

If the Secretary collects more than one debt of a debtor by administrative offset, the Secretary applies the recovered funds to satisfy those debts based on the Secretary's determination of the best interests of the United States, determined by the facts and circumstances of the particular case. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, 31 U.S.C. 3716(b))

IRS Tax Refund Offset Procedures