dcl9757.htm

Federal Tax Refund and Administrative Offset

SEPT 24, 1997 DC-97-57

MESSAGE TO ALL STATE IV-D DIRECTORS

Re: Additional Instructions for Federal Tax Refund and Administrative Offset

Dear Colleague:

Submitting and Updating Cases:

This is a follow-up to Dear Colleague letter 97-55 in which OCSE indicated that Financial Management Services (FMS) will not be able to accept cases for Federal Tax Refund offset for processing year (PY) 1998. IRS will continue to process cases for Federal Tax Refund offset for another year and, if the State chooses, FMS will process cases for Administrative offset. Because of this, OCSE will continue to use the Federal tax refund offset tape specifications for submitting and updating cases during PY 98. States should continue to use the current tape specifications for both submitting and updating cases. This changes the updating procedures outlined in DC-97-45, dated August 8, 1997. No tape specification changes are required for PY 98. Once cases are submitted to IRS and/or FMS PY98, there will be no capability to add new cases or increase arrears.

Passport Denial

All cases that have arrears exceeding $5,000 will be forwarded to the State Department for passport denial. Because we will continue to use the current tape specifications in PY 98, there is no mechanism in place to systemically exclude cases for passport denial. This means that for the upcoming year cases will have to be manually excluded using the "Notice of Withdrawal of Passport Denial" enclosed in DC-97-45. If there is an obligor you wish to exclude from passport denial, you should complete the Notice of Withdrawal form, fax a copy to OCSE at (202) 401-5553, and provide a copy to the obligor. The obligor should be instructed to take the form to the local passport office. OCSE will continue to work with the State Department to explore the possibility of automating this procedure for future years and will notify you of any changes.

Conference Call

OCSE will host two conference calls next week to discuss submitting procedures and issues with the States. The calls will be on Tuesday, September, 30th and Wednesday, October, 1st. Both calls will be from 2:00 to 3:30 EST, however, the telephone lines will open at 1:45 for both calls. It is very important to begin calling in at 1:45. For those participating on Tuesday, pleasecall 1-800-545-4387 and give the operator the conference identification number M29627. For those participating on Wednesday, please call 1-800-545-4387 and give the operator the conference identification number M58269.

To ensure that OCSE can accommodate all states, please call Roy Nix at (202) 401-5685 to indicate participation and which day you wish to participate.

If you have any questions, please call OCSE's Special Collections Unit at (202) 401-9390.

Sincerely,

David Gray Ross

Deputy Director

Office of Child Support

Enforcement

cc: Tax Refund Offset Coordinators

Regional Administrators

Program Managers