03/99 Revised 09/23/09 Training Completed 10/09
Section 457 of the Social Security Act (42 USC 657) requires payments received from any source, other than Federal tax intercept, be credited to unpaid current support first. Any amounts received that exceed current support must be applied to Non-IV-A arrears debts before IV-A arrears debts.
State tax refund intercept payments are automatically posted according to the ORSIS distribution program when the interdepartmental transfer from State Finance is received.
1. ORSIS determines the PO BOX CODE to identify the ORSIS distribution program the tax payment will follow.
2. ORSIS posts the State tax payment to the obligor’s participant account and places a hold on the transaction.
a. The 30-day transaction hold is entered to allow 25 days for the non-custodial parent’s (NCP’s) present spouse to file a claim with CSS to receive his/her share of the state tax refund before it is applied to the NCP’s debt(s).
b. The “hold State tax exception” transaction hold is entered when the NCP identified on a state tax intercept payment does not match an ORSIS participant (e.g., participant’s last name or SSN does not match). ORSIS also enters the information on a State Tax Exception Report that is forwarded to accounting.
3. During the 30 days that the transaction is held, an overpayment worker will determine the debts that were referred for State tax intercept.
If the State tax refund posting exceeds the balance owed on all of the NCP’s cases which qualify for State tax refund intercept, it will appear on your “Funds Remaining” report.