FEDERAL TAX
INTERCEPT
10/15/86 Revised 06/18/24
Training Completed 07/01/24 Last Reviewed 08/04/25
Federal regulations
found at 45 CFR 303.72 state that the noncustodial 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. See CS 671P Federal Tax
Intercept – Notice of Offset for more information.
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.
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 if his/her concerns cannot be resolved first with the certifying state.
The NCP may request the state that certified his/her arrears for Federal tax
refund intercept to conduct the review first. If the NCP complaint is not resolved, s/he
may next 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 OCSS of transfer: Federal regulations require that
the Office of Child Support Services (OCSS) 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.