FEDERAL TAX INTERCEPT
11/04/05 Training Completed
Prior to the fall of 1998, cases that met the certification criteria for Federal tax intercept were referred annually by the Office of Recovery Services/Child Support Services (ORS/CSS) to the Federal Office of Child Support Enforcement (OCSE) to match against the Internal Revenue Service’s (IRS) records in order to collect past due support by Federal tax refund intercept.
After the 1998 certification, the Department of the Treasury made changes to the Federal tax refund intercept program. As a result, CSS no longer certifies cases for Federal tax intercept annually. Instead, the ORS computer system (ORSIS) automatically sends new or updated information to OCSE every week (on Friday) to notify the Department of the Treasury Financial Management Service’s (FMS) of changes to Utah’s certified cases. The update includes new non-custodial parents (NCP) and/or cases to be certified, changes to the amounts already certified, and NCPs and/or cases to be deleted.
NOTE: The cases referred in 1998 remain certified as long as the criteria continue to be met.
New Certification Update
ORSIS sends information for cases or debts to be certified that include the following:
1. new NCPs and cases/debts that meet the certification criteria; and
2. NCPs and/or cases that were previously deleted from the certification that now meet the criteria.
New certification update information is sent to FMS 35 days after the date the “Annual Notice of Past-Due Child Support” is sent to the NCP.
ORSIS automatically sends information to update or change the NCP’s certification amount when:
1. the NCP’s certified arrears debt balance increases or decreases.
2. the NCP has a new debt or case that meets the certification criteria.
ORSIS automatically sends update information to delete the Federal tax refund certification of one or all of the NCP’s debts when the conditions listed below are met.
1. A certified debt is deleted when the debt balance is reduced to zero because payments have been applied to the debt or because a worker manually adjusts the debt balance to zero.
2. All certified debts on a case are deleted when the case is closed on ORSIS.
3. A certified debt is deleted when a worker enters a “N” (no - do not include this debt) in the federal tax intercept field.
4. All certified debts on a case are deleted when a good cause referral is received from PACMIS.
5. All certified debts on a case are deleted when the AUTO ENFORCE indicator is “N” (no).
6. A NCP and all of his/her cases are deleted when his/her Social Security number (SSN) is changed. ORSIS automatically deletes the certification for the incorrect SSN and certifies the NCP using the new SSN.
7. A NCP and all of the NCP’s cases are deleted when a worker enters a bankruptcy status of plan filed or plan confirmed.
8. The NCP is deleted from Federal tax intercept when all of his/her debts/cases no longer meet the certification criteria.
You must delete the debt from the certification when:
1. a Federal tax review determines the case should not have been certified for Federal tax refund intercept.
2. an order is entered that prohibits CSS from collecting through Federal tax refund intercept.
ORSIS notifies OCSE when:
1. a referral is sent to the state or county that issued the order if the NCP has requested an administrative review, or
2. CSS refunds all or part of the Federal tax refund intercept payment to the NCP. The IRS considers these refunds when determining an unobligated spouse’s portion of a Federal tax refund.
3. the NCP’s last name is changed.