FEDERAL TAX INTERCEPT

CS 673P Federal Tax Intercept - Interstate cases

10/15/86 Revised 04/15/03

45 CFR 303.72

 

Outgoing Interstate CasesUtah Initiating State

 

Notification of Certification:

 

Federal regulations found at 45 CFR 303.72 requires the Office of Recovery Services/Child Support Services (ORS/CSS) to notify the State that is enforcing the support order when a case is certified for Federal income tax intercept.  At the time a case is certified, ORSIS sends a “Notice of Certified Cases to Responding State” letter to the responding jurisdiction.

 

A report of all the cases certified by Utah and referred to the responding jurisdiction is attached to the notice.  The report lists the following information:

 

·        non-custodial parent’s (NCP) name;

·        NCP’s Social Security number;

·        amount certified for IV-A intercept;

·        amount certified for Non-IV-A intercept;

·        interstate case number;

·        CSS team number associated with the case;

·        CSS case number;

·        case status; and,

·        debt group.

 

Notification of Intercept and Adjustment:

 

Federal regulations found at 45 CFR 303.72 require CSS to notify the State that is enforcing the support order when the NCP’s Federal tax refund is received on a CSS case.  When a Federal tax refund is posted to a CSS outgoing interstate case, ORSIS automatically generates a “Notice of IRS Intercept to Responding State” cover letter and the “Federal Tax Intercept Interstate Report.”  The cover letter and Federal Tax Intercept Interstate report is mailed to the Central Registry of the State that is enforcing the support order.  When the responding State is CSENet active, the collection information is sent to the state via a CSENet transaction.  ORSIS also generates the cover letter and “Federal Tax Intercept Interstate Report” when the IRS takes back all or part of the Federal tax refund payment.  This information allows the responding state to adjust the accounting records on its case.

 

The Federal Tax Intercept Interstate Report lists the following information:

 

·        NCP’s name and SSN;

·        whether a collection was received or an adjustment made;

·        amount of IV-A intercept or non-IV-A intercept;

·        amount of the IRS adjustment;

·        interstate case number;

·        CSS team number associated with the case;

·        CSS case number;

·        case status; and,

·        debt group.

 

You must notify the responding jurisdiction if you issue a refund of Federal tax refund intercept payments to the NCP after the payment has distributed to a debt.  You do not need to notify the responding jurisdiction when you issue a refund if the Federal tax refund intercept payment has not distributed. 

 

Incoming Interstate CasesUtah Responding State

 

CSS does not certify incoming interstate cases for Federal tax refund intercept.  The initiating State should certify its own cases if the Federal tax intercept criteria are met and the initiating state notify CSS if/when it receives a Federal tax intercept on their case.  If you are notified of a tax intercept received on an incoming case, adjust the CSS debt(s) accordingly.