FEDERAL TAX INTERCEPT

CS 674P Federal Tax Review

10/15/86 Revised 04/28/05 Training Completed 05/12/05

45 CFR 303.72

 

 

Federal regulations found at 45 CFR 303.72 state that the non-custodial parent (NCP) may request a Federal tax review to contest the amount of past-due child support certified for Federal tax refund intercept.  The NCP may also contest that s/he does not owe the past-due support that is certified.  The NCP may request a Federal tax review at the time the Annual Notice of Past Due Child Support notice is sent to the NCP, or after the Internal Revenue Service (IRS) notifies the NCP that his/her Federal tax refund has been intercepted. 

 

If the Office of Recovery Services/Child Support Services (ORS/CSS) certifies a NCP’s case for Federal tax refund intercept and the child support order was issued in another state, the NCP may request the administrative review be conducted by CSS or by the State that issued the order.  Likewise, if another State certifies a NCP’s case for Federal tax refund intercept and the child support order was issued in Utah, the NCP may request the Federal tax review be conducted by CSS.  See the “Interstate Administrative Review” section below.

 

45 CFR 303.72 also requires that the NCP and Non-IV-A custodial parent (CP) be notified of the time and place of the review.

 

 

Request for Federal Tax Review

 

The Annual Notice of Past-due Child Support notice informs the NCP that his/her past-due support will be certified for Federal tax refund intercept. The annual notice informs the NCP that s/he may request a Federal tax review by completing the Written Request for Review form that is included with the notice. 

 

The NCP may also send a letter to the certifying state at any time requesting a Federal tax review if s/he contests the amount that was certified for Federal tax refund intercept, or if s/he believes the certified amount is not owed.  If the complaint cannot be resolved by the certifying state, the NCP may request a review with the state that issued the order.

 

 

Procedures – Utah Conducts Federal Tax Review

 

A NCP must receive a Federal tax review in Utah when CSS certified the case for Federal tax refund intercept and the NCP requests the review be conducted by CSS.  If you are responsible for conducting a Federal tax review, follow the steps listed below when a NCP requests that Utah conduct the review.

 

1.                   Record the request on ORSIS.

                                                                                                                       

2.                   Conduct the UAPA review. 

 

3.                   Update ORSIS:

a.                   No adjustment to ORSIS is necessary if the review determines that the past due amount is correct.

b.                  Adjust the debt(s) if the review determines that the NCP owes past-due support, but the balance is incorrect.  ORSIS will change the tax certification.

c.                   If the review determines that the debts were certified for Federal tax refund intercept in error, manually delete the debt(s) from the Federal tax refund intercept certification.

d.                  If the administrative review determines that the certification for Federal tax refund intercept is invalid AND the NCP’s Federal tax refund has been intercepted, delete the certification; and promptly request a refund to the NCP or an advance refund if the Federal tax refund intercept payment has not posted. 

 

4.                   Code ORSIS when the Federal tax review has been completed.

 

                                                                                                                                        

Procedures – Other State Conducts Federal Tax Review

 

If the support order was issued in a state other than the state that certified the case for federal tax intercept, the NCP may ask that state to conduct the review.  The NCP may request the state that certified his/her arrears for Federal tax refund intercept to conduct the review, or the NCP may request the state that issued the support order on which the certification is based to conduct the review.

 

 

CSS Certified the Debt, Another State Issued the Support Order:

 

If the NCP requests the State that issued the support order to conduct the Federal tax review, you must forward the request to the issuing State within ten (10) days of receiving the request.  Follow the steps below.

 

1.                   Determine which case is in dispute.  If the NCP has more than one IV-D case, determine the specific case or cases the NCP is contesting.

 

2.                   Confirm the contested amount.

 

3.                   Code ORSIS when an administrative review has been requested.

 

4.                   Compile the state’s evidence:  Gather the facts and evidence from the CSS case record.

 

5.                   Forward the request for review:  Within 10 days of the date the review is requested, forward the following to the Central Registry (CRU) in the State that issued the support order.

 

6.                   Inform OCSE of transfer: Federal regulations require that the Office of Child Support Enforcement (OCSE) be notified when a Federal tax review is transferred to another State. 

 

7.                   The issuing order State conducts the administrative review and issues a decision.  Federal regulations require the issuing order state to conduct the review and issue a decision within 45 days of receiving the request from CSS.  CSS is bound by the decision made by the issuing state.

If the state conducting the review finds that an arrears amount that has already been intercepted, but not yet received, and it was certified in error, you must promptly issue an advance refund to the NCP. 

 

8.                   Code ORSIS to show the Federal tax review has been completed.

 

 

Another State certified the debt, Utah issued the support order:

 

When another state certifies its case for Federal tax refund intercept, the NCP may request CSS to conduct an administrative review if his/her support order was issued in Utah.  The certifying state will send a letter requesting the Federal tax review, or may use the Child Support Enforcement Transmittal #1 - Initial Request form.  Follow the steps below if you receive a request for Federal tax review from another state.

 

1.                   Review the request.  If the request for review is routed to an agent or a team, send the request immediately to the appropriate Regional Quality Assurance Specialist (QA).

 

2.                   QA gathers evidence.

a.                   Send the Tax Review, Request Evidence letter to the NCP.  The NCP must provide written evidence to support his/her claim.  The letter informs the NCP of the date the review will take place.  The NCP is not asked to appear for the review but to submit his/her evidence prior to the date of the review; and,

b.                  Send the Obligee Notice of Adjudicative Proceeding form to the requesting state and to the CP, if the CP’s address was included in the request documentation.

 

3.                   QA conducts the review within 45 days.

a.                   The QA considers all the facts and evidence and issues a decision within 45 days of receiving the request for review.  The decision must be based upon the accuracy of the arrears and whether it qualifies for Federal tax certification; and,

b.                  The QA creates and sends a letter to the NCP, the initiating state, and the CP, if the CP’s address was included in the request for review, to explain the findings of the review and the decision.