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Administration for Children and Families US Department of Health and Human Services
The Office of Child Support Enforcement Giving Hope and Support to America's Children
[Code of Federal Regulations]
[Title 45, Volume 2, Parts 200 to 499]
[Revised as of October 1, 1998]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR303.102]
[Page 169-170]

TITLE 45--PUBLIC WELFARE AND HUMAN SERVICES

PART 303--STANDARDS FOR PROGRAM OPERATIONS

Sec. 303.102 Collection of overdue support by State income tax refund offset.

     (a) Overdue support qualifying for offset. Overdue support qualifies for State income tax refund offset if:

     (1) There has been an assignment of the support obligation under Sec. 232.11 of this title or section 471(a)(17) of the Act or the IV-D agency is providing services under Sec. 302.33 of this chapter, and

     (2) The State does not determine, using guidelines it must develop which are generally available to the public, that the case is inappropriate for application of this procedure.

     (b) Accuracy of amounts referred for offset. The IV-D agency must establish procedures to ensure that:

     (1) Amounts referred for offset have been verified and are accurate; and

     (2) The appropriate State office or agency is notified of any significant reductions in (including an elimination of) an amount referred for collection by State income tax refund offset.

     (c) Notice to custodial parent. The IV-D agency must inform individuals receiving services under Sec. 302.33 of this chapter, in advance:

     (1) That, for cases in which medical support rights have been assigned under 42 CFR 433.146, and amounts are collected which represent specific dollar amounts designated in the support order for medical purposes, amounts offset will be distributed under Sec. 302.51(e) of this chapter; and

     (2) If amounts offset will be applied first to satisfy any past-due support which has been assigned to the State under Sec. 232.11 of this title or section 471(a)(17) of the Act.

     (d) Advance notice to absent parent. The State must send a written advance notice to inform the absent parent of the referral for State income tax refund offset and of the opportunity to contest the referral.

     (e) Procedures for contesting offset and for reimbursing excess amounts offset. (1) The State must establish procedures, which are in full compliance with the State's procedural due process requirements, for an absent parent to use to contest the referral of overdue support for State income tax refund offset.

     (2) If the offset amount is found to be in error or to exceed the amount of overdue support, the State IV-D agency must take steps to refund the excess amount in accordance with procedures that include a mechanism for promptly reimbursing the absent parent.

     (3) The State must establish procedures for ensuring that in the event of a joint return, the absent parent's spouse can apply for a share of the refund, if appropriate, in accordance with State law.

     (f) Fee for certain cases. The State IV-D agency may charge an individual who is receiving services under Sec. 302.33(a)(1) (i) or (iii) of this chapter a reasonable fee to cover the cost of collecting past-due support using State tax refund offset. The State must inform the individual in advance of the amount of any fee charged.

     (g) Distribution of collections. (1) A State must distribute collections received as a result of State income tax refund offset: (i) For an AFDC case, under Sec. 302.51 (b) (4) and (5) and (e) of this chapter;

     (ii) For a foster care maintenance case, under Sec. 302.52(b) (3) and (4) of this chapter; and

     (iii) For a non-AFDC case, except as specified in paragraph (g)(1)(iv) of this section, by paying offset amounts to the family first or using them first to reimburse the State, depending on the State's method for distributing arrearage collections in non-AFDC cases.

     (iv) For cases in which medical support rights have been assigned under 42 CFR 433.146, and amounts are collected which represent specific dollar amounts designated in the support order for medical purposes, under Sec. 302.51(e) of this chapter.

     (2) If the amount collected is in excess of the amounts required to be distributed under paragraph (g)(1) of this section, the IV-D agency must repay the excess to the absent parent whose State income tax refund was offset within a reasonable period in accordance with State law.

     (3) The State must credit amounts offset on individual payment records.

     (h) Information to the IV-D agency. The State agency responsible for processing the State tax refund offset must notify the State IV-D agency of the absent parent's home address and social security number or numbers. The State IV-D agency must provide this information to any other State involved in enforcing the support order.

(Approved by the Office of Management and Budget under control number 0960-0385)

[50 FR 19655, May 9, 1985; 50 FR 31720, Aug. 6, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 54 FR 32312, Aug. 4, 1989; 56 FR 8005, Feb. 26, 1991]