FEDERAL TAX INTERCEPT

CS 673P Federal Tax Intercept – Intergovernmental cases

10/15/86 Revised 02/21/17 Training Completed 03/07/17 Last Reviewed 08/04/26

45 CFR 303.72

 

 

Outgoing Intergovernmental Cases – Utah Initiating Agency

 

Notification of Intercept and Adjustment – Federal regulations found at 45 CFR 303.72 require the Office of Recovery Services/Child Support Services (ORS/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 intergovernmental case, ORSIS automatically generates a “Tax: Notice of IRS Intercept to Resp State” cover letter and the Federal Tax Intercept Interstate Report.  The cover letter and Federal Tax Intercept Interstate Report are mailed to the Central Registry Unit of the state that is enforcing the support order.  When the responding state is CSENet (Child Support Enforcement Network) 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:

 

·                     The noncustodial parent’s (NCP) name and social security number (SSN);

·                     Whether a collection was received or an adjustment made;

·                     Amount of the IV-A intercept or non-IV-A intercept;

·                     Amount of the IRS adjustment;

·                     Intergovernmental 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 Intergovernmental Cases – Utah Responding State

 

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