FEDERAL TAX INTERCEPT
05/15/87
Revised 08/24/23 Training Completed 09/07/23 Last Reviewed 08/04/25
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 Services (OCSS) 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 OCSS 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
noncustodial parents (NCP) and/or cases to be certified, changes to the amounts
already certified, and NCPs and/or cases to be deleted. See CS 670P Federal Tax
Intercept – Criteria for the certification criteria.
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.
Modified or
Changed Certification Update Information
ORSIS automatically sends information to update or change the
NCP’s certification amount for Federal tax refund intercept 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.
Automatic
Delete Certification Update Information
ORSIS automatically sends update information to delete the Federal
tax refund intercept 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 types an “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.
An
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.
An
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.
Delete 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. (See CS 674P Federal Tax Review for
more information); or,
2.
An order is entered that prohibits CSS from collecting through
Federal tax refund intercept.
ORSIS notifies OCSS when:
1.
A referral is sent to the state or county that issued the order if
the NCP has requested an administrative review. See CS 674P
Federal Tax Review for instructions on notifying OCSS when a Federal tax review
is requested; 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.