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Collection of Child Support through Federal Income Tax Refund Offset, Administrative Offset, and Passport Denial

AT-98-17

Published: July 6, 1998
Information About:
Other Public Partners, State/Local Child Support Agencies
Topics:
Case Management, Enforcement, Federal Systems, Federal Offset Program (FOP), Financial Institution Data Match, Passport Denial
Types:
Policy, Action Transmittals (AT)
Tags:
Collection & Enforcement Systems, Financial Management Service (FMS), Internal Revenue Service (IRS)

(This document is referenced by Dear Colleague Letter: DCL-98-63

ACTION TRANSMITTAL OCSE-AT-98-17

DATE: July 6, 1998

TO: State agencies administering child support enforcemetn plans approved under Title IV-D of the Social Security Act and other interested individuals.

SUBJECT: Collection of child support by the U.S. Department of Treasury's Financial Management Service (FMS) through offsetting Federal income tax refunds and other Federal payments through administrative offset. Enforcement of delinquent child support obligations through the denial, revocation, or restriction of U.S. passports by the Secretary of State.

ATTACHMENTS: Instructions for submitting requests for collection of child support debts by FMS through the Federal income tax refund and administrative offset processes. Instructions for certifying delinquent child support obligors for passport denial, revocation or restriction.

BACKGROUND: In 1981, the Federal income tax refund offset program was enacted into law (see section 2331, P.L. 97-35). Initially, this program was restricted to public assistance cases and enforced delinquent child support obligations by intercepting part or all of the obligor's Federal income tax refund. This program was expanded in 1984 to allow for its use in nonassistance cases.

The Debt Collection Improvement Act (DCIA) of 1996, Public Law 104-134, was enacted into law on April 26, 1996. The primary purpose of the DCIA is to increase the collection of nontax debt owed to the Federal Government. However, the DCIA also contains important provisions for use in the collection of past-due child support obligations.

The DCIA was further strengthened by Executive Order 13019 - Support Families: Collecting Delinquent Child Support Obligations. This ordered the Secretary of Treasury, in consultation with the Secretary of Health and Human Services, to develop and implement procedures necessary to collect child support debts by administrative offset.

Section 370 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193), amended the Social Security Act (Act) by adding subsection 452(k). This subsection became effective October 1, 1997 and establishes the denial, revocation or restriction of U.S. passports remedy. Under this remedy, an individual who owes delinquent child support in an amount exceeding $5,000 may be certified by OCSE to the Secretary of State. Upon receiving such a certification, the Secretary of State shall refuse to issue a U.S. passport to such an individual, or may revoke, restrict or limit a passport previously issued to such an individual.

This Action Transmittal applies to those cases in which the State has an assignment of support rights under section 408(a)(3) or 471(a)(17) of the Act, or cases in which the State is enforcing the support obligation pursuant to section 454(6) of the Act, or the State has an assignment of medical support rights under section 1912(a)(1)(A) of the Act.

SUPERSEDED MATERIAL: During 1981, 1982, 1983, 1984, 1985, 1986, 1987, 1988, 1989, 1990, 1991, 1992, 1994 and 1996 the Office of Child Support Enforcement (OCSE) issued instructions to define the procedures States must use for the preparation, submission, and processing of cases for collection by offsetting past-due child support obligations with Federal income tax refunds (OCSE AT-81-19, 81-29, 82-14, 83-14, 84-05, 85-07, 86-15, 87-6, 88-12, 89-13, 90-06, 91-05, 92-03, and 96-05). This Action Transmittal supersedes these documents and outlines the revised procedures for the submission and processing of cases for the Federal income tax refund and administrative offset programs, and the U.S. passport remedy.

INQUIRIES TO: OCSE Special Collections Unit, (202) 401-9389

______________________________

David Gray Ross
Commissioner
Office of Child Support Enforcement

 


 

TABLE OF CONTENTS

 

 

I. Overview 6
   A. Federal Income Tax Refund Offset Program 6
   B. Administrative Offset Program 7
   C. Federal Passport Denial, Revocation or Restriction Program 7
   D. Processing Year (PY) 1999 Summary 8
II. Submitting Certified Requests 9
   A. Eligible Cases 9
        1. Tax Refund Offset Program 9
        2. Administrative Offset Program 10
        3. U.S. Passport Remedy 11
   B. Criteria For Submittal - Overview 12
        1. Tax Refund Offset Program 13
        2. Administrative Offset Program 14
        3. U.S. Passport Remedy 14
   C. Administrative Offset Program Fees 15
   D. Bankruptcy 15
   E. Submitting Interstate Cases 15
   F. Interstate Transmittal Form 16
   G. Case Submittals 17
   H. Edit Validation 19
   I. Submission Date 19
   J. Submitting Test Cases to OCSE 19
III. Pre-Offset Notice and Complaint Procedures 21
   A. Pre-Offset Notice 21
   B. Complaint Procedures 23
        1. Intrastate Contests 24
        2. Interstate Contests 24
        3. Guidelines for SSN Error Problems 26
IV. Updates To Case Submissions 27
   A. Deletions and Modifications 27
   B. Update Reporting By Transfer State 29
   C. State Payments (Refunds) 29
V. Processing Offsets 31
   A. Offset Processing By FMS 31
   B. Processing Monies That Have Been Offset 32
   C. Distribution of Collections From Offsets 33
   D. Processing Offsets For Cases Submitted By Two or More States 34
   E. Adjustments To Collections 34
   F. Delay in Refunds 35
VI. FMS Service Fee Statement and Adjustment Billing 36
VII. Inquiries to OCSE 36
VIII. Inquiries to States 36
IX. Reporting 36
X. Security and Safeguarding Requirements 36
XI. Quality Control 37
XII. Data Transmission Methods 37
Schedule For 1999 Processing Year 39
Narrative Description of Major Reports 42
Exhibit Directory 44
Exhibits 46
 

NOTE:  These page numbers reflect the actual page numbers related to the hard copy document.  The page numbering of printed copies from the Internet will vary.

 


 

I. OVERVIEW

 

Beginning in January 1999, the operations of the Federal income tax refund offset program will be transferred from the Internal Revenue Service (IRS) to Treasury's Financial Management Services (FMS) and merged with the administrative offset program. When this happens, Federal income tax refunds will become one of several federal payments eligible for offset. Other federal payments that may be administratively offset include vendor/miscellaneous, federal salary, and federal retirement. The state will have the flexibility of determining, on a case-by-case basis, which payments to subject to offset as this action transmittal will further explain.

States will continue to refer debts to OCSE for collection of past-due support through the offset of both Federal income tax refunds and other federal payments through administrative offset.

States are required to submit all cases that meet the criteria for Federal income tax refund offset to OCSE for collection through the offset program. The administrative offset of other federal payments however, will remain optional. Under the procedures set forth in this AT, OCSE will report these debts to treasury for the appropriate offset purposes.

A. Federal Income Tax Refund Offset Program

On August 13, 1981 the Federal Income Tax Refund Offset Program (tax offset) was enacted by Congress (see P.L. 97-35, section 2331). This unique use of a Federal collections mechanism to recover delinquent child support debts involves the interaction of all State IV-D agencies and three Federal agencies (OCSE, FMS and IRS). This cooperative effort has resulted in total collections of over $7.7 billion since the program began. As of May 1997, over 12 million tax refunds have been intercepted since the program started offsetting refunds in 1982.

At its inception in 1982, this program was restricted to child support debts owed in AFDC cases. However, as a result of the Child Support Amendments of 1984 (P.L. 98-378), it was expanded to include child support debts in nonassistance cases. The Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508) further expanded the tax offset program for non-AFDC cases. Section 5011(b) of this law authorizes the use of this program in non-TANF cases for the collection of past-due spousal support when the parent is living with the child and spousal support and child support are included in the same order. In addition, cases may be submitted where there is past-due support due on behalf of adult disabled children for whom there is a support order in effect. These changes took effect January 1, 1991.

B. Administrative Offset Program

The Debt Collection Improvement Act (DCIA) of 1996, Public Law 104-134, was enacted into law on April 26, 1996. The DCIA contains important provisions to assist in the collection of past-due child support obligations. The Act allows for administrative offsets of certain Federal payments, in addition to consolidating all debt collections, including tax offsets, within the Department of Treasury's Financial Management Service (FMS). Executive Order 13019 directs the Department of Treasury, in consultation with the Department of Health and Human Services (HHS), to develop and implement procedures to collect delinquent child support by administrative offset. All payments that are eligible for offset under the DCIA, other than Federal tax refunds, are categorized as "administrative" offsets. (See DCIA of 1996, P.L. 104-134 for complete listing.) In addition, this Executive Order directs HHS to implement procedures to report to the Department of Treasury information on past-due child support claims referred by the States to HHS.

FMS and OCSE agreed to implement E.O. 13019 in a phased-in approach, with the initial implementation for States that opted to participate in the administrative offset program, using the file created in 1997, for Federal income tax refund offset purposes, for Processing Year (PY) 1998. This phased-in approach will continue by using the file created in 1998 for PY 1999, certified with any updates and collectively processed against the 1999 certified file. Additional records will be added on a state-by-state basis as States elect to participate. These two programs will be combined effective January 1, 1999, and at that time, the States may submit new cases as well as increases and decreases to their records on a recurrent basis. Participation in the administrative offset program will remain optional even after the programs are combined.

C. Federal Passport Denial, Revocation or Restriction Program

One of the new child support enforcement remedies contained in the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, P.L. 104-193, is the passport denial provision. This new provision appears at section 370 of PRWORA, and adds a new subsection, 452(k), to the Social Security Act (Act). Subsection 452(k) of the Act requires the Secretary of State to refuse to issue a passport to any person certified by the Secretary of HHS as owing a child support arrearage in an amount greater than $5,000. Further, the Secretary of State may take action to revoke, restrict or limit a passport previously issued to an individual owing such a child support arrearage. Currently, the State Department is only denying passports at the time of application when the child support debt exceeds $5,000. OCSE is working with the State Department on expanding the program to include revocation and/or restriction. We will keep you advised of our progress.

Section 370 of PRWORA includes a conforming amendment to the Act under which this remedy also appears at section 454(31) of the Act, making it a IV-D State plan requirement. All States are required to enact procedures to certify to OCSE individuals who owe delinquent child support in an amount exceeding $5,000. The States are required to afford such individuals notice of, and an opportunity to contest, the delinquency determination.

D. Financial Institution Matches

Section 466(a)(17) of the Act requires States to enact laws enabling IV-D agencies to conduct financial institution data matches on a quarterly basis.

The "Child Support Performance and Incentive Act of 1998", H.R.3130, grants OCSE the authority to act as a conduit (sends, receives, distributes) for the data match process between States and multistate financial institutions.

E. Processing Year (PY) 1999 Summary

Many changes to the Federal income tax refund offset program will occur in PY 1999. The most notable being the implementation of the two additional collection remedies discussed above, administrative offset and the U.S. passport remedy. To assist the States in their transition to the PY 1999 procedures, OCSE has attempted to make the certification process for each remedy as uniform as possible, while noting the differing eligibility criteria. What OCSE is announcing in this Action Transmittal is the establishment of a single reporting scheme under which debts can be certified in the same transaction for all three of these collection remedies. In addition, OCSE has attempted to retain the previous IRS income tax refund offset reporting/certification procedures to the maximum extent possible for this single reporting scheme.

 


 

II. SUBMITTING CERTIFIED REQUESTS

 

A. Eligible Cases

1. Federal Income Tax Refund Offset Program

Only IV-D cases are eligible for Federal income tax refund offset. In other words, only cases in which the State has an assignment of support rights under section 408(a)(3) or 471(a)(17) of the Act, or cases in which the State is enforcing the support obligation pursuant to section 454(4)(A)(ii) of the Act, or the State has an assignment of medical support rights under section 1912(a)(1)(A) of the Act, can be submitted for tax offset. All States must have and use procedures for tax offset in non-TANF as well as TANF and foster care cases. Under 45 CFR 303.72, which became effective in October 1990, all IV-D cases which meet the criteria for submittal must be submitted for tax offset.

A custodial parent who has applied for IV-D services (and paid the application fee, if any) may be charged an additional fee, not to exceed $25, for the Federal income tax refund offset remedy. Some States which recover costs of services directly from the custodial parent, pursuant to 45 CFR 302.33(d)(ii), deduct this fee from the tax refund when it is intercepted. It is not necessary to obtain the consent of the non-TANF custodial parent before submitting the case. Custodial parents seeking offset services should be advised that their application for IV-D services will necessitate other enforcement actions by the IV-D agency.

To assist IV-D agencies in collecting sufficient background information and properly informing applicants for IV-D services of the tax offset and administrative offset programs, OCSE has developed a non-TANF Federal Income Tax Refund and Administrative Offset Information form (see EXHIBIT T). Whether or not this form is used, for the Federal income tax refund offset remedy, the IV-D agency should ensure that applicants for non-TANF services understand:

149 What the applicant must pay for the Federal tax refund offset;
149 How long it may be before an offset is disbursed (including the possibility of a 6-month delay in joint-return cases);
149 That any State submitting an assigned (TANF) arrearage for tax offset must receive its share of the offset before FMS is permitted to offset an unassigned (non-TANF) arrearage; and
149 That any payment the family receives may have to be returned to the IV-D agency if there is an adjustment made by IRS within 6 years following the end of the tax year. (The Tax Reform Act of 1986 extended the Injured Spouse Claim and Allocation Form 8379 filing period from 3 years to 6 years.)

In addition, the custodial parent in all offset cases, may be required to sign an affidavit attesting to the amount of the child support arrears if the agency cannot verify the amount owed using its records.

2. Administrative Offset Program

Currently all case types that are eligible for Federal income tax refund offset are eligible for administrative offset.

The following types of payments are available for administrative offset. They include both recurring and nonrecurring payments. Recurring payments are payments that are issued on a regular, routine, or repeated basis. A nonrecurring payment is issued once and not expected to be repeated, such as a lump-sum retirement payment.

The Federal payments currently included in administrative offset are: Federal retirement payments, vendor and miscellaneous payments (i.e., expense reimbursement payments and travel payments). Other payments such as Federal salary payments may be added. OCSE will notify you if and when this happens.

Payments which are excluded from the administrative offset program are:

149 Benefit payments from the Department of Veterans Affairs;
149 Payments made by the Department of Education under Title IV of the Higher Education Act;
149 Social Security payments;
149 Railroad Retirement payments;
149 Payments made under Part B of the Black Lung Benefits Act;
149 Payments under means-tested programs that, upon request, are exempted by the head of the Federal agency which administers the program;
149 Any type of payment, upon the written request of the head of the agency which authorizes the payments, if the offset would tend to interfere substantially with, or defeat the purposes of, the payment agency's program;
149 Payments made under the Internal Revenue Code of 1986 (except Tax Refund payments that are subject to administrative offset under separate authority); and
149 Payments made under the tariff laws of the United States.

3. U.S. Passport Remedy

As is the case with the Federal income tax refund/administrative offset program, all IV-D cases (assistance and nonassistance cases) are eligible for the U.S. Passport remedy. This remedy appears in the Act at 454(31) and is a State Plan requirement. Accordingly, all States must have and use procedures to certify to OCSE individuals who owe delinquent child support in an amount exceeding $5,000. All cases eligible pursuant to State procedures must be certified to OCSE in the tax offset format (see Exhibit N). Currently, only the denial of passports is operational. In the future, valid U.S. passports may be subject to revocation and/or restriction. OCSE will keep you advised of any expansion of this remedy. Under this single certification process, States have case control and the flexibility to indicate on their Input File Specifications, (Exhibit N) which remedy is being requested. The tax offset remedy and the denial of U.S. passports remedy are mandatory for each IV-D case meeting the specific eligibility requirements, but the administrative offset program is optional. Cases submitted for tax or administrative offset which are not considered eligible cases for the passport remedy under the State's procedures may be excluded on a case by case basis. (See EXHIBIT N)

The passport denial process works as follows: when a State submits a case to OCSE with arrears that exceed $5,000, or beginning in January 1999, the State submits an increase to an existing case that causes the arrears to exceed $5,000, OCSE automatically extracts the case and forwards it to the State Department for passport denial unless the "pas" exclusion indicator is in place. (See Exhibit N)

Upon receipt of the cases from OCSE, the State Department "flags" the obligors identified in the transmission. If any flag is in place, be it from OCSE or any other source, the individual is denied a passport at the time of application. When the obligor is denied because he/she has a child support debt exceeding $5,000, the individual is instructed to contact the State child support enforcement agency that certified the debt. (See Exhibit CC) only the State certifying the debt can remove or withdraw the obligor from the passport denial process. If more than one State certified the obligor, all involved States must withdraw him/her from the denial process before the passport can be issued.

In 1998, States should use the "notice of withdrawal of passport denial" form to remove the obligor from the denial process. (See Exhibit DD) The form should be completed on official letterhead and signed by an authorized individual. The form should be mailed or faxed to OCSE's Special Collections Unit. OCSE will forward the information to the State Department on an as needed basis, but at least weekly, for processing.

Beginning in 1999, States will use Exhibit N to submit and update cases and may use the exclusion indicator to exclude or remove individuals from the passport denial process. The States may also continue to use the form (Exhibit CC) for emergency cases. The turnaround from the time OCSE receives a request for removal to the actual time of the removal is about one week. This is because currently, the State Department only processes deletes on the weekend. OCSE is working with the State Department to improve the turnaround time and will keep you posted.

It is important for States to note that once an individual is removed from the denial process and receives his/her passport, the passport remains valid for 10 years. In other words, because there is currently no restriction or revocation mechanism(s) in place, it may be 10 years from the date that the obligor receives his/her passport until the time that he/she can be denied again. States are encouraged to carefully review cases and situations before withdrawing obligors from the denial process to ensure that no one is erroneously issued a passport.

States should also be reminded that under no circumstances should the obligor be referred to directly to OCSE's Special Collections Unit. As with the offset program, only the certifying State(s) can delete obligors from the passport denial process. Obligors calling the Special Collections Unit will be referred to the certifying State(s).

B. Criteria for Submittal - Overview

In an attempt to simplify the certification process for the States, OCSE has developed a single certification process which includes each of the three available remedies: Federal income tax refund offset; administrative offset; and the denial, revocation or restriction of U.S. passports.

1998 will be the last year States will be required to submit a new certified file. Beginning January 1, 1999 the current certified file can be modified upward or downward and new cases can be added on a continuing basis using the file specifications for updates and modifications (see Exhibit N.) The only requirement is that the State must issue a pre-offset notice (see Exhibit C) or have OCSE issue their pre-offset notices for all new cases. A new case is one that has not been previously submitted to the combined offset program, or a case that was deleted because the debt was satisfied but subsequent arrears accrued and the debt (case) is being certified for offset again, or a case where a new remedy is being sought for which a pre-offset notice has not been sent. In other words, if the balance on an existing case reaches zero the case is deleted and a "new" case must be submitted to collect on newly accrued arrears. If OCSE mails the notices, we will use the addresses we receive from the Internal Revenue Service (IRS) and will bill the State accordingly. If the State chooses to mail its own pre-offset notices, they must provide the obligor's address. If the State does not include this address, OCSE will attempt to obtain it from the IRS. The IRS has provided addresses for OCSE in the past and at this time will continue to do so after the merger of the offset programs. However, if OCSE is unsuccessful in obtaining addresses from IRS, FMS will reject the case because they must have an address to issue an offset notice. FMS will not process cases without addresses.

Whether or not States elect to participate in the administrative offset program in 1999, all States will have to submit a certified file just as they have in the past. This will be the last time, however, that states will submit their full caseload. As stated above, beginning January 1, 1999 the States' update file may include new cases and upward modifications in addition to deletes and downward modifications and any State may submit them on a continuing basis. Beginning January 1, 1999 all submissions must be transmitted using CONNECT:Direct (C:D).

The States must certify that the information on each noncustodial parent is accurate and that the State has afforded the noncustodial parent all the due process rights required by law.

Under the single reporting process we have developed, most of the eligibility criteria for these three programs is uniform. For example, the support obligation must have been established under a court order or an order of an administrative process established under State law. In TANF and title IV-E foster care cases, the obligation must have been assigned to the State pursuant to section 408(a)(3) or 471(a)(17) of the Act. In Medicaid-only cases, the support obligation must have been assigned to the State pursuant to section 1912(a)(1)(A) of the Act. For each of these remedies, past-due support may not include fees or court costs or any other non-child support debts owed to the State or to the family. Past-due support may include medical support, but only if a specific dollar amount is included in the order. Interest may be included in the amount certified only if it is considered "support" under State law.

For each of these remedies, the State IV-D agency must verify the accuracy of the arrears, have a copy of the order, including any modifications, and have a copy of the payment record or an affidavit signed by the custodial parent attesting to the amount of support owed. The State IV-D agency must verify the accuracy of the noncustodial parent's name and Social Security Number (SSN). The State IV-D agency must have the custodial parent's current address.

Certifications in TANF cases may include an amount for support and maintenance of a child, or of a child and the parent with whom the child is living. Spousal support is eligible for certification in non-TANF and Medicaid-only cases in which the parent is living with the child and spousal support and child support obligations are included in the same order. At State option, amounts certified in non-TANF cases may be limited to past-due support which accrued since the State IV-D agency began enforcing the support order. In non-TANF or Medicaid-only cases, the State must check its records to see if there are any former TANF or foster care arrearages.

Finally, when certifying an interstate case, the request may be made only by a State which has taken an assignment under section 408(a)(3), 471(a)(17) or 1912(a)(1)(A) of the Act.

The differences in the specific eligibility requirements for these three remedies are below.

1. Federal Income Tax Refund Offsets

In TANF or title IV-E foster care cases, the amount of past-due support must not be less than $150.00 and must have been delinquent for 3 months or longer. For PY 1999 the requirement in TANF and foster care cases that the past-due support must be at least 3 months in arrears is met if the past-due support is 3 months overdue as of January 1. Beginning January 1, 1999, if the States mail their own pre-offset notices they need to make sure that the debt is 3 months old before forwarding the case to OCSE. If OCSE mails the States' pre-offset notices, we will hold the case for the appropriate time before submitting it to FMS.

In non-TANF or Medicaid-only cases, the amount of past-due support must be at least $500.00. Non-TANF and Medicaid-only referrals on behalf of an individual who is no longer a minor (even if the arrearage accrued while the person was a minor child) may not be submitted for tax offset, except in cases in which past-due support is due on behalf of adult disabled children for whom there is a support order in effect and the child, while a minor, was determined to be disabled under Title II or XVI. In other words, the child must be a minor as of December 31 of the year in which that case is originally submitted to OCSE for tax offset and must have been determined to be disabled as of that date.

2. Administrative Offset

Under the Administrative Offset program, FMS will offset certain Federal payments for TANF and non-TANF certified cases. The differences between the eligibility requirements for administrative offset and those for the tax offset program include the age of the debt and minimum amount of the arrearage. Under the administrative offset program, a case is eligible for certification when the debt is at least $25 and 30 days past due. However, States have flexibility to determine a higher threshold.

Another difference in the eligibility criteria involves the minor child issue. Under the tax offset program, the child must be a minor as of December 31 of the year in which that case is submitted to OCSE for tax offset. There are no such restrictions in the administrative offset program. Therefore, as long as the debt is 30 days old and equal or greater than $25, the case is eligible for administrative offset. (See Exhibit N)

3. Denial, Revocation or Limitations of U.S. Passports

In order for a case to be eligible for the U.S. passport remedy, the child support delinquency must exceed $5,000. As is the case in the administrative offset program, the child does not need to be a minor as of December 31 of the year the case is certified to OCSE. OCSE will automatically extract eligible cases from those certified and forward them to the State Department for passport denial unless an exclusion indicator is used in Exhibit N.

In 1998 States should use the "Notice of Withdrawal of Passport Denial Form", Exhibit CC, to withdraw a case from the passport denial process. The form should be completed and faxed to OCSE's Special Collection's Unit at (202) 401-5553. Beginning in January 1999, States should use Exhibit N to exclude cases from the passport denial process. The withdrawal form, Exhibit CC, however, may still be used in 1999 in cases in which the time-frame to remove the case from the passport denial process is very short.

C. Offset Program Fees

The fees charged for each offset (tax and administrative) by FMS will be based on the costs of operating the program. The fee per offset for PY1999 has not yet been determined. OCSE is negotiating with FMS and will inform the States when the final fee is determined.

When a match occurs between the records of delinquent debtors and payment records for Federal payees, FMS will divert part or all of the funds from the delinquent obligor and transmit the offset amount to the appropriate creditor agency, less the administrative fee charged for processing the offset. If there are funds remaining after the offset, the remainder will be sent to the obligor. The delinquent debt in the database is automatically reduced by the amount of the offset. There will be an offset fee charged only when an offset is taken. The fee will be adjusted annually based on operating costs and on the number of anticipated offsets.

D. Bankruptcy

A State may not certify a case in which the noncustodial parent or his or her spouse has filed for bankruptcy under Chapters VII, XI, XII, or XIII of Title 11 of the United States Code unless the automatic stay under section 362 of the Bankruptcy Code has been lifted or is no longer in effect and the obligation was not discharged by the bankruptcy proceeding. If the State does submit a case in this category, FMS will not offset any refund if notified of the stay, or in the event of an offset, will reverse the offset.

E. Submitting Interstate Cases

The State submitting a certification of past-due support for enforcement must inform any other State involved in enforcing the support order when it submits an interstate case and when it receives an offset amount from FMS. If the debt submitted is based upon another State's support order, the submitting State must communicate with the other State for purposes of verification of arrears or, when necessary, to obtain a copy of the order or the payment record prior to submitting the certification.

In interstate cases, the State in which the public assistance assignment or nonassistance application for IV-D services has been filed (i.e., the initiating State), must submit the past-due support for Federal tax refund or administrative offset. It is necessary to specify which State must submit the past-due support debt for offset to avoid multiple States submitting the same arrearage.

If a State submits a case for Federal income tax refund or administrative offset on the basis of another State's child support order, the submitting State should comply with the other State's laws regarding offsets. Several States have been involved in litigation which has resulted in the imposition of specific safeguards to prevent the wrongful interception of taxpayers' refunds. These requirements for an expanded notice and hearing procedures may affect the enforcement of any child support order issued within the State. The Federal regulations at 45 CFR 303.72(g) provide for administrative review in either the submitting State or the State which issued the order (upon request by the taxpayer), and appear to have eliminated most problems in this area. States conducting administrative reviews should not delete cases submitted by another State simply because they would not have been submitted, for policy reasons, by the State with the order.

F. Interstate Transmittal Forms

To initiate a number of desired enhancements to interstate case processing, OCSE revised the interstate transmittal forms packet (OCSE-AT-97-06). One of these enhancements was to facilitate communication and coordination between States regarding Federal offsets.

The previous interstate transmittal form has been revised and reformatted into three separate transmittals. The new Interstate Transmittal #1 is the appropriate form to use as a transfer document when the case is being referred to the State with the order for the purpose of conducting an administrative review. Likewise, the State with the order can use this form for reporting the results of the administrative review to the State that submitted the case for offset. (See EXHIBIT U for the Child Support Enforcement Interstate Transmittal.)

The new Interstate Transmittal #3 is for use in all other interstate inquiries associated with the Federal offset program. The Interstate Transmittal #3 has been designed for use in obtaining and/or verifying information for the purpose of submitting a case for offset when the order and/or pay record for the noncustodial parent are in another State. A State receiving a request for assistance pursuant to Transmittal #3 is able to provide the requested assistance without opening up a IV-D case. Due to this, the case closure implications associated with the previous Interstate Transmittal form are avoided.

When determining the arrears amount for certification, the submitting State should provide the current arrearage at the time of certification. If there are multiple orders in the case being certified and a tribunal has entered a Controlling Order determination under UIFSA, the amount of the arrears determined pursuant to the UIFSA registration action is binding upon all other States. In multiple order cases, a State that issued one of the multiple orders used in the Controlling Order determination may certify the arrears owed under their order as determined by the tribunal issuing the Controlling Order determination. If such a State certifies the arrears owed under its local order, their certification should clearly indicate that they are only certifying a portion of the total arrears.

G. Case Submittals

OCSE will process and give priority to cases on a first-in-first-processed basis. OCSE and FMS have agreed to continue this preexisting processing procedure during the transition from IRS to FMS. In the future, recommendations for alternate processing procedures will be reviewed by OCSE and FMS. OCSE will keep you advised.

It is important that all submittals be as accurate as possible, both at the time of issuing the pre-offset notice and when the submittals are sent to FMS.

Since the expansion of the Offset Program to non-TANF families, it is possible for a State to submit the same SSN twice, once for assigned arrears and once for non-TANF and Medicaid-only arrears. When submitting cases involving the same SSN, States should include in their transmission only one record reflecting combined local requests for TANF/foster care cases, and one record reflecting combined local requests for non-TANF and Medicaid-only cases. Duplicate TANF/foster care case submittals or duplicate non-TANF and Medicaid-only case submittals from a State will not be accepted. Therefore, both the TANF/foster care case and the non-TANF and Medicaid-only case (with the greatest arrearage) will be accepted and all others will be rejected. Each State must combine its duplicate cases in either category and submit them as one case for offset. States should submit one consolidated file to OCSE with a completed certification. However, multiple submissions will be accepted from a State provided that each submission is accompanied by a completed certification. Multiple submissions should only occur if time does not permit the State to merge all local requests into a single submission or if the State lacks the capability to merge data. It is important to the ultimate effectiveness of the Program that States take the time to review their final case submittals.

Every time a record is submitted to OCSE for processing, i.e., new submittals or updates, the State must indicate whether the transaction pertains to a TANF/foster care case (A) or to a nonTANF/Medicaid-only case (N). Every update and State payment (refund to obligor) must also contain the corresponding processing year. If a case type changes, i.e., from TANF to NonTANF or NonTANF to TANF, States should use Exhibit N to reflect the change. For example, if a NonTANF case is changing to a TANF case, States should submit a modification ("m") with a zero balance on the NonTANF case and an add ("a") with an accurate arrearage on the TANF case. In other words, you are inactivating the NonTANF and activating the TANF.

Any records not containing this information will be rejected. (See Exhibit N for Submission Requirements.) Any record submitted that does not contain the case type indicator will be rejected. Likewise, all reports issued by OCSE will include a case type indicator for each record, as well as the appropriate processing year.

If there are multiple submittals for the same noncustodial parent from more than one State, the first submittal certified to OCSE will receive priority for collection. After this initial priority, satisfaction of State claims is based on the amount of the delinquency (from highest to lowest). All arrears assigned under either 408(a)(3) or 471(a)(17) will be satisfied before any non-TANF delinquency can be offset. It should be noted that other Federal debts in addition to back taxes may be offset by interception of Federal income tax refunds. IRS tax debts have first priority over all other offsets. TANF and foster care arrearages come next, followed by all other Federal debts, and non-TANF child support arrearages including Medicaid-only cases.

For cases submitted after January 1999, States will have the opportunity to choose which payments are subjected to offset on a case-by-case basis, i.e., Federal income tax refunds or various administrative payments. (See Exhibit N.) You should note, however, that the Federal income tax refund offset remedy is mandated and must be used if a case meets the criteria. also, procedures must be in place to participate in the denial of U.S. Passports. All cases eligible, pursuant to state procedures must be certified to OCSE. (See Federal Income Tax Refund Offsets, page 13 and Denial of U.S. Passports, page 14.) States can, however, use the exclusion indicator code on page 4 of EXHIBIT N to exclude other payments from administrative offset. For example, States may already have a wage withholding or garnishment in place and may not want to offset a federal salary while still subjecting the case to other administrative offsets. There may also be instances in which a federal salary is offset on an individual that the State did not know was a federal employee. The State may then decide to exclude the debt from federal salary offset and directly attach the wages. FMS currently plans to attach 50 percent of federal salary offsets on child support cases and plans to charge the full offset fee, yet to be determined for PY1999, for each offset. The State should determine which approach is most cost effective and convenient. The State has the flexibility and case control to decide which payments to subject to administrative offset. (This, of course, does not include federal tax refund payments which, if the criteria is met, are mandated to be submitted for offset.) Please note that the codes are used to exclude certain payments from offset, and/or matches from taking place, so, if the field is left blank, all appropriate offsets/matches will occur.

States may take advantage of this opportunity when submitting cases for the upcoming 1999 processing year if they use the new format. All States will be required to use the new format effective January 1999.

Exhibit N also allows the States the opportunity of requesting that OCSE submit the case to multistate financial institutions to meet the requirements under section 466(a)(17) of the act with respect to multistate financial institutions doing business in their state. Section 466(a)(17) of the Act requires States to enact laws requiring the use of procedures under which the IV-D agency will enter into agreements with financial institutions doing business in the State for the purpose of securing information leading to the enforcement of child support orders. (See OCSE-AT-98-07, dated March 2, 1998). The IV-D agency and financial institutions are required to conduct a quarterly data match to identify assets in the financial institution of obligors who owe past-due support.

Because of the number of financial institutions doing business in multiple States and the burden it would cause them and IV-D agencies, OCSE has plans to reduce the burden by acting as a conduit of information from States to multistate institutions. Per H.R.3130, HHS now has the authority through the FPLS to assist States in coordinating data matching with financial institutions doing business in more than one State by sending information on obligors who are overdue in paying child support in any State. The multistate financial institutions will transmit to HHS identifying information on individuals who owe past-due support and who have accounts with the financial institution(s). OCSE will transmit the information back to the State and the State will take appropriate action to seize the asset.

OCSE will work with States and multistate financial institutions to send cases submitted for financial matching to multistate institutions to conduct the data match required by the federal statute. If the State does not use the exclusion indicator to indicate they are not interested in OCSE's help in financial institution data matching, OCSE will initiate the match in accordance with further instructions on this process that will be issued.

H. Edit Validation

Each State submission will be processed through an Edit Validation program prior to acceptance for forwarding to FMS. The State will receive an Edit Validation Report which indicates types of errors and percentage of errors. OCSE will analyze these statistics and make the final decision as to what corrective actions, if any, will be taken. Possible actions include:

149 Data returned to State for correction and resubmittal;
149 Errors corrected by OCSE; or
149 Errors rejected (not correctable).

Detailed submission instructions and specifications are contained in EXHIBIT .

I. Submission Date

States should refer to the schedule for 1999 processing year. This will be the last year (1998) States will be required to submit their whole caseload as they will have the ability to add new cases and increase arrears on an ongoing basis beginning January 1999.

J. Submitting Test Cases to OCSE

For PY 1999 State agencies will be afforded one final opportunity to test the accuracy of their case records and to correct errors prior to submission for Federal income tax refund offset/administration offset program. After January 1, 1999 States will be able to submit new cases on a continuing basis, therefore ending the annual test process along with the annual submittal process (Exhibit N). This is because States will be able to correct and resubmit cases on an on-going basis beginning January 1, 1999. However, OCSE will continue to work with States to ensure the accuracy of submittals and may accomplish periodic testing on an as needed basis.

Test cases submitted this year will be processed through the OCSE Edit-Validation program with results being returned to States (Exhibit I). In addition to the processing, all cases that are returned by the IRS as unaccountable because name and SSN do not agree (Code 20), will be sent to the Social Security Administration to be run against the Enumeration Verification System (EVS). These cases will be run against "system 220" which will correct those SSNs that may be slightly incorrect or have a transposition, thus causing it to reject. The results (Exhibit K) of this processing will be sent to the State so that any corrections may be made before submittal to the Federal income tax refund and/or administrative offset program. For the test, please submit all cases from your State to ensure more accurate submittals from your State. Furthermore, if the test transmission results in new addresses from IRS (Exhibit P), it will assist OCSE during the issuance of pre-offset notices.

States will receive a Test Transmission Unaccountable Report (Exhibit K) which will indicate matching errors at IRS due to problems with the noncustodial parent's name or SSN. The total number of test cases and the total amount of arrearage should be provided with the submittal. The Test Transmission must be submitted to OCSE during the scheduled timeframe. No Test Transmission will be accepted after the 1998 test period ends (see Exhibit N).

 


 

III. PRE-OFFSET NOTICE AND COMPLAINT PROCEDURES

 

A. Pre-offset Notice

The State IV-D Agency, or OCSE at the State's request and if OCSE agrees, must send a written advance notice to individuals before referring their names to FMS for offset. Refer to EXHIBIT C, OCSE's new pre-offset notice which is designed to be used for participation in the Federal offset program, i.e., Federal Tax Refund and/or Administrative Offset and denial of passport. Please note that the new notice includes language that clearly advises the obligor that the amount of the offset will be based upon the debt owed at the time of offset and may exceed the amount indicated in the preoffset notice. If OCSE does not mail your State's preoffset notices, we strongly encourage you to include similar language. Because the amount of the debt may exceed the amount indicated in the notice, we encourage States to continue to send periodic notices and especially where there are significant increases in the amount of the debt. All preoffset notices must be verified by your Regional Offices prior to use and must inform noncustodial parents of the following:

149 The right to contest the State's determination that past-due support is owed or the amount of past-due support submitted;
149 the right to an administrative review by the submitting State or at the noncustodial parent's request the State with the order upon which the referral for offset is based; and
149 the procedures and timeframe for contacting the IV-D Agency in the submitting State to request administrative review.

Additionally, IRS recommends that States include in their notice the following language: "If you are married, filing a joint income tax return, and you incurred this debt separately from your spouse, who has no legal responsibility for the debt and who has income and withholding and/or estimated tax payments, he or she may be entitled to receive his or her portion of the joint refund. If your spouse meets the criteria stated above, he or she may receive his or her portion of the joint refund by filing a Form 8379, Injured Spouse Claim and Allocation (see Exhibit DD). Form 8379 should be attached to the top of the Form 1040 or 1040A when you file, or be filed according to other instructions as indicated on the Form 8379."

Section 406(a)(7) of the Social Security Act, also requires States to have procedures for periodically submitting cases with support arrearages to consumer reporting agencies after notice and an opportunity to contest the accuracy of the information. In accordance with OCSE-IM-88-1 dated April 12, 1988 the State where the noncustodial parent lives should submit the name and the amount of the overdue support to the credit bureau which may or may not be in the State which is submitting the case for offset.

The pre-offset notice must include, in addition to the elements listed above, the ORIGINAL arrearage amount which will be submitted to FMS and a State or local address and telephone number for the taxpayer to contact if he/she desires to contest the offset or has any questions. If there are any changes to your State or local address and/or telephone number, please notify OCSE's Special Collection Unit at 202-401-9389 immediately and submit Exhibit R, Notification of issuance of pre-offset notice, offset notice and final case submittal.

In order to ensure that all notices meet the requirements of 45 CFR 303.72(e), States electing to issue their own pre-offset notices must submit a copy to the OCSE Regional Office for review by July 15. OCSE will review the notice to see that it meets the above requirements. Pre-offset notices must be mailed by the end of October 1998 for PY 1999 to give sufficient time for taxpayers to respond to the State agency. IV-D Directors must certify that notices for the prior processing year were mailed "by the end of October 1997" and that notices for the upcoming processing year will be mailed by October 31. This certification should be forwarded to the OCSE Regional Office at the time of the review of the pre-offset notice. A copy of the notice and certification should also be sent to the OCSE Special Collections Unit. Beginning January 1, 1999, mailing of pre-offset notices will be an ongoing process, whether the State issues their own or they have OCSE issue them. Because the delinquency criteria for Federal Tax Refund and Administrative Offset is different (90 days delinquent for Tax Refund Offset and 30 days for Administrative Offset), OCSE will hold all cases for 90 days, thus meeting the more stringent requirements for the Tax Offset Program.

States that choose to have the required pre-offset notice printed and mailed by OCSE will be charged for this service. OCSE charges include the costs of printing the notices, customized envelope, mail processing, and postage. Any fees charged the State are reimbursable at the current Federal matching rate for child support administrative expenses so that the Federal Government still bears the majority of the cost (66 percent). For processing year (PY) 1999, the cost for the service will be approximately $.45 per notice. The actual amount will be collected through the grant process on OCSE-131 or by check in January 1999. See AT-96-01 dated October 30, 1995 and supplemental instructions in Dear Colleague letter DC-96-32 dated June 24, 1996. The procedures are as follows:

  • States requesting OCSE to issue their pre-offset notices are to furnish the information to OCSE as requested in Exhibit AA immediately.
  • Information provided must include an estimate of the number of cases for offset which will be submitted for the processing year. Even though it may be difficult for some States to offer an exact estimate, it is important that States give as accurate an estimate as possible.
  • The States will be billed for the actual amount owed in December 1998. For those States who pay by check, payment is to be made in January 1999. (The dollar amount will be determined by the actual number of pre-offset notices mailed times the cost per notice, approximately $.45.) The check should be made payable to the Office of Child Support Enforcement, and should cite appropriation number 75X1536. For those States that require a Federal Tax I.D., the number is 53-019-6960. The CAN # is G995123.

The State IV-D Agency may elect to use a State or local address and telephone number as the contact reference on the pre-offset notice mailed by OCSE (see EXHIBIT S). Local addresses may also be used as the return address on these pre-offset notices. However, if the State elects to have OCSE print a local contact, individual case submissions must contain local identification codes. This information must be transmitted to OCSE using CONNECT:Direct (Exhibit D). Please submit to OCSE using the Offset Notice Address or Phone Number Change form (see Exhibit W), all local addresses and phone numbers that have changed or have been added during the current processing year. Both the local address and local phone number have to be submitted even though only one of them has changed. Please do not submit the entire file. Only submit the changes.

FMS allows States the capability of using a local address and telephone number as the contact reference on the offset notice. This expedites the response to noncustodial parent's inquiries and complaints. Regardless of whether a local address or State address is used, there must be a reference to 'Child Support' or 'Family Support' in the address to distinguish the offset from the other Federal agencies participating in the program. In addition, specific names of contact persons should not be used. Instead, the State may wish to use a title such as Offset Coordinator. States must not use 'IRS' or 'FMS' in their address, thus avoiding any misrepresentation to taxpayers. FMS will specify on the offset notice whether the case is a TANF or non-TANF case. This will appear just below the child support enforcement agency address. States are to notify OCSE if a local address and telephone number is to be used for the FMS offset notice (see EXHIBIT R). If the State elects to have FMS print a local contact, individual case submissions must contain local identification codes which correspond to the FIPS codes. It is critical that this information remain accurate and up-to-date.

FMS is requiring each State to certify that all addresses and telephone numbers have been verified. (See Exhibit X.) Exhibit S must be returned by each State for both local and State address/telephone changes. Maintaining accurate address and telephone information is extremely important and it is imperative that States provide correct information so that the non-custodial parents will be able to contact the appropriate office. Changes should be submitted to OCSE.

B. Complaint Procedures

An essential element of the offset process is the opportunity afforded noncustodial parents to contest the offsetting of all or any portion of their refund. Since the complaint procedures vary somewhat between interstate and intrastate cases, they will be treated separately. Complaint procedures are the same for assigned arrears and non-TANF arrears.

1. Procedures for Contesting Intrastate Cases

Upon receipt of a complaint from a noncustodial parent in response to the advance notice or concerning a Federal income tax refund or administrative payment which has already been offset, the State must review its submittal and attempt to resolve the complaint. If the taxpayer requests an administrative review, the IV-D Agency must send a notice to the noncustodial parent and, in non-TANF and medicaid-only cases, the custodial parent of the time and place of the administrative review of the complaint and conduct the review to determine the validity of the complaint. If the complaint concerns a joint Federal income tax refund that has not yet been offset, the IV-D Agency must inform the noncustodial parent that the IRS will notify the noncustodial parent's spouse at the time of offset regarding the steps to take to secure his or her proper share of the refund.

If the administrative review results in a deletion of, or decrease in, the amount referred for offset, the IV-D Agency must notify OCSE using the procedures for reporting updates. Timeframes for reporting updates are dependent upon when the administrative review is conducted. If the review occurs prior to January 10, the update should be reported during the State's normally scheduled update process. If, however, the review occurs after January 10 and results in a deletion or modification, the update must be reported to OCSE within 10 work days of the administrative review. (See Exhibit N for Submission Requirements.) If, as a result of the administrative review, an amount which has already been offset is found to have exceeded the amount of past-due support owed, the IV-D Agency must take steps to refund the excess amount to the noncustodial parent promptly, and report to OCSE a State payment. In joint tax return cases, the refund check should be payable to both parties. FMS will provide both taxpayers' names on the monthly collection reports in cases involving joint returns.

2. Procedures for Contesting Interstate Cases

In compliance with 45 CFR 303.72 (g)(2), if the noncustodial parent requests an administrative review in the submitting State, the IV-D Agency must follow the same procedures set forth above for intrastate cases. In particular, the submitting State should review its computation of the arrearage submitted for offset and the underlying documentation, any new evidence provided by the noncustodial parent, and attempt to resolve the complaint if possible.

If the complaint cannot be resolved by the submitting State and the noncustodial parent requests an administrative review in the State with the order upon which the referral for offset is based, the submitting State must notify that State and provide all necessary information (including a copy of the order and any modifications, a copy of the payment record or the custodial parent's affidavit, and the custodial parent's address for a non-TANF/Medicaid-only case) within 10 days of the noncustodial parent's request for an administrative review. States should use the interstate transmittal form to refer a case to the State with the order to conduct an administrative review. (See Exhibit U.)

At the same time the submitting State must send OCSE an update to report that the case is being transferred to the State with the order for the purpose of conducting an administrative review. When reporting the transfer to OCSE, the submitting State must also indicate to which State the case is being transferred. States must report this transfer one of two ways. If the volume of transfers is considerable, we encourage States to transmit using CONNECT:Direct (Exhibit N), or via personal computer for smaller volumes. (See Exhibit Z for details on updating cases by Pcs.) When this update is received, OCSE will generate an update request form to be forwarded to the State with the order. (See Exhibit V.) This form contains case data from the submitting State, i.e., SSN, local code, case number, and original arrearage, so that the State with the order can easily submit a deletion or modification by PC, or electronically, based upon the outcome of the administrative review. Further explanation of this form is provided in the update section.

The State with the order must send a notice to the noncustodial parent and, in non-TANF/Medicaid-only cases, the custodial parent, of the time and place of the administrative review; and the State must conduct the review and make a decision within 45 days of receipt of the notice and information from the submitting State. The decision should be based upon the accuracy of the arrears and whether or not it is legally enforceable under State law. If the State conducting the review is not the State which submitted the case for offset, it is not appropriate to base the review on policy considerations, i.e., whether the State with the order would have submitted the case for offset under its procedures.

If the administrative review results in a deletion of, or decrease in, the amount referred for offset, the State with the order must notify OCSE within the same timeframes set-out for intrastate cases. Again, States must transmit this information to OCSE using CONNECT:Direct. OCSE will also notify the submitting State when the State with the order has deleted or modified a case due to an administrative review. If the offset has already occurred, the State with the order must notify the submitting State of its decision, and the IV-D Agency in the submitting State must take steps to refund any excess amount offset to the absent parent promptly. The State may not delay refunds of excess amounts withheld pending receipt of the offset from the FMS. When an administrative review is conducted in the State with the order, the submitting State is bound by the decision made by that State. Please note, however, that if the submittal is based upon orders from two States, the reviewing State should only verify the arrearage which accrued under its order. Such submittals will usually require two separate administrative reviews if the taxpayer challenges the entire submittal. And, as in intrastate cases, refunds in joint return cases should be payable to both parties.

In computing incentives, if the case is referred to the State with the order for an administrative review, collections made as a result of Federal income tax refund or administrative offset will be treated as having been collected in full by both the submitting State and the State with the order. When a collection is received for a case which has been transferred to the State with the order for the purpose of an administrative review, OCSE will report the offset to both States. If at a later date there is an adjustment on a transferred case, the adjustment will be reported to both States. The submitting State is liable to FMS for any adjustments and both States will have to reflect such adjustments when reporting collections to OCSE. The report issued to the State with the order (transfer State) will be in hard copy and will be in addition to the monthly collection report. (See narrative description of major reports.)

3. Guidelines for Social Security Number Error Problems

To achieve uniformity and to ensure that the proper procedures are followed in any case in which there is a discrepancy in the identification of the taxpayer certified for offset and/or the taxpayer actually offset, due to an SSN error, IRS has worked with OCSE to develop the following guidelines for the State to follow in what was determined to be the three most common situations.

SITUATION 1:

If the State simply identifies the wrong SSN for an individual, the State should make a prompt refund to the taxpayer, delete the case, and report a State payment to OCSE. For example, William Green, SSN 222-33-4444 was submitted instead of the actual noncustodial parent William Green whose SSN is 888-99-7777. In this instance the wrong SSN has been identified for the noncustodial parent and the taxpayer being offset is entitled to a prompt refund from the State.

SITUATION 2:

The second type occurs when a person (other than the obligor) files his/her return using another person's SSN (the obligor's). One such example is when the State submits John Smith, SSN 333 22-5555 and his current spouse, Mary Smith, files her return separately using the IRS label mailed to John Smith. If Mary files her return prior to John, her refund will be offset because the IRS computer will read his label. Since the name on the label is the person submitted for offset, even though the return is for Mary Smith, FMS will forward her refund to the submitting State. In this situation, the State should not refund to the taxpayer but should refer Mary Smith to the IRS who must correct their records, adjust the State's collection, and make a refund to her.

Another example of this particular type of problem is very similar to the one above except, in this situation, it's a father/son relationship. If Jose Rodriques, Jr. files using his father's SSN and is offset, but is not the absent parent, the State should not make a refund to him. Instead Jose Rodriques, Jr. should be referred to IRS so his tax account can be updated correctly. Again, IRS would adjust the State's collection and refund to Jose Rodriques, Jr. Then when Jose Rodriques, Sr. files his refund, it can be offset.

SITUATION 3:

Occasionally two persons are assigned the same SSN by the Social Security Administration (SSA). If this is the situation, the first person filing his/her return will be offset. If, however, the person is not the obligor, the State should not make a refund to the taxpayer. Instead, the person should be referred to IRS who will assign a temporary filing number, credit the taxpayer's account with the refund, and have the person obtain a new SSN from SSA. An adjustment to the State's collection will be made by IRS and a refund will be made to the taxpayer thus correcting the offset. Consequently, when the obligor files his return, the refund will be eligible for offset.

 


 

IV. Updates to Case Submissions

 

OCSE has implemented a new process whereby States are required to transmit case data to OCSE electronically via CONNECT:Direct. The use of personal computers is still available. And as of January 1, 1999, States may also enter new cases and increase (as well as decrease) certified arrears. If you need assistance or more information regarding Connect:Direct, please call the Data Transmission Team Leader at (703) 352-3855.

A. Deletions and Modifications

For both TANF/foster care and non-TANF/Medicaid-only cases, submittals received for PY1999 can be updated for deletions or decreases in arrearage amounts from the time of submittal throughout the entire processing year. Updates will be accepted and lasting throughout the year. Requests for case updates cannot be processed for the purpose of deleting or modifying amounts on the pre-offset notice. Updates received at OCSE by the scheduled date from those States using the earlier timeframe will be processed against the OCSE master file before forwarding the cases to FMS. As in the past, OCSE strongly urges that updates be submitted before OCSE sends the consolidated file to FMS. The extended submittal deadline only allows for State internal update processing prior to final submittal to OCSE. Early update submission assures case correction before cases are forwarded to FMS for potential flagging for offset.

States are encouraged to use the new record specifications (see Exhibit N) when submitting cases for the upcoming 1999 processing year. However, if this is not possible, OCSE will accept the transmission in the current format. It is very important to note that effective January 1, 1999, all transmissions must be accomplished using the new format (Exhibit N) and via CONNECT:Direct. For the latter part of 1998 OCSE will be running dual systems. In other words, we will continue to update 1998 cases in the current format and the PY 1999 cases in the new format where appropriate.

Cases received will be marked on the OCSE master file and forwarded to FMS on a weekly basis once the cases have been submitted to FMS. This means that, effectively, cases received between early December and approximately the third week in January will not be processed at FMS until after FMS has loaded the cases in their system, which usually occurs towards the end of January. It is important that States recognize this time gap in processing. OCSE strongly encourages States to maintain a list or file of all updates referred to OCSE during this time for tracking purposes. In the beginning of February OCSE will return a report to States indicating the results of the updates. It is important that you process the rejected file. You may be able to make corrections and resubmit these cases. Beginning in January 1999 modifications may include increases to the original certified debt. However, please remember that for increases, not deletions or modifications, the cases will be held for the appropriate time before forwarding to FMS.

To assist States' efforts to monitor update processing, a brief summary of the processing schedule is provided. Every Wednesday, OCSE creates a weekly update file to be sent to FMS electronically. These updates are processed at FMS over the weekend. The results of FMS processing are usually received at OCSE on the following Monday and processed by us the next day. OCSE will then transmit the update results to the States via CONNECT:Direct. At this time the State should make sure that the number of cases sent to OCSE matches the results received. (See Exhibit I).

Each State should be reminded again that FMS does not accept duplicate transaction types per case within the same weekly batch. In other words, if the State reports two modifications for a case in the same batch, FMS will accept only the first modification rejecting the second. If, however, a taxpayer has been submitted for both a TANF/foster care arrearage and a non-TANF/Medicaid-only arrearage there is no problem in updating both cases in the same batch. OCSE will edit the data prior to referral to FMS. If duplicate modifications are submitted for the same case, OCSE will accept the lowest modification. If, however, duplicate State payments are submitted, the first one will be accepted with the duplicate being rejected.

Update transactions for the Federal income tax refund offset program can be fully effective only if they are submitted to FMS prior to the processing of the individual's tax return. Therefore, it is vital to the success of the offset process that States submit updates as early and as frequently as possible. OCSE will forward updates on a weekly basis to FMS for processing.

States should not submit modifications/deletions as the result of an offset from the FMS regardless of the source of offset, i.e., Federal tax refund offset or an administrative offset. The arrearage amount is automatically decreased by the offset amount at the time of ANY offset. A modification in this case would, in effect, reduce the arrearage amount of the offset.

It is important to point out that in all cases where an obligor has requested an administrative review, regulations require that an update must be submitted if the review results in a deletion of, or decrease in, the amount referred for offset. Timeframes for reporting updates are dependent upon when the administrative review is conducted. If the review occurs prior to January 10, the update should be reported during the State's normally scheduled update process. If, however, the review occurs after January 10 and results in a deletion or modification, the update must be reported to OCSE within 10 work days of the administrative review. The mandatory update following the administrative review is required regardless of the magnitude of the reduction in the amount referred for offset.

For cases where there has been no request for an administrative review, States are required to notify OCSE of any decrease in, or elimination of, an amount referred for collection by Federal income tax refund and/or administrative offset on at least a monthly basis. It is important to note that new FMS regulations supersede the old IRS regulations where only "significant decreases according to State guidelines" were required to be reported to OCSE. If an administrative review has been conducted, any deletions or decreases must be reported to OCSE.

Updates must be transmitted using CONNECT:Direct or by a PC. Use the record format specified in Exhibit N. Position 73 reflects transaction type i.e., A, D, L, M, R, S or T. A signed request for update of transmittal (see Exhibit E) labeled "STATE UPDATES TO TAX OFFSET" must also be forwarded to OCSE at the time of transmission. Also, each record must indicate whether it is a TANF/foster care or a non-TANF/Medicaid-only case. Each individual update case must also be identified by processing year. Please fax the above-referenced transmittal to OCSE's Special Collections Unit at (202) 401-5553.

B. Update Reporting by Transfer State

Interstate cases involve a slightly different procedure due to the nature of their complaint process. If the submitting State's attempt to resolve the complaint by reviewing its records and checking the computation of the arrears is unsuccessful, the noncustodial parent has the right to have an administrative review conducted by the State in which the order was issued. For example, State A submits a case which is based on an order in State B. The noncustodial parent, as a result of the pre-offset notice contests the referral for offset. State A reviews the documentation for the submittal and additional evidence provided by the noncustodial parent, but cannot resolve the matter and, at the noncustodial parent's request, forwards the case and all pertinent information to State B within the regulated time for an administrative review. At the time State A forwards the case data to State B, State A must also notify OCSE of the transfer using the update procedure and designating the case with a 'T' for transfer. (See Exhibit N.) Also, the submitting State (State A) must designate the State to which the case is being transferred (State B). If the appropriate local code for State B is known, it should be provided when notifying OCSE of the transfer. Upon receipt of the 'T' updates, OCSE will process the cases with their weekly update runs and forward to State B an update request form. Again, States must transmit this information using CONNECT:Direct . When the update is completed, OCSE will report the results to the State.

C. State Payments (Refunds)

Each State will send to OCSE, on a weekly basis, a report of every refund the State makes to an obligor for any case submitted for Federal income tax refund offset and/or administrative offset. Offsets distributed to the custodial parent are NOT to be reported as State payments. The States are to use the same format used in issuing updates (See Exhibit N) using code 'S' for "State payment."

States can always submit State Payments, there is no deadline. States are nevertheless encouraged to submit State payment reports to OCSE as expediently as possible. This procedure should be of considerable benefit since an Injured Spouse Claim and Allocation can be filed for up to 6 years.

A State payment may be reported on any collection made from PY 1993 to present. We encourage States to report any payments not previously reported. When reporting a State payment, the processing year in which the original collection was made must be reported (see EXHIBIT N).

Still in effect is the State payment procedure to accept both upward and downward modifications of State payments. When reporting two or more State payments on a case due to additional money being returned to a taxpayer, or an incorrect amount on the first reporting, the correct amount of the payment should be reported. This is true whether a State is increasing or decreasing the amount of the payment. For example, if a State payment of $150 is reported on a case, and the State refunds the same taxpayer an additional $50 at a later date, the State should then report a State payment of $200. If on the other hand, the State reports a payment of $250, but only actually refunded $25, the State should then report a State payment of $25.

FMS will indicate if the refund involves a joint return so that refund checks can be issued to both parties. In most cases, FMS will provide the names of the individuals involved in the joint return. However, if only the noncustodial parent's name is provided, the refund check should be issued to "Mr. and Mrs.".

When the State is unable to locate an obligor for the purposes of returning excess amounts which have been offset, the State should send OCSE, in writing, specific case information, i.e., obligor name, SSN, amount to be returned to obligor, and a brief explanation of the State's efforts to locate the noncustodial parent. OCSE will forward the information to FMS. At this point FMS will research the individual case and provide the State with the most recent address for the obligor. Due to disclosure limitations FMS will no longer issue returns to the obligors for the State. As a cautionary note, this procedure is to be used on a limited basis, and only after diligent efforts have been made to locate the obligor. It is not a substitute procedure for States to use instead of making prompt refunds, but may be used for example when the obligor is deceased and/or locate leads have been exhausted. If money is still returned as undeliverable, States will need to set-up a fund to account for this.

 


 

V. PROCESSING OFFSETS

 

A. Offset Processing by FMS

Upon receipt of all certified cases from OCSE, FMS will run the consolidated data against FMS' master file (which contains all primary tax filers) and against a cross- reference file (which contains secondary tax filers). This will enable States to obtain an offset even though the noncustodial parent may be listed as a secondary filer on the return. Cases are matched against the SSN and the first letter of the surname and two of the next three letters (proximal match). OCSE will be notified, and in turn will notify State IV-D agencies of any cases that do not match on the SSN or surname check. (See EXHIBIT K.)

For those cases which did not match, a further explanation of the errors follows:

  • SSN not on file, name does not agree, and invalid combination of name and SSN. - This error occurred because the State did not submit an address and OCSE was unsuccessful in obtaining one from IRS. States should try to obtain an address and resubmit the case.
  • SSN did not verify; however a corrected SSN was located by SSA - These cases which originally came back from FMS as an Invalid Combination of Name and SSN were sent to the Social Security Administration (SSA) to be run through the numeration Verification System (EVS) 220. This system corrects SSNs which are slightly off or have transposed numbers. If a correction was found, the case is no longer listed under Invalid Combination of Name and SSN, but will now fall under this category so that the State may correct the SSNs before resubmittal. (EXHIBIT K -- Unaccountables.)

An offset notice (See EXHIBITS F and F1) will be issued by FMS after each offset is processed. The FMS Notice of Offset states that FMS has retained all or part of a Federal income tax (or other Federal payment if the State is participating in the Administrative offset program) for full or partial satisfaction of past-due support obligation.

The notification will advise the non-custodial parent to contact the appropriate State agency to correct any errors or to obtain answers to any other questions. The offset notice will contain the SSN of both the primary and secondary tax filers. Please note that this notice will be received by the obligor before the State receives notification of the offset. States must respond to complaints and develop specific procedures for promptly refunding any money incorrectly offset whether the collection has been received from FMS or not and submit a State payment record to OCSE for the amount refunded.

FMS will also identify the source of the offset in the notification to the non-custodial parent. The State, too, will be notified of the source of the offset, i.e., federal income tax refund, vendor/miscellaneous payment, federal retirement, etc., as the source of the offset will affect distribution of the money collected. (See OCSE-AT-97-17 dated October 21, 1997, page 25.) Knowing the source of the offset may also increase the State's ability to offset payments through other remedies.

OCSE will prepare a report showing the address on the tax return and mail the report to the individual States. The address report is combined with the monthly collection report.

The IRS will offset a refund from a joint income tax return to offset a past-due support obligation if either tax filer is certified as being legally responsible for providing support. State IV-D agencies are to refer complaints or questions concerning joint refund cases directly to IRS. If the non-obligated spouse is not liable for the support debt, IRS will issue a pro rata refund to the spouse (upon the filing of an Injured Spouse Claim and Allocation) and the State will be required to reimburse IRS. IRS encourages the filing of a form 8379, Injured Spouse Claim and Allocation (see Exhibit DD) at the time of filing. Form 8379 should be attached to the top of the Form 1040 or 1040A, or be filed according to other instructions as indicated on the Form 8379. This will permit IRS to make direct refunds to the spouse and thus avoid adjustments to the State. States and OCSE will be advised by FMS of any adjustments to State collections that are required.

B. Processing Monies That Have Been Offset

The distribution of monies to States is done through a procedure that was implemented to improve the efficiency of Federal financial management and to benefit the State Agencies. This procedure is the use of Electronic Funds Transfer to make offset payments to the State. All payments are now made through the Treasury Financial Communications System (TFCS). The TFCS provides on-line access to the Federal Reserve Communications System (FRCS), enabling payments to be made to financial institutions that have access to the TFCS. Payments can also be made to institutions that do not have access to the TFCS through correspondent financial institutions or Federal Reserve Banks. Procedures have been developed for the electronic transfer of child support payments through cooperation with the National Automated Clearinghouse Association which sets rules and administers the Automated Clearinghouse (ACH) network. All transfers of funds for the monthly collection report for Federal income tax refund and/or administrative offset will be made around the last working day of the month with the exception of June, which will be made on approximately June 25, and December, which will be made on approximately January 10. The TFCS payment method eliminates mail and processing time associated with payment by check. Each TFCS payment message will contain the appropriate account number. To ensure that TFCS payments are directed to the correct financial institution and contain the correct contact information, we are requesting that the form EXHIBIT BB be returned to OCSE. Also, if the bank name or address or the financial institution's ABA routing number should change any time during the year, please notify the Special Collections Unit at (202) 401-9389 as soon as possible.

C. Distribution of Collections From Offsets

Past-due support amounts collected as a result of the Federal income tax refund offset procedure shall be distributed in accordance with section 457(a)(2)(B)(iv) of the Social Security Act. This section provides that such amounts collected must be used first to satisfy past unreimbursed assistance payments. Collections as a result of Federal income tax refund offset must be distributed to the TANF, IV-E, or Medicaid Agency if appropriate, or the non-TANF family within 30 calendar days of the date of receipt in the IV-D Agency unless State law requires a post-offset appeal process and an appeal is filed on-time. If an offset is made to satisfy non-TANF past-due support from a refund based upon a joint return, the State may delay distribution until notified that the unobligated spouse's proper share of the refund has been paid or for a period not to exceed 6 months from notification of offset, whichever is earlier.

Past due support collected as a result of the administrative offset program is to be distributed in accordance with the normal distribution procedures set forth in section 457 of the Act. (See AT-97-17 dated October 22, 1997.) The exception for processing of tax refund offset collections does not extend to collections resulting from administrative offsets, in other words, distribution of Federal Tax Refund offsets is the exception to the distribution rule.

The FMS Service Fee is deducted from the collections of refunds offset for past-due support. The FMS service fee is deducted from both tax refund and administrative offsets. For tax offsets the States should be reminded that although the amount received by the State will be the collection less the FMS fee, the States must distribute and credit the obligor for the full amount of the tax refund offset. The tax refund offset is a collection under the authority of Title IV, Part D, Section 464 of the Act, and is therefore required by section 456(a)(3) of the Act to reduce, dollar for dollar, the amount of the obligor's child support debt. The procedures for processing administrative offset service fees will mirror the pre-existing service fee procedures for offsets from federal tax refunds. That is, although the amount received by the State will be the collection less the FMS fee, the State must distribute and credit the obligor for the full amount of the administrative offset.

While federal tax refund offsets generally occur only once a year, some administrative offsets (such as, retirement or salary payments) may be reoccurring. States should note that FMS will charge a fee each time an offset occurs.

Each State must develop specific procedures for the prompt refund of any incorrect offset amounts.

If both assigned and unassigned arrears are submitted for offset, the assigned arrears will be offset before any payment can be made to the family. This priority is required by the Internal Revenue Code (26 USC 6402(c)) and applies in all cases regardless of the amount or the timing of the submittals. Other debts owed to the Federal government and submitted for offset will similarly be paid before any unassigned arrears can be offset.

D. Processing Offsets for Cases Submitted by Two or More States

When the same SSN is submitted by more than one State, OCSE will designate the State that submitted the case first as having first priority of offset. Subsequent submissions for offset of the same Federal income tax refund will be given priority based upon the amount of the arrearage (highest to lowest). During the FMS offset process, if the Federal income tax refund is greater than the amount owed to the first State, the balance will be used to satisfy the debt owed to the remaining States until the refund is exhausted or all debts are satisfied. Any remaining amount will be paid to the taxpayer. However, as noted above, an assigned arrears claim takes priority over a non-TANF claim even if the latter claim was submitted first. The same procedures apply to administrative offsets.

E. Adjustments to Collections

If an offset for delinquent support is made against a joint Federal income tax refund, the non-obligated spouse may file a request for an Injured Spouse Claim and Allocation of a joint return (Form 8379, see EXHIBIT DD), with the IRS to recoup his or her portion of any refund due. IRS encourages the injured spouses to file the amended returns at the time the original tax return is filed. Doing so will preclude the need for an adjustment. But since the State will not know if the spouse filed an injured spouse claim and received his/her portion of the refund, in non-TANF cases the State should not distribute the remainder of the refund to the custodial parent for six months. In some community property States the entire refund may be intercepted to pay either spouse's debt. If the spouse is entitled to a share of the refund, the IRS will pay the non-obligated spouse directly. When this occurs, FMS will send the obligated spouse a shortened version of the offset notice (see Exhibit F1). This shortened notice should assist States in determining whether the injured spouse filed a Form 8379 with the 1040 and already received his/her portion. If the amended return is filed after the original return, FMS will notify the State (through OCSE) and the State must reimburse FMS. The exact method of the reimbursement of FMS will depend upon the total collections made for the State during the month in which the adjustment for the amended return was made.

In addition to adjustments due to amended returns, there may be adjustments to collections made by IRS in cases where the wrong taxpayer was offset due to an error in the SSN or name. Furthermore, if the State submits a case that is protected by an automatic stay under bankruptcy proceedings, and there is an offset, IRS will make a reversal on that case at a later date. If the State should make a refund because a bankruptcy was in place, the refund should be sent to the trustee of the bankruptcy for distribution and not the absent parent. Prior year adjustments for spousal claims will be reported under the current year accounting procedures. However, these adjustments will be identified as prior year claims so that the appropriate collection record can be identified and updated.

Beginning in processing year 1988, the time period for filing an Injured Spouse Claim and Allocation was extended to 6 years (28 USC Section 2401). Therefore, there will now exist the possibility of States receiving adjustments to offset cases for up to 6 years. This includes adjustments for all cases within the past 6 years i.e., the 6-year period is retroactive. It is in part because of this that IRS is suggesting that injured spouses file the Injured Spouse Claim and Allocation Form 8379 (See EXHIBIT DD) at the time of original return filing. OCSE has included language to this effect in its pre-offset notices. States issuing their own notices should do likewise (See EXHIBIT C). Following the processing of amended tax returns and payment by the IRS, it will be necessary to make certain adjustments to the overall State collections and individual case records at the Federal and State levels.

F. Delay in Refunds

The following lists the most common reasons that will probably delay a refund. Although the transmitter of the electronic return is aware of these circumstances, it is apparent that the taxpayer doesn't always receive the information. IRS does not inform the transmitters of the specific reason for a refund denial.

The following conditions may delay refunds and/or change refund amounts. Requests generally will not be honored in these cases:

  • Taxpayer owes back taxes, either individual or business.
  • Taxpayer owes delinquent child support.
  • Taxpayer has a delinquent debt, such as student loans, etc.
  • The last name and SSN of the primary taxpayer must be the same as on last year's return or the return may be delayed at least one week for rematching.
  • The Estimated Tax Payments reported on the return do not match the Estimated Tax Payments recorded by IRS. This generally occurs when:

    a. The spouse made separate payments and filed a joint return or vice versa,

    b. The return was filed before the January 15, or

    c. The estimated Tax Payment was credited to the taxpayer's account.

  • Taxpayer is considered to be a first-time filer. This is defined as taxpayers who, during the past ten years, have not filed a tax return as a primary taxpayer using their current last name.
  • Taxpayer has at least one unfiled return during the past 5 years, and their current year return shows a refund.
  • The taxpayer has a Schedule E claiming a deduction for a questionable tax shelter.
  • The taxpayer is claiming a blatantly unallowable deduction.
  • Incorrect Direct Deposit information: i.e. Routing Transmit Number (RTN), or depositor account information.

Please remember that if a taxpayer is certified at FMS, they will be offset. If an institution incorrectly gives a taxpayer a refund, the taxpayer will still be offset by FMS and the money sent to the correct agency. The taxpayer is then liable to the institution for the money advanced.

 


 

VI. FMS SERVICE FEE STATEMENT AND ADJUSTMENT BILLING

 

The FMS fee is directly deducted from the collections. During the last few months of the processing year, many States' adjustments exceed collections resulting in a "negative collection transfer." When this occurs, OCSE issues the State a bill to be paid to the Fresno Service Center. (See EXHIBIT Q.) This bill is included with the monthly collection report issued to the State. Overdue payments to FMS (60 days past the invoice date) will be collected by deducting the amount of the past-due payment from future collections. FMS will also charge interest on all late payments, at a rate prescribed in the Treasury Fiscal Requirements Manual (1 TFRM 6-8020.20). Therefore, States are strongly encouraged to make prompt payment to FMS, thus avoiding the possibility of being charged interest on the delinquency.

 


 

VII. INQUIRIES TO OCSE

 

State agencies are directed to call OCSE directly with any questions or problems that arise concerning the Federal income tax refund and administrative offset program. State and local agencies should not, however, refer individuals to OCSE. On joint return cases where the non-obligated spouse is seeking a partial refund, the non-obligated spouse should be referred to IRS. As in the past, State inquiries should be directed to OCSE Regional Representatives or to the OCSE Special Collections Unit at (202) 401-9389, 4th Floor, Room 484, 370 L'Enfant Promenade, SW, Washington, DC 20447.

 


 

VIII. INQUIRIES TO STATES

 

The State contact for the Federal income tax refund and administrative offset program continues to change each year. To keep an updated listing please fill out EXHIBIT M and return it to our office.

 


 

IX. REPORTING

 

OCSE will provide explanatory reports on all phases of program operations with sufficient information to allow the State agency to take appropriate action. All State reports will include both TANF/foster care and non-TANF/Medicaid-only cases, sorted by local code and SSN. All reports issued by OCSE will contain a case type indicator for each record.

 


 

X. SECURITY AND SAFEGUARDING REQUIREMENTS

 

The Internal Revenue Code (IRC) was amended, effective December 31, 1985, to add a new section, 26 USC 6103(l)(10), pertaining to disclosure of information obtained by State agencies under the Federal income tax refund offset program. In general, this law provides that tax return information so obtained can only be used in "establishing appropriate agency records or in the defense of any litigation or administrative procedure ensuing from a reduction made under section 6402(c)." In addition, changes were made to section 6103(p)(4) of the IRC regarding safeguarding of information obtained through the Federal income tax refund offset process. Transmittals of tax return information obtained through OCSE must be protected from unlawful use, disclosure or access in accordance with these guidelines.

Please refer to the IRS' Publication 1075 "Tax Information Security Guidelines for Federal, State and Local Agencies," revised January 1, 1998, for guidance in assuring that existing practices, controls, and safeguards employed at the State or local child support offices adequately protect the confidentiality of the tax data provided by the IRS. Per P.L.104-193, the address, social security number and the amount of any reduction (relating to offset of past-due support against overpayments) may be disclosed to agents of the State.

Special attention should be given to the sections on illegal and unauthorized disclosure of tax information (See Exhibits 1 - 8 of Publication 1075). Particular attention should also be given to the Safeguard Procedures and Safeguard Activities Reports which are required when offices receive Federal income tax information. In States where the local child support offices are provided with unverified tax information, the local office should provide safeguard information to the State IV-D agency so that, either a consolidated Safeguard Activity Report can be prepared or the local reports can be attached to the Safeguard Activity Report submitted to the IRS by the State IV-D agency. Copies of these reports should be forwarded to the IRS District Director (Attention: Disclosure Officer) of the IRS District in which they are located. According to 6103(p)(4) of the Internal Revenue Code (IRC), the IRS has the authority to conduct its own safeguard reviews to ensure that tax return information is used as authorized and the State and/or local child support agency has protected the information against unauthorized disclosure. Copies of Publication 1075 maybe obtained by contacting the Special Collections Unit of the Federal Office of Child Support Enforcement at (202) 401-9389.

 


 

XI. QUALITY CONTROL

 

When transmitting data electronically, C:D or on the PC, it is imperative that States take appropriate measures to ensure quality control. Before data is forwarded to OCSE, it should be reviewed to make sure the data is formatted correctly and that accurate information is sent. Such reviews should occur any time data is forwarded to OCSE and particularly at the time of the final submittals. For final submittals, States should check for such things as: all counties have been accounted for, there are both TANF/foster care cases as well as non-TANF/Medicaid-only cases, the number of cases is accurate, case information is correctly formatted, the data is not compressed, etc.

 


 

XII. DATA TRANSMISSION METHODS

 

l. Electronic - States must use CONNECT:Direct via mainframe to mainframe to transfer data from the State systems center to the Federal National Computer Center (NCC). This is the preferred method for all transfer of data, whether it is a large or small volume of data.

2. On-line Data Entry - Direct access to the OCSE mainframe via a PC with modem. This method is appropriate for small volumes of data (100 cases or less) and allows for immediate processing by the OCSE mainframe. States currently use this method to submit updates for the Federal income tax refund offset program. If a State wishes to begin using on-line data entry, please contact the Special Collections Unit on (202) 401-9389. States will be requested to submit a "Computer User's Guide to Good Security Practices" (see Exhibit Z). The Special Collections Unit will provide the State with any information they will need. (See Exhibit Z.)

3. File Transfer - Electronic transfer of files between a personal computer (PC) and the mainframe. This method supports a large volume of data; however it is best suited for small to moderate (100 to 5,000 cases) amounts of data.

4. On-Line Query - This option enables States to query cases submitted by their State to see if a collection has been made, and update processed, or to just review the case. Please note that only individual State information is available. If you believe that there is activity on that case by another State, you must call the Special Collections Unit. (See EXHIBIT Z).

 


 

SCHEDULE FOR 1999 PROCESSING YEAR

 

NOTE: This will be the last "final" or "annual" submittal year. Beginning in January 1999, States may add new cases and increase arrears on an on-going basis. Please use the following schedule for the upcoming 1999 processing year (PY). All transmissions must use CONNECT:Direct.

JUNE 1 - JULY 10:

TEST SUBMITTAL PERIOD BEGINS. STATES SHOULD SUBMIT THEIR TEST FILE TO OCSE AS EARLY AS POSSIBLE, ALLOWING OCSE TO RUN THEIR FILE THROUGH THE EDIT VALIDATION PROCESS AND INFORM THE STATE OF ERRORS ON THE FILE AS QUICKLY AS POSSIBLE. THIS WILL ALLOW STATES TO MAKE CORRECTIONS AND RESUBMIT THEM TO OCSE BEFORE THE TEST FILE IS SUBMITTED TO FMS.

STATES WISHING OCSE TO MAIL THEIR PRE-OFFSET NOTICES FOR PROCESSING YEAR 1999 (SEPT - OCT 1998) SHOULD PROVIDE OCSE WITH AS ACCURATE AN ESTIMATE AS POSSIBLE OF THE NUMBER OF CASES THEY WILL SUBMIT.

 

JULY 10:

ALTHOUGH STATES WILL BE ABLE TO SUBMIT TEST DATA TO OCSE ON A MONTHLY BASIS, WE ENCOURAGE STATES TO SEND THE TEST DATA BY JUNE 12 AND THEN BY THE 12TH OF EACH MONTH THEREAFTER. STATES WILL RECEIVE THE RESULTS AND ADDRESSES DURING THE FIRST OR SECOND WEEK OF JULY GIVING STATES MORE TIME TO ANALYZE RESULTS AND CORRECT ERRORS FOR THE 1999 PY SUBMITTAL. IN ADDITION, THOSE STATES WHO ISSUE THEIR OWN NOTICE WILL HAVE MORE TIME TO PROCESS THE ADDRESS INFORMATION IN ORDER TO ISSUE NOTICES. BEGINNING WITH THE FIRST TEST CYCLE IN JUNE, TEST DATA WILL BE SUBMITTED TO FMS ON A MONTHLY BASIS.

 

JULY 10:

SOME STATE LAWS REQUIRE THAT THE NON-CUSTODIAL PARENT IS NOTIFIED ANNUALLY. FOR STATES THAT REQUEST THAT OCSE MAIL YOUR NOTICES, PLEASE CHECK YOUR STATE LAW TO DETERMINE IF ANNUAL NOTIFICATION IS REQUIRED AND LET OCSE KNOW.

 

JULY 15:

REVIEW OF PRE-OFFSET NOTICE BY REGIONAL OFFICES. IV-D DIRECTOR'S CERTIFICATION REGARDING PRE-OFFSET NOTICES DUE TO REGIONAL OFFICES (FOR REVIEW BEFORE USE).

 

AUGUST 19

EARLIEST DATE FOR TRANSMITTING PY 1999 SUBMITTALS TO OCSE. STATES TO PROVIDE INFORMATION FOR OFFSET NOTICE (EXHIBITS R, S, M AND X). STATES TO PROVIDE INFORMATION FOR ELECTRONIC FUND TRANSFERS (EXHIBIT BB). LOCAL ADDRESS TRANSMISSION DUE TO OCSE. EXHIBIT X CERTIFICATION MUST BE INCLUDED. Please note that the State's PY1999 Submittals cannot be processed until we have received and processed the local address transmission. If there have been no changes to the local address or phone number(s), please submit a memo to OCSE's Special Collections Unit indicating this.

 

SEPTEMBER 01

OCSE BEGINS PROCESSING PRE-OFFSET NOTICES: OCSE NOTIFIES THE NATIONAL INSTITUTE OF HEALTH'S (NIH) DATA CENTER THAT THE FIRST PRE-OFFSET NOTICES ARE READY FOR PROCESSING. WE ESTIMATE THAT OCSE WILL ISSUE OVER 2 MILLION NOTICES FOR PY1999. Please submit as early as possible.

 

SEPTEMBER 15

FINAL SUBMITTALS FOR PY1999 DUE FROM STATES THAT HAVE OCSE ISSUE THEIR PRE-OFFSET NOTICES.

 

SEPTEMBER 16 - OCTOBER 30

PY1999 PRE-OFFSET NOTICES MAILED BY OCSE, (NOTICES MUST BE MAILED BY OCTOBER 31). PLEASE REVIEW ALL SUBMITTALS FOR ACCURACY BEFORE SUBMITTAL.

 

OCTOBER - DECEMBER 11

PHASE I FOR PY1999 UPDATES. PLEASE REMEMBER THAT STATES WHO SUBMIT BETWEEN OCTOBER 1 AND DECEMBER 4 SHOULD NOT SEND IN UPDATES BECAUSE WE HAVE NO MASTER FILE AGAINST WHICH TO PROCESS. STATES THAT CHOOSE THE LATER SUBMITTAL DATE ARE RESPONSIBLE FOR PROCESSING ALL UPDATES INHOUSE BEFORE THE PY1999 SUBMITTALS ARE SENT TO OCSE.

 

DECEMBER 4

PY1999 SUBMITTALS DUE FROM STATES THAT ISSUE THEIR OWN PRE-OFFSET NOTICES.

 

DECEMBER 14

PHASE II FOR PY1999 UPDATES. PLEASE REMEMBER THAT NO PROCESSING IS DONE AT IRS FROM APPROXIMATELY THE SECOND WEEK IN DECEMBER UNTIL APPROXIMATELY THE THIRD WEEK IN JANUARY. STATES SHOULD NOTE THAT WHILE NO FEDERAL TAX REFUNDS WILL BE OFFSET DURING THIS TIMEFRAME, ADMINISTRATIVE OFFSETS MAY OCCUR. CUT-OFF DATE FOR REPORTING MODIFICATIONS/DELETIONS FOR CURRENT PROCESSING YEAR. THERE IS NO CUTOFF DATE FOR STATE PAYMENTS.

 

DECEMBER 14

OCSE'S CERTIFICATION FILE DUE TO FMS. (CASES FOR PY1999.)

 

DECEMBER 18

CUT-OFF DATE FOR REPORTING UPDATES FOR PROCESSING YEAR 1998, (MODIFICATIONS/DELETIONS FOR THE CURRENT PROCESSING YEAR). THERE IS NO CUT-OFF FOR STATE PAYMENTS. HOWEVER, THESE TOO WILL BE HELD FOR PROCESSING IN JANUARY.

 

JANUARY 18

FMS LOADS DEBTS FOR POTENTIAL OFFSET. FIRST UPDATES FOR THOSE CASES THAT HAVE BEEN ACCEPTED BY FMS AND HELD SINCE DECEMBER 14.

 

FEBRUARY - DECEMBER

MONTHLY COLLECTION REPORTS ARE SENT TO THE STATES. (OCSE IS EXPLORING THE POSSIBILITY OF REPORTING MORE FREQUENTLY. WE WILL KEEP YOU ADVISED.)

The following is a narrative description of the major reports.

1. Test Data Report

Purpose-This report is produced in two parts as a result of a Test Submittal processing. Part I (EDIT VALIDATION) will contain systems errors e.g., invalid SSN, name, State Code, and arrearage. Part II (UNACCOUNTABLES) will show records not matched on SSN and/or name on the IRS taxpayer master file. The errors may be corrected by the State Agency and included in the certified (final) submittal.

Schedule-Reports will be produced during June and July.

 

2. Certified (Final) Submittal Edit/Validation Report

Purpose-This report is produced as a result of State Certified submittals being run through OCSE edit processing program. The report provides individual error messages and summary statistics.

Schedule-Reports will be produced during October and November and mailed directly to the requesting State IV-D Agency (see EXHIBIT H for tape specifications.)

 

3. Modification/Deletion/State Payment Report

Purpose-This report is produced in two parts, the first part provides individual error messages of unsuccessful update attempts. Modification and deletes processed after December 16 may be reported as successful, however, the tax return may have been processed prior to receipt of the update (see EXHIBIT I for tape specifications.)

Schedule-Report will be produced during the update cycle, from November 1 throughout the processing year.

 

4. Modification/Deletion Report to Transfer State

Purpose-This report will be issued to the Transfer State. The cases included on this report can be either cases that have been transferred for administrative review, but are being UPDATED BY the submitting State; or cases that have been transferred for administrative review and are being updated by the transfer State (hard copy only.) Also all successful updates submitted by the Transfer State will be reported to the State which originally submitted the case.

Schedule-Reports will be produced during the update cycle, from November 1 throughout the processing year.

 

5. Certification Report

Purpose-This report is produced as a result of the cases accepted by FMS. The report will show a detailed listing of all cases accepted at FMS. (See EXHIBIT J for record specifications.)

Schedule-This report will be produced after the debts have been loaded for potential offset at FMS. The report will be provided to the State during the second or third week of February.

 

6. Unaccountable Report (No Match)

Purpose-This report is to provide the IV-D agency with a list of cases with no address information. This means that the State did not provide an address and OCSE's attempts to get the address were unsuccessful. States should attempt to find an address and resubmit the case. (See EXHIBIT K for tape specifications.)

Schedule-This report will be produced upon receipt of the unmatched file from IRS. This activity should occur during the 4th week of January.

 

7. Address/Collection/Adjustment Report

Purpose-This is to report all offset cases with the dollar amount collected. This report will be used by the IV-D agency to reconcile and distribute monies received from the Department of Health and Human Services, Program Support Center, Financial Management Service. This report will also be used by States for billing purposes as a detailed listing of cases offset. This Report also provides the current tax filing address for the cases offset (see EXHIBIT L tape specifications.)

Schedule-The report is to be produced monthly from the time of the initial IRS offset through the last FMS processing cycle (approximately February through December).

 

8. Collection/Adjustment Report to Transfer State

Purpose-This is to report offsets made on cases which have been transferred to the State with the order for an administrative review. This report should serve to assist States in determining whether they are entitled to incentives (hard copy).

Schedule-The report is to be produced monthly from the time of the initial FMS offset.

 

9. Name Change Report

Purpose-This report is to provide the IV-D Agency with a list of cases in which the name reported on the tax return form was not exactly the same as the name submitted by the State.

Schedule-The report is produced monthly in conjunction with the collection report.


 

EXHIBIT DIRECTORY

 

 

EXHIBIT A: Transmittal Certification 46
EXHIBIT C: Pre-Offset Notice 49
EXHIBIT D: Pre-Offset Notice Local Contact Phone/Address Specifications 50
EXHIBIT E: Request for Update of Transmittal 52
EXHIBIT F: FMS Offset Notice 53
EXHIBIT G: Statement of Service Fee 54
EXHIBIT H: Submission Edit/Validation Specifications and Update Edit/Validation 55
EXHIBIT J: Certification Record Specification 61
EXHIBIT K: Unaccountable Record Specification 62
EXHIBIT L: Monthly Collection/Address Report Specifications (OCSE Returns to State) 64
EXHIBIT M: Federal Income Tax Refund Offset Phone Contact Form 67
EXHIBIT N: Submission and Update Specifications (State Submits to OCSE) 68
EXHIBIT O: Sample Coding for Last Names 73
EXHIBIT P: IRS Addresses for Submittal (Specifications) 74
EXHIBIT Q: Negative Adjustment Billings 76
EXHIBIT R: Notification of Issuance of Pre-Offset, Offset Notice and Case Submittal 77
EXHIBIT S: State Contact for OCSE Issued Pre-Offset Notice 78
EXHIBIT T: Non-TANF Federal Income Tax Refund and Administrative Offset Information Form 79
EXHIBIT U: Child Support Enforcement Interstate Transmittals 81
EXHIBIT W: Offset Notice Address or Phone Number Change 87
EXHIBIT X: Certification of local/State address/phone 88
EXHIBIT Y: FIPS PUB 6-4 89
EXHIBIT Z: Procedure For Data Entry by Personal Computers 90
EXHIBIT AA: Notice of Intention to Issue Pre-Offset Notice 92
EXHIBIT BB: Electric Fund Transfer Form 93
EXHIBIT CC: Denial of Passport Form 95
EXHIBIT DD: Withdrawal of Passport Denial 97
EXHIBIT EE: Form 8379 - Injured Spouse Claim 99
 

 


 

EXHIBIT A

 

CERTIFICATION

Date:

TO:Office of Child Support Enforcement
Department of Health and Human Services
370 L'Enfant Promenade, S.W., Room 484
Washington, D.C. 20447

From:___________________, ___________________, ______________________

State IV-D Director Title Jurisdiction

Subject: Request for Collection of Delinquent Child and Spousal Support by Financial Management Service (FMS) through the Federal Tax Refund Offset process and/or the Federal Administrative Offset process and Request for Denial of Passport Applications

I certify that every request for collection meets the following requirements:

1.(A) For Federal Tax Refund Offset assistance cases the amount of the delinquency under a court or administrative order for child and spousal support is not less than $150, has been delinquent for 3 months or longer, and has been assigned to the State.

(B) For Federal Tax Refund Offset non-assistance cases the amount of the delinquency under a court or administrative order for child support is not less than $500 and the State is enforcing the order under section 454(4) of the Social Security Act (Act).

(C) For Administrative Offset cases, the amount of the delinquency under a court or administrative order for support (for a child and the parent with whom the child is living) is not less than $25 and there has been an assignment of the support rights to the State or the State is enforcing the order under section 454(4) of the Act.

2. This agency has verified the accuracy of the arrears, has a copy of the order and any modifications, has a copy of the payment record or an affidavit signed by the custodial parent attesting to the amount of support owed and has, in non-assistance cases, the custodial parent's current address.

3. We request that OCSE mail pre-offset notices to the obligors. _____yes _____no

4. This agency certifies that the pre-offset notice that we will issue the obligor meets the requirements set forth in the regulations, or that the address/phone information provided for the notice that OCSE will issue has been verified.

I certify that every request for passport denial meets the following requirements:

1. The amount of the arrearage of child support owed by the individual exceeds $5000.

2. This agency has verified the accuracy of the arrears, has a copy of the order and any modifications, and has a copy of the payment record or an affidavit signed by the custodial parent attesting to the amount of support owed.

3. This agency certifies that the notice that we will issue the obligor meets the requirements set forth in section 454(31) of the Act, or that the address/phone information provided for the notice that OCSE will issue has been verified.

Signature of IV-D Director or Designee __________________________

Agency Contact __________________________________________________

Agency Contact's Phone Number ___________________________________

 


 

EXHIBIT B

 

BLANK

 


 

EXHIBIT C

 

CHILD SUPPORT ENFORCEMENT DIVISION CHILD SUPPORT ENFORCEMENT DIVISION
DEPARTMENT OF REVENUE MS 01550 W 7TH AVE 4TH FL
550 W 7TH AVE 4TH FL ANCHORAGE AK 99501-6699
ANCHORAGE AK 99501-6699 PHONE(S): (907) 269-6900
INSTATE (800) 478-3300

NOVEMBER 17, 1997 ** CONTACT ADDRESS ABOVE **

48

MR AND/OR MS JOHN DOE
3331 ANYSTREET BLVD
ANYTOWN USA 99999-0123

SSN CASE NUMBER LOCAL ID PAST DUE AMOUNT CLAIMED

992-12-3456 33331Z97RN1 001 $520 (NON-TANF)

The agency identified above has determined that you owe past-due child and/or spousal support. Our records show that you owe at least the amount shown above. If this amount is not paid in full within 30 days from the date of this notice, it will be referred to the United States Department of the Treasury for collection by Administrative Offset and/or Federal Tax Refund Offset. Under Administrative Offset (31 U.S.C. Sec 3716), certain Federal payments which might otherwise be paid to you will be intercepted, either in whole or in part, to pay past-due child support and/or spousal support. Under Federal Tax Refund Offset (42 U.S.C. Sec 664; 26 U.S.C. Sec 6402) any Federal Income Tax Refund to which you may be entitled will be intercepted to satisfy your debt.

Effective October 1, 1997, if you owe arrearages of child support in an amount exceeding $5,000, as certified by the agency identified above, the Secretary of State will refuse to issue a passport to you, and may revoke, restrict or limit a passport which was previously issued. The amount of your past-due support will also be reported to consumer reporting agencies.

If you have been notified previously that your debt was being referred to the Financial Management Service for collection, this notice is to inform you that if your debt is not paid within 30 days from the date of this notice it will be subject to collection by Federal Tax and/or Administrative Offset. Your debt will remain subject to collection by Federal Tax Refund and/or Administrative Offset until it is paid in full. This means that Federal Tax Refunds and certain other Federal payments due to you now or in the future will be offset without further prior notice.

You have a right to contest our determination that this amount of past-due support is due, and you may request an administrative review. To request an administrative review you must contact us no later than DECEMBER 17, 1997 at the address or phone number listed above. If your support order was not issued in our state, we can conduct the review or, if you prefer, the review can be conducted in the state which issued the support order. If you request, we will contact that state within 10 days after we receive your request and you will be notified of the time and place of your administrative review by the state which issued the order. All requests for administrative review must be made by contacting the agency identified above.

If you are married, filing a joint income tax return, and you incurred this debt separately from your spouse, who has no legal responsibility for the debt and who has income and withholding and/or estimated tax payments, he or she may be entitled to receive his or her portion of any joint Federal Tax Refund. If your spouse meets these criteria he or she may receive his or her portion of the joint refund by filing a Form 8379 - Injured Spouse Claim and Allocation. Form 8379 should be attached to the top of the Form 1040 or 1040A when you file, or be filed according to other instructions as indicated on the Form 8379.

Important: If you owe current support and you fail to pay your obligation in full and on time, any arrears accruing due to payments missed after the date of this notice may be added to your debt and will be subject to collection by Federal Tax Refund and/or Administrative Offset without further notice. To determine additional amounts owed after the date of this notice, or the total amount past-due which the agency has submitted for collection, you may contact us at the address or phone number listed.

 


 

EXHIBIT D

 

PRE-OFFSET AND OFFSET NOTICE LOCAL CONTACT

PHONE/ADDRESS RECORD SPECIFICATIONs

NDM/CONNECT:DIRECT FROM STATE TO OCSE

1. Record Size LRECL= 220

2. GDG dataset name OCSE Use to receive Contact Addresses from state.

Dataset name = PTAX.NDM.ICONTACT.XX01(+1)

Where: Qualifier(s) Q1.Q2.Q3 = Constant use by OCSE

XX = State Code

 

RECORD SPECIFICATION

 

Field Name Position Length Criteria

State Code 1-22 Must be valid 2 character alpha State Code. (See EXHIBIT Y - FIPS PUB 6-3).

Local Code 3-53 Must be 3 digit Local Code which will also be used in individual submission. (FIPS code is recommended - See EXHIBIT Y - FIPS PUB 6-3).

Telephone Number 1 6-19 14 Local number must contain the area code and phone number of Agency contact. (Example: (301) 555-1212.

Extension 120-234 Extension for phone number 1. (Example: 55555)

Telephone Number 2 24-37 14 Instate Toll-free or collect number. Format example are:

(800) 555-1212. Toll-free

(202) 555-1212 Collect

Extension 2

State Agency Name 42-76 Must contain the name of the Office. (Example: Bureau of Child Support Enforcement). A reference to 'Child Support or 'Family

Support' must be included in each address. Do not use reference to 'IRS' or 'FMS' in the address. Specific names of contact persons should not be used. Titles are 0K.

Address Line 1 77-111 35 Line 1 through Line 4 should contain

Address Line 2 112-146 35 additional reference Names

Address Line 3 147-181 35 and address information.

Address Line 4 182-21635 Example: Line 1 through Line 4.

Field Name Position Length

Line 1 - Federal Tax Offset

Line 2 - State Office Building

Line 3 - 17223 Tera Place

Line 4 - Anywhere, MD 20852)

Filler 217-220 04

 


 

EXHIBIT E

 

(SAMPLE - USE STATE LETTERHEAD)

REQUEST FOR UPDATE OF TRANSMITTAL

TO:

OFFICE OF CHILD SUPPORT ENFORCEMENT
DEPARTMENT OF HEALTH AND HUMAN SERVICES
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447

FROM: Name, title and jurisdiction (requesting official)

SUBJECT: Request for update of cases from the State's certified submittal for Federal Tax Refund AND/OR ADMINISTRATIVE Offset Programs.

State of requests the deletion, modification or State payments, or case transfer for administrative review on the cases transmitted to OCSE using the transmission number listed below. All data provided is indicated according to processing year.

Transmission number :

Total number of Deletions, (by processing year) for cases submitted by this State:

Total number of Modifications, (by processing year) for cases submitted by this State:

Total dollar amount of Deletions, (by processing year) for cases submitted by this State:

Total number of State Payments, (by processing year):

Total dollar amount of State payments, (by processing year):

Total number of cases to be transferred:

Total number of Deletions for cases submitted by another State:

Total number of Modifications for cases submitted by another State:

Total dollar amount of deletions for cases submitted by another State:

 

 

 

(Signature of Requesting Official)

 

Agency Contact

Phone Number

 


 

EXHIBIT F

 

FMS OFFSET LETTER TO BE SENT TO THE NON-CUSTODIAL PARENT AT THE TIME OF OFFSET

ATTENTION: YOUR FEDERAL PAYMENT HAS BEEN REDUCED

[Date]

[Name]

[Address]

[Address]

 

Dear [Name]

Your payment due from the (paying agency) has been reduced by the amount shown below as "Amount of this Offset" to satisfy in whole or part your delinquent debt owed to the United States.

Your delinquent debt was referred to the U.S. Department of the Treasury by the (creditor agency) for this process, known as administrative offset. Administrative offset is authorized by the Debt Collection Act of 1982 and the Debt Collection Improvement Act of 1996.

The (Creditor agency) has previously notified you of the amount and nature of your debt and has made demand upon you for payment. You were notified of the (creditor agency's) intent to collect your debt by administrative offset if you failed to pay your debt, and the rights available to you. Your failure to resolve this debt has resulted in this offset. If you have any questions regarding this offset, or wish to avoid future offsets against your Federal payments by repaying any remaining debt, please contact:

 

[Agency Contact Name] at [phone number]

In the State of [xxx] call: [phone number]

Nationwide, call: [phone number]

[Referring Agency]

[Referring Agency Address]

[Referring Agency Address]

ACCT. No [Agency's Loan/Acct#]

 

Sincerely,

 

Debt Management Services
Financial Management Service, U.S. Department of the Treasury

 

PAYEE NAME: [Name] TYPE OF PAYMENT: [Check or EFT]

PAYMENT AMOUNT BEFORE OFFSET: [Amount]

AMOUNT OF THIS OFFSET: [amount] applied to delinquent debt

PAYMENT DATE: xx/xx/xxxx

_________________________________________________________________

FOR OFFICIAL USE ONLY:

CREDITOR AGENCY SITE TIN NO. OFFSET TRACE NO.

01 OR 123-45-0000 S00000291

 


 

EXHIBIT G

 

DEPARTMENT OF HEALTH AND HUMAN SERVICES
OFFICE OF CHILD SUPPORT ENFORCEMENT
STATEMENT OF SERVICE FEE

 

******************************************************************

* NAME OF STATE * PERIOD COVERED *

* * FEBRUARY **

******************************************************************

* ORGANIZATION PROVIDING SERVICE * KIND OF SERVICE *

* OFFICE OF CHILD SUPPORT ENFORCEMENT * INCOME TAX REFUND *

* ADMINISTRATIVE OFFSET *

******************************************************************

* ORGANIZATION *

******************************************************************

* DESCRIPTION OF SERVICE FEE * * SEE MONTHLY COLLECTION REPORT: FEB * * *

* 5 CASES OFFSET $6.80* EACH $34.00 * * --------- *

* TOTAL DEDUCTED FROM COLLECTIONS $34.00 * * * ******************************************************************

* PLEASE NOTE: IF YOU HAVE ANY QUESTIONS REGARDING THIS SERVICE *

* FEE, REFER TO: *

* OFFICE OF CHILD SUPPORT ENFORCEMENT *

* 370 L'Enfant Promenade, S.W. *

* WASHINGTON, D.C. 20447 *

* ATTN: SPECIAL COLLECTIONS UNIT *

* (202) 401-9389 *

******************************************************************

* STATEMENT PREPARED: FEBRUARY 25, 1999 *

* * * PLEASE KEEP A COPY OF THIS STATEMENT FOR YOUR RECORDS * * *

This amount is subject to change for the 1999 P.Y. When the Federal Tax Refund and Administrative Offset Programs are merged in 1999, there will be one fee for both Tax and Administrative offsets. OCSE will let you know when this fee is determined.

 


 

EXHIBIT H

 

SUBMISSION EDIT/VALIDATION AND UPDATE/EDIT VALIDATION

SPECIFICATIONS

NDM/Connect:Direct From OCSE To State

1. Record Size LRECL= 245

2. GDG dataset name state Use to receive REJECT CASES from OCSE.

Dataset name = Q1.Q2.Q3.Q4(+1)

Where:

Qualifier(s) Q1.Q2.Q3 = For state to use

Initial submission Q4 = OEDTSUB(+1) Mandatory

Phase I update Q4 = OBCUPD(+1) Mandatory

Phase II update Q4 = OEDTUPD(+1) Mandatory

 

Field Name Position Type Criteria

Submitting State 1-2 Alpha Must be valid FIPS 2 character alpha abbreviation for the State which initially submits the case for offset; must be constant throughout the file. Required. (See Exhibit Y - FIPS Pub 6-3).

Local Code 3-5 Numeric When used it must be three digit numeric local code. FIPS code is suggested (See Exhibit Y - FIPS Pub 6-3).

SSN 6-14 Numeric Must be valid Social Security number. Required.

Case Number 15-29 Alpha- Optional field for State use numeric only; numeric blanks acceptable.

Last Name 30-49 Alpha-

numeric. Must not be all blanks; start name in column 30, must be uppercase. No imbedded blanks or apostrophes. Required.

First Name 50-64 Alpha Must not be all blanks, start name in column 50. Imbedded blanks acceptable. Required.

 


 

EXHIBIT H (Page 2 of 6)

 

Field Name Position Type Criteria

Amount Owed 65-72 Numeric Whole dollar amounts only. No decimal points, dollar signs, commas or plus/minus signs.If amount submitted is at least $150 for TANF/foster care, the case will be subjected to Tax Refund Offset.

If amount submitted is at least $500 for Non-TANF, the case will subjected to Tax Refund Offset.

If amount submitted is at least $25, the case will subjected to Administrative Offset. Right justify and zero fill (Example: 1500.00=00001500). Required.

Transaction

Type 73 Alpha Blank = Initial Submission

A= Add New case

D= Delete

L= Change Submitting State Local

M= Modify Decrease or Increase

(indicate Replacement Amount)

R= Replace Offset Exclusion Indicator Type.

S= State Payment

T= Transfer for Administrative Review to state with the order.

Case Type

Indicator 74 Alpha A=TANF/foster care,

N=Non-TANF. Required.

 


 

EXHIBIT H (Page 3 of 6)

 

Field NamePosition TypeCriteria

Transfer

State 75-76 Alpha Must be valid FIPS 2 character alpha abbreviation; must be constant throughout the file. (See EXHIBIT Y - FIPS Pub 6-3). Required when State submits transfer. Required when transfer State updates a case.

Local Code

for transfer 77-79 Numeric When used it must be three digit numeric local code. FIPS code is suggested (See EXHIBIT Y - FIPS Pub 6-3).

Process Year 80-83 Alpha Year Tax Refund/Administrative payment was offset. For reporting state payment.(CCYY) Required.

Address Line 184-113 Alpha Non custodial Parent's mailing address line1 if state issues own Pre-offset notice. Required if state issues own notice.

Address Line2 114-143 Alpha Non custodial Parent's mailing address line 2.

City 144-168 Alpha Name of City

State Code 169-170 Alpha State Abbreviation

Zip Code 171-179 AN 9-Digit Zip Code

Date Issued 180-187 AN Required. When initially Pre-Offset submitting and adding new cases Notice if the state issues their own Pre-Offset Notices format is CCYYMMDD.

 


 

EXHIBIT H (Page 4 of 6)

 

Field Name Position Type Criteria

Offset 188-227 Alpha ADM = Exclude all Admin. Offset

Exclusion RET = Exclude Federal Retirement IndicatorSAL = Exclude Federal Salary

Type TAX = Exclude Tax Refund Offset

VEN = Exclude Vendor Payment/Misc.

PAS = Exclude Passport Denial

FIN = Exclude Financial Institution

Blanks = No Exclusion

Error Codes 228-239 A/N Up to six(6) 2-byte error codes.

Filler 240 245 Reserved. Space filled

 


 

EXHIBIT H (page 5 of 6)

 

Initial Submission/Weekly Update

OCSE REJECT CONTROL RECORD SPECIFICATION

(Last Record On File)

 

Field Name Position Length Criteria

Submitting State 1-2 2 Submitting state abbreviation.

Control 3-5 3 Enter constant "CTL".

TANF Accepted 6-14 9 Total TANF records accepted.

Right justify and zero fill.

TANF Rejected 15-23 9 Total TANF records rejected.

Right justify and zero fill.

Non-TANF Accepted 24-32 9 Total Non-TANF records accepted. Right justify and zero fill.

Non-TANF Rejected 33-41 9 Total Non-TANF records rejected. Right justify and zero fill.

Filler 42-245 204 Blank fill.

 


 

EXHIBIT H (Page 6 of 6)

 

ERROR CODES/ERROR CODE DESCRIPTIONS

01 State Code invalid (Submitting State)

02 SSN invalid

03 Last name invalid or blank

04 First name blank

05 Amount invalid

06 Duplicate

07 Invalid type code (must be 'A' or 'D' or 'L' 'M' or 'R' or 'S' or 'T' or Blank)

08 Amount greater than $50,000 (NOT USED)

09 Invalid case type indicator (must be 'A' or 'N')

10 Amount equals arrearage (NOT USED)

11 Amount increase arrearage (NOT USED)

12 SSN not on Master file

13 SSN not on Master for this state

14 Name does not agree

15 Deleted from Master File (NOT USED)

16 Amount changed on Master File (NOT USED)

17 No Record of offset

22 Transfer Accepted (NOT USED)

13 Invalid transfer State code

24 No transfer reported by submitting State

25 Incorrect case type

28 State payment accepted (NOT USED)

29 Local Code is blank (for type code 'L')

30 Submitting State's Local Code Changed on Master

(NOT USED)

32 Invalid Pre-Offset notice date.

33 Invalid exclusion indicators.

 


 

EXHIBIT J

 

CERTIFICATION RECORD SPECIFICATION

 

NDM/CONNECT:DIRECT FROM OCSE TO STATES

1. Record Size LRECL= 108

2. GDG dataset name state Use to receive certification cases from OCSE.

Dataset name = Q1.Q2.Q3.OCERTIFY(+1)

Where: Qualifier(s) Q1.Q2.Q3 = For state to use

OCERTIFY(+1)= Mandatory

Record Specifications

FIELD NAME POSITION TYPE

STATE ABBREVIATION 1-2 Alpha

LOCAL CODE 3-5 Alphanumeric

SSN 6-14 Alphanumeric

CASE NUMBER 15-29 Alphanumeric

LAST NAME 30-49 Alphanumeric

FIRST NAME 50-64 Alphanumeric

ARREARAGE 65-75 Numeric S9(9)V99

PRIORITY 76-77 Numeric

CASE TYPE INDICATOR 78 A=TANF and foster care,

N=Non-TANF

TRANSFER STATE 79-80 Alphanumeric

LOCAL CODE OF

TRANSFER STATE 81-83 Alphanumeric

FILLER 84-108 Alphanumeric

 


 

EXHIBIT K

 

UNACCOUNTABLE RECORD SPECIFICATIONS

 

NDM/CONNECT:DIRECT FROM OCSE TO STATES

1. Record Size LRECL= 108

2. GDG dataset name state Use to receive Unaccountable cases from OCSE.

Dataset name = Q1.Q2.Q3.OUNACC(+1)

Where: Qualifier(s)Q1.Q2.Q3 = For state to use

OUNACC(+1)= Mandatory

Record Specifications

FIELD NAME POSITION TYPE/DESCRIPTIONS

STATE ABBREVIATION 1-2 Alpha

LOCAL CODE 3-5 Alphanumeric

SSN 6-14 Alphanumeric

CASE NUMBER 15-29 Alphanumeric

LAST NAME 30-49 Alphanumeric

FIRST NAME 50-64 Alphanumeric

ARREARAGE 65-75 Numeric S9(9)V99

ERROR CODE 76-77 Alphanumeric

NAME CONTROL* 78-81 Alphanumeric

CASE TYPE INDICATOR 82 A=TANF and foster care,

N=Non-TANF

TRANSFER STATE 83-84 Alphanumeric

LOCAL CODE OF

TRANSFER STATE 85-87 Numeric

CORRECTED SSN 88-96 If error code is 31, this field contains the corrected SSN. For error code 18, 19 and 21, this will be filled with blanks.

FILLER 97-108 Alphanumeric

 


 

EXHIBIT K (Page 2 of 2)

 

ERROR

CODES ERROR/CODE DESCRIPTIONS

18 SSN not on the IRS Taxpayer Master File.

19 The first four characters of the last name do not match the IRS master file for this SSN.

20 Invalid combination of name and SSN**.

21 Record Not Available

31 SSN did not verify; However a corrected SSN was located by SSA.

 

*The first four characters of the name as reported by IRS.

**This code also incorporates SSN's placed in the invalid segment of the IRS file for other reasons such as the account is being reviewed by IRS, or other reasons which IRS will not disclose due to taxpayer confidentiality. Therefore if the State is confident that the correct name and SSN are being used, we encourage you to resubmit the case again next year. Bankruptcy is also no longer disclosed by IRS.

 


 

EXHIBIT L (Page 1 of 3)

 

MONTHLY COLLECTION/ADDRESS REPORT FOR PY-1999

(CALENDAR YEAR 1999)

 

MONTHLY COLLECTION/ADDRESS REPORT SPECIFICATIONS

OCSE RETURNS TO STATES

OCSE will use Connect:Direct to transmit files to states.

Record Specifications

 

FIELD NAME POSITION Descriptions

State Code 1 - 2 Submitting State Abbreviation

Local Code 3 - 5 Three Digit Numeric Code

Soc Sec Num 6 - 14 9 digit Social Security Number

Case Number 15 - 29 Case Identification Number

Last Name 30 - 49 Non custodial Parent's Last Name

First Name 50 - 64 Non custodial Parent's First Name

Arrearage 65 - 75 Arrearage Amount is in dollars and cents (2 decimal places)

Collection Amount 76 - 86 Offset Amount is in dollars and cents (2 decimal places)

Adjustment Amount 87 - 97 Amount IRS refunded to taxpayer (reported as positive)

Adjustment Year 98 - 101 Year of original offset (CCYY)

 


 

EXHIBIT L (Page 2 of 3)

 

FIELD NAME POSITION Descriptions

Tax Period For Offset 102 - 105 Four digit current Processing year(CCYY)

Return Indicator 106 - 106 Y = Joint return N = No

Case Type 107 - 107 A = TANF and foster care

N = Non-TANF

Transfer State 108 - 109 State conducting administrative review

Transfer local Code 110 - 112 Local code of transfer state

Names ** 113 -147 Names of Non custodial parent as it is reported by TOP

StreetAddress ** 148 - 182 Current mailing address

City and State ** 183 - 207 City and State of residence

Zip Code ** 208 - 216 9 Digit Zip Code

Type Offset ** 217 - 219 Tax = Tax Refund Offset

Administrative Offset Are:

Sal = Federal Salary

Ret = Federal Retirement

Ven = Vendor Payment

Filler 220 - 240 Spaces

 

** These fields will be blank filled for adjustment records.

(Collection Amount = 0)

 


 

EXHIBIT L (Page 3 of 3)

 

STATE TOTAL RECORD SPECIFICATION

(Last Record on File)

 

FIELD NAME POSITION Descriptions

State Code 1 - 2 Submitting state abbreviation

Filler 3 - 5 Blanks

Total 6 - 14 Contains *TOTAL*

Filler 15 - 34 Blanks

Adjustment Count 35 - 49 Number of adjustments

Collection Count 50 - 64 Number of collections

Arrearage Amount 65 - 75 Total arrearage amount on offsetted cases (dollars and cents)

Collection Amount 76 - 86 Total collection amount (dollars and cents)

Adjustment Amount 87 - 97 Total adjustment amount (dollars and cents)

Net Amount 98 -108 Net Amt = Coll Amt - Adj Amt (dollars and cents)

Filler 109 - 240 Blanks

 


 

EXHIBIT M

 

FEDERAL OFFSET CONTACT FORM

 

 

PLEASE RETURN BY AUGUST 21, 1998

 

SPECIAL COLLECTIONS UNIT
OFFICE OF CHILD SUPPORT ENFORCEMENT
370 L'ENFANT PROMENADE, S.W., Room 484
WASHINGTON, D.C. 20447

 

BELOW PLEASE LIST THOSE INDIVIDUALS WHO WE MAY CONTACT IN THE OFFSET UNIT AT YOUR STATE:

 

 

CONTACT NAME:__________________________________
__________________________________________________
__________________________________________________
__________________________________________________

 

PHONE NUMBERS: ___________________________ _____
__________________________________________________
__________________________________________________
__________________________________________________

 

ANY ADDITIONAL NOTES CONCERNING YOUR UNIT:

 


 

EXHIBIT N (Page 1 of 5)

 

SUBMISSION/UPDATE SPECIFICATIONS FOR FEDERAL TAX REFUND AND/OR ADMINISTRATIVE OFFSET FOR PY1999(Calendar Year 1999)

INPUT FILE SPECIFICATIONS

STATE SUBMITS TO OCSE

 

Submission Requirements

All submissions must use Connect:Direct to OCSE for submission/update to the Treasury Offset Program(TOP) for Debt Collection.

States will use Connect:Direct to transmit files to OCSE.

 

Input Record Specifications

All data records are required to be in the following format. (Records that deviate from the specified layout will NOT be forwarded to TOP).

 

Field Name Position Type Criteria

Submitting State 1-2 Alpha Must be valid FIPS 2 character alpha abbreviation for the State which initially submits the case for offset; must be constant throughout the file. Required. (See EXHIBIT Y - FIPS Pub 6-3).

Local Code 3-5 Numeric When used it must be three digit numeric local code. FIPS code is suggested (See EXHIBIT Y - FIPS Pub 6-3).

SSN 6-14 Numeric Must be valid Social Security number. Required.

Case Number 15-29 Alpha- Optional field for State use numeric only; numeric blanks acceptable.

Last Name 30-49 Alpha Must not be all blanks; start name in column 30, must be uppercase. No imbedded blanks or apostrophes. Required.

 


 

EXHIBIT N (Page 2 of 5)

 

Field Name Position Type Criteria

First Name 50-64 Alpha Must not be all blanks, start name in column 50. Imbedded blanks acceptable. Required.

Amount Owed 65-72 Numeric Whole dollar amounts only. No decimal points, dollar signs, commas or plus/minus signs.

If amount submitted is at least $150 for TANF/foster care, the case will be subjected to Tax Refund Offset.

If amount submitted is at least $500 for Non-TANF, the case will subjected to Tax Refund Offset.

If amount submitted is at least $25, the case will subjected to Administrative Offset.

Right justify and zero fill (Example: 1500.00=00001500). Required.

Transaction

Type 73 Alpha Blank = Initial Submission

A= Add New case

D= Delete

L= Change Submitting State Local

M= Modify Decrease or Increase

(indicate Replacement Amount)

*R= Replace Offset Exclusion Indicator Type.

S= State Payment

T= Transfer for Administrative Review to state with the order.

Case Type

Indicator 74 Alpha A=TANF/foster care,

N=Non-TANF. Required.

 


 

EXHIBIT N (Page 3 of 5)

 

Field Name Position Type Criteria

Transfer

State 75-76 **Alpha Must be valid FIPS 2 character alpha abbreviation; must be constant throughout the file. (See EXHIBIT Y - FIPS Pub 6-3). Required when State submits transfer. Required when transfer State updates a case.

Local Code for transfer 77-79 Numeric When used it must be three digit numeric local code. FIPS code is suggested (See EXHIBIT Y - FIPS Pub 6-3).

Process Year 80-83 Alpha-numeric Year Tax Refund/Administrative payment was offset. This is required only for reporting state payment.(CCYY)

Address Line1 84-113 ***Alpha- Non custodial Parent's mailing numeric address line1 if state issues own Pre-offset notice. Required if state issues own notice.

Address Line2 114-143 ***Alpha- Non custodial Parent's numeric mailing address line 2.

City 144-168 ***Alpha Name of City

State Code 169-170 ***Alpha State Abbreviation

Zip Code 171-179 ***AN 9-Digit Zip Code

Date Issued 180-187 AN Required. When initially

Pre-Offset submitting and adding new

Notice cases. If the state issues their own Pre-offset Notices, format is (CCYYMMDD)

 


 

EXHIBIT N (Page 4 of 5)

 

Field Name Position Type Criteria

Offset 188-227 **** Alpha ADM = Exclude all Admin. Offset

Exclusion RET = Exclude Federal Retirement Indicator SAL = Exclude Federal Salary

Type TAX = Exclude Tax Refund Offset

VEN = Exclude Vendor Payment/Misc.

PAS = Exclude Passport Denial

FIN = Exclude Financial Institution

Blanks = No Exclusion

 

Filler 228 245 Reserved. Space filled

 

* Transaction Code R, to replace Offset Exclusion Indicators Type, enter each exclusion indicator and a commas or space.  For Example: SAL,PAS,RET

** The term "Transfer State" will be used for interstate cases requiring an administrative review in the State with the order. When a case is referred for the review to the State with the order, the submitting State must notify OCSE through the update process that the case is being transferred. See update section for specific information.

*** If state mails own pre-offset notice they should provide an address. If they do not and OCSE cannot get an address from IRS, the case will be rejected by FMS.

**** These fields are for Transaction Type "A"(Add new cases)and they are optional.

If Offset Exclusion Indicator Type is TAX, the Amount Owed must be at least $25. Separate each exclusion indicator with a comma or space. For example: TAX,RET,PAS

 


 

EXHIBIT N (Page 5 of 5)

 

STATE CONTROL RECORD SPECIFICATION
(Last Record On File)

Field Name Position Length Criteria

Submitting State 1-2 2 Submitting state abbreviation.

Control 3-5 3 Enter constant "CTL".

TANF Count 6-14 9 Total TANF record count.

Right justify and zero fill.

Non-TANF Count 15-23 9 Total Non-TANF record count. Right justify and zero fill.

TANF Amount 24-34 11 Total TANF Amount. Whole dollar amount. No decimal points, dollar signs, commas or plus/minus signs. Right justify and zero fill.

Non-TANF Amount 35-45 11 Total Non-TANF Amount. Whole dollar amount. No decimal points, dollar signs, commas or plus/minus signs. Right justify and zero fill.

Filler 46-245 200 Blank fill.

 


 

EXHIBIT O

 

SAMPLE CODING FOR LAST NAME

When cases are submitted to the Offset Program the name and SSN is compared. Records that do not match the file will be rejected. Cases are matched against the SSN and the first letter of the surname and two of the next three letters. This ensures that cases are processed. The following samples demonstrate the proper manner in which to submit a last name. The last name is coded in columns 30-49 of the case record. Special attention should be given to columns 30-33 where the name-control is extracted.

NAME COLS. 30-33

John Brown BROW

John Di Angelo DIAN

John O'Neill ONEI

John En, Sr. EN

Abdullah Allar-Sid ALLA

Guillero M. Pachelo Livera PACH

Juan de la Rose y Obregon DELA

Jose Alvarado Nogales ALVA

Elena Torres vda de Conto CONT

Maria Riveria de Cruz CRUZ

Elisa de la Rosario-Rodriquez DELA

Monsita Gonzalez De Jesus GONZ

Juan De Jesus DEJE

Jose Del Valle DELV

Juan Rodriquez Santiago RODR

Pedro Torres-Lopez TORR

Pablo Cruz y Gonzalez CRUZ

Juan Lopez Corto LOPE

John A. El-Roy EL-R*

 

*A hyphen is the only acceptable special character.

 


 

EXHIBIT P

 

ADDRESS SPECIFICATIONS FROM OCSE TO STATES FOR USE BY THOSE STATES ISSUING THEIR OWN PRE-OFFSET NOTICES

RECORD FORMAT

FIELD NAME POSITION LENGTH DESCRIPTION

FILLER 1 1 FILLER

STATE CODE 2 2 STATE ABBREVIATION

CASE TYPE 4 1 A=TANF, N=NONTANF

SSN 5 9 SOCIAL SECURITY NUMBER

CASE ID 14 15 CASE ID NUMBER

FILLER 29 7 FILLER

LOCAL CODE 36 3 LOCAL CODE

OBLIGOR'S FULL NAME 39 45 FIRST NAME, LAST NAME

 


 

EXHIBIT P (Page 2 of 2)

 

STREET ADDRESS LINE 2 84 45 ADDITIONAL ADDRESS INFORMATION IF OBLIGOR LIVES IN A FOREIGN COUNTRY. THIS DATA ELEMENT IS BLANK IF OBLIGOR LIVES IN U.S.

STREET ADDRESS LINE 1 129 45 STREET ADDRESS OR P.O. BOX NUMBER

CITY AND STATE 174 45 CITY AND STATE

ZIP CODE 219 9 ZIP CODE

FILLER 228 36 SPACES

FIRST NAME AS INPUT 264 15 FIRST NAME SUBMITTED BY STATE

MIDDLE NAME 279 15 NOT USED, SPACE FILLED

LAST NAME 294 20 LAST NAME SUBMITTED BY STATES

YEAR OF ADDRESS 314 4 IRS NO LONGER PROVIDES THE DATE. THE FORMAT IS CCYY.

FILLER 318 6 SPACES TYPE OF ADDRESS RETURN 324 1 CONSTANT 'T'

 


 

EXHIBIT Q

 

DEPARTMENT OF HEALTH AND HUMAN SERVICES
OFFICE OF CHILD SUPPORT ENFORCEMENT
SPECIAL COLLECTIONS UNIT

BILLING FOR GOODS OR SERVICES PROVIDED

REIMBURSABLE PROJECTS

 

 NAME OF STATE PERIOD COVERED  1998
ORGANIZATION PROVIDE SERVICE OFFICE OF CHILD SUPPORT ENFORCEMENT KIND OF SERVICE

OVERPAYMENTS & ADJUSTMENTS

ORGANIZATION BILLED:

 

 

DESCRIPTION OF BILLING

FOR DETAILS, SEE MONTHLY COLLECTION REPORT

 

TOTAL CHARGES THIS INVOICE $3,049,680.00

PLEASE NOTE IF YOU HAVE ANY QUESTIONS REGARDING THIS BILL REFER TO OFFICE OF CHILD SUPPORT ENFORCEMENT

 

PLEASE FORWARD YOUR CHECK OR MONEY ORDER MADE PAYABLE TO

INTERNAL REVENUE SERVICE
FRESNO SERVICE CENTER
ATTN: BRANCH CHIEF, ACCOUNTING BR.
P.O. BOX 12067, STOP 42
FRESNO, CALIFORNIA 93776

PLEASE REMIT WITHIN 10 DAYS AFTER RECEIPT OF BILL

PLEASE RETURN A COPY OF THIS BILL WITH YOUR REMITTANCE

BILLING PREPARED 7/25/96

 


 

EXHIBIT R
(USE STATE LETTERHEAD)

TO: Special Collections Unit
Office of Child Support Enforcement
Department of Health & Human Services

 

FROM: Name, title and jurisdiction
(State IV-D Director)

SUBJECT: Notification of issuance of pre-offset notice, offset notice and case submittal.

This agency is requested to mail pre-offset notices to the non-custodial parent.

* YOU ARE NOT REQUIRED TO SUBMIT EXHIBIT S _________yes      _________no

OCSE will mail pre-offset notices to the non-custodial parent.

* YOU MUST SUBMIT EXHIBIT S _________yes __________no

This agency will submit local addresses for use on the FMS offset notice. Only those addresses or phone numbers that have changed since last year should be submitted at this time and only if they have not been submitted early this year. (EITHER WAY, ADDRESS & PHONE MUST BE PROVIDED BELOW).

_________yes_________no

This agency will submit cases by __________________September or _______________ by December 4, 1998.

* Those agencies not mailing their pre-offset notices or States who mail their own pre-offset notices but wish to be included in the earlier filing date, must transmit their case file by September 14, 1998.

STATE ADDRESS FOR FMS OFFSET NOTICE

PLEASE PROVIDE CURRENT ADDRESS AND PHONE NUMBER EVEN IF LOCAL ADDRESSES ARE USED

 

 

Phone Number:

Contact person for further information:
(for OCSE use, not for notice publication)

Phone Number:

 


 

EXHIBIT S

 

CONTACT POINT FOR OCSE ISSUED PRE-OFFSET NOTICE

For those States electing to have OCSE issue their pre-offset notices, address information is needed in order to successfully issue the required notice. In addition to the State giving OCSE this information, we also need to know the format desired by the State for the addresses used in the pre-offset notice. Essentially the State has three options: 1) State address as the return address with State address as contact point; 2) State address as the return address with a local address as contact point; 3) local address as the return address with local address as the contact point. Below is a layout of the form to be used. Please fill in the address locations with the relevant information. Where local addresses are to be used, simply write "local address" as these addresses are transmitted to OCSE via CONNECT:Direct. If there are no changes please state "No changes since the August 1998 local addresses were submitted." If there are five changes or less and they have not been corrected during the current year please submit each one separately on EXHIBIT W. If there are more than five unreported changes please submit them via CONNECT:Direct using the format in EXHIBIT D. Where State addresses are used, please fill in the correct address and telephone number. Finally, FMS needs confirmation of the official State address to be used on the offset notice. If local addresses are to be used on the offset notice, simply write "local address". Please provide this in the space below. This form should be completed and returned to OCSE by August 19.

 

RETURN ADDRESS

_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________

 

CONTACT POINT

______________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________

 

Phone Number:_______________________________________________

*PLEASE NOTE THAT EVEN IF LOCAL ADDRESSES ARE TO BE USED, YOU MUST PROVIDE THE STATE IV-D ADDRESS AND PHONE NUMBER ON EXHIBIT R.

Contact person for further information:__________________________
(for OCSE use, not for notice publication)

Phone Number:____________________________________________________

 


 

EXHIBIT T (Page 1 of 2)

 

Non-TANF Federal Income Tax Refund and Administrative Offset Information Form

 

 

Custodial Parent's Name_____________________SSN_______________________
Address_________________________________ Home Phone_________________
Employer ________________________________ Work Phone________________
Non-custodial parent's name______________________ SSN___________________
Address_________________________________ Home Phone_________________
Employer _______________________________ Work Phone__________________
Employer's Address___________________________________________________
Children's Name:
(1) _________________________________DOB ________________________
(2)_________________________________ DOB________________________
(3)_________________________________ DOB________________________
(4)_________________________________ DOB________________________

 

I have received public assistance in the past. YES NO

When? Where? (State)

Date of Support Order State Issuing Support

Order County or Court

Support Amount $ per

Date of last payment Current Amount of Arrears

$ from to

 

Conditions for Submittal

1) There is a valid court or administrative order for child support.

2) For Federal Income Tax Refund Offset the non-custodial parent must have a child support arrearage of at least $500. For Administrative Offset the non-custodial parent must have a child support arrearage of at least $25.

3) The non-custodial parent's social security number has been verified.

4) A fee of $25.00 may be charged for each case submitted for offset. (Applies to tax offset only).

5) There is no guarantee that monies will be collected on my behalf.

6) If an offset is made on my behalf, the State has the authority to hold the refund (if it involves a joint return) six months before sending the collection to me. (Applies to tax offset only.)

7) If the order for child support was not entered in this State, the State must have a copy of the order, any modifications, and a copy of the support payment record or a signed affidavit from me before the case can be submitted for offset.

8) I understand that if I have received public assistance in the past that any child support debt owed to the State may be satisfied first.

9) I understand that I am personally liable for the return of any amounts received by me which were paid erroneously, including any amounts which must be returned due to the filing of an amended return by the non-custodial parent's spouse.

I swear or affirm that the information provided in this form is true and correct to the best of my knowledge.

                                                                                                                                             
Signature                                                                                  Date

 

Witness Date

 


 

EXHIBIT V

 

Blank

 


 

EXHIBIT W

 

OFFICE OF CHILD SUPPORT ENFORCEMENT
DEPARTMENT OF HEALTH AND HUMAN SERVICES
SPECIAL COLLECTIONS UNIT -- ROOM 484
370 L'ENFANT PROMENADE, S.W.
WASHINGTON, D.C. 20447

 

OR

 

FAX TO: SPECIAL COLLECTIONS UNIT

FAX NO. 202-401-5553

 

FROM: NAME, TITLE AND JURISDICTION
(STATE IV-D DIRECTOR)

 

SUBJECT: OFFSET NOTICE ADDRESS OR PHONE NUMBER CHANGE

 

 

LOCAL CODE:_______________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________

ADDRESS CHANGE:___________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________

PHONE CHANGE:_____________________________
CONTACT PERSON IF FURTHER INFORMATION IS NEEDED:___________________________________
__________________________________________

 

(FOR OCSE USE ONLY)

PHONE NUMBER:_____________________________

 


 

EXHIBIT X

 

TO: Special Collections Unit
Office of Child Support Enforcement
370 L'Enfant Promenade, S.W. - Room 484
Washington, D.C. 20447

FROM: (Name, Title, State)

SUBJECT: CERTIFICATION OF VERIFICATION OF LOCAL/STATE ADDRESSES AND PHONE NUMBERS TO BE USED ON THE PRE-OFFSET AND FMS OFFSET NOTICE TO TAXPAYERS

I certify that every local address and corresponding phone number has been verified for accuracy. I certify that these addresses/phone numbers are correct to be issued on the OCSE issued pre-offset notice and/or the FMS Offset Notice. I also certify that the State address and phone number listed below is correct to use on the Pre-Offset and/or Offset Notice in the event that no local address/phone number has been provided.

PLEASE PRINT CORRECT STATE ADDRESS/PHONE NUMBER BELOW

____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

 

PHONE NUMBER _______________________________________

Signature of IV-D Director _______________________________________________

 


 

EXHIBIT Y

 

FIPS CODE DIRECTORY

To obtain a listing of the FIPS Code Directory (PUBLICATION - FIPS PUB 6-4 (8/31/90)), please contact:

Department of Commerce
National Institute of Standards and Technology
Resource Section
Gaithersburg, MD

PHONE: (301) 975-2816

OR

WRITE:

National Technical Information Service
5285 Port Royal Road
Springfield, VA 22161

OR

Refer to Superseded AT-90-06 dated 7/19/90

 


 

EXHIBIT Z (Page 1 of 2)

 

PERSONAL COMPUTER - DATA ENTRY FOR STATES

Cases for updates (deletions, modifications, state payments), may be entered via the PC. The State may submit cases only by CONNECT:Direct or PC. In order to submit cases via the PC, the State must have:

  • An IBM compatible PC.
  • Communications software package SIMPC - distributed by SIMWARE - this is the software package that OCSE's ACF computer center will support.

The State must contact the OCSE Special Collections Unit in order to receive a USER ID and a PASSWORD. Before either will be issued to a State, OCSE must have received a signed copy of the enclosed "USERS GUIDE TO GOOD SECURITY PRACTICES". This form may be faxed to the Special Collections Unit on (202) 401-5553. Please specify your name, State and a phone number where you may be contacted and that you are requesting this ID for the OFFSET Program.

Upon access to the data entry screen the States will need to enter the following:

TRANSACTION TYPE: (M=MOD D=DEL S=PAYMENT T=TRANSFER L=LOCAL)

PROCESSING YEAR: (2 NUMERIC DIGITS)

CERTIFY STATE:

STATE CODE: (STATE ABBREVIATION)

LOCAL CODE: (3 NUMERIC DIGITS)

SOC SEC NO: (9 NUMERIC DIGITS)

CASE TYPE: (MUST BE A=TANF N=NONTANF)

AMOUNT: (EXAMPLE; ENTER 1200 = 1,200)

CASE ID: (OPTIONAL)

OBLIGOR NAME:

LAST NAME: (USE TAB KEY TO MOVE CURSOR)

FIRST NAME:

STATE CONDUCTS ADMINISTRATIVE REVIEW:

TRANSFER STATE:

TRANSFER LOCAL:

Please contact the Special Collections Unit on (202) 401-9389 in order to answer any questions concerning the use of the personal computer and the communications software used.

 


 

EXHIBIT Z (Page 2 of 2)

 

(Security Form Letter)

 


 

EXHIBIT AA

 

(Please Use State Letterhead)

NOTICE OF INTENTION TO ISSUE PRE-OFFSET NOTICE

 

TO: Special Collections Unit
Office of Child Support Enforcement
Administration for Children and Families
370 L'Enfant Promenade, S.W., Room 484
Washington, D.C. 20447

________________1) Our State will issue our own pre-offset notices for processing year 1999. These notices will contain the required information as specified in the Action Transmittal, and will be mailed no later than October 30, 1998.

________________2) Our State requests OCSE to issue our pre-offset notices for the processing year 1999 at an estimated cost to us of $.45 per case (combined TANF and non-TANF, for a total estimated cost to mail pre-offset notices of ___________________.

States will have the option to have these fees subtracted from their title IV-D grant award by listing the amount on the first quarter of 1997's "Quarterly Report of Expenditures and Estimates" (OCSE-131) due January 29, 1999. Actual amounts due will be determined by OCSE and forwarded to the States in December 1998.

______________________________________________
Signature of IV-D Director

_______________________________________________
Designated Title

 


 

EXHIBIT BB (Page 1 of 2)

 

(Use your State letterhead)

OFFICE OF THE SECRETARY

Payment Information Form

Treasury Financial Communications System

The information requested on this form concerning your financial institution, and your account at that institution, should be available through your company's Treasurer or financial institution.

If your financial institution has on-line or off-line access to the Federal Reserve System, please complete only items 1 through 9 and 14. If your financial institution accesses the Federal Reserve Communications System through a correspondent financial institution, please complete all numbered items, except items 7 and 8.

1. Name of State Agency:______________________________________

2. Address of Agency:       ______________________________________
                                        ______________________________________

3. Contact Person: ______________________________________

4. Phone Number: ______________________________________
(Include Area Code)

5. Name of Financial Institution: ______________________________________

6. Address of Financial Institution:____________________________________

7. Financial Institution's 9-digit ABA Routing Number for Transfers of Funds:__________________________
(Complete only if your financial institution has access to Federal Reserve Communications System.

8. Telegraphic Abbreviation of Financial Institution:_______________________
(Complete only if your financial institution has access to Federal Reserve Communications System.

9. Financial Institution Account Number to be Credited with the Funds:_______________________________

10. Name of Correspondent Financial Institution through which your financial institution receives electronic funds transfers:_________________________________________________

11. Address of Correspondent Financial Institution:

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________

 


 

EXHIBIT BB (Page 2 of 2)

 

12. Correspondent Financial Institution's 12-digit ABA Routing Number for transfers of funds:______________________________

12-digit State employer identification number from the Office of Management Services at (202) 401-6603:
________________________________________________________________________

13. Telegraphic abbreviation of correspondent financial institution:___________________________________________

14. Signature and Title of Person Completing this form:

_________________________ _____________________ ___________
Signature                                                     Title                             Date

 

Comments:________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

Mail completed form to:

Special Collections Unit
Office of Child Support Enforcement
370 L'Enfant Promenade, S.W., Room 484
Washington, D.C. 20447

 


 

EXHIBIT CC

 


 

EXHIBIT DD

<STATE LETTERHEAD>

 

NOTICE OF WITHDRAWAL OF PASSPORT DENIAL

(Current date)

Office of Child Support Enforcement
Special Collections Unit
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447
FAX: (202) 401-5553

RE: (NAME OF NON-CUSTODIAL PARENT)

SSN: (Social SECURITY NUMBER)

DOB: (DATE OF BIRTH)

SEX: (MALE/FEMALE)

POB: (PLACE OF BIRTH)

TELEPHONE #: (OBLIGOR'S TELEPHONE NUMBER)

+-+

+-+ The above named noncustodial parent has made restitution with (State Child Enforcement Name) on (date). As a result of this payment, the applicant's child support arrearage falls below the $5,000 threshold criteria for passport denial. Therefore, our office requests that the Passport Office issue a passport to the above referenced individual if otherwise qualified. Our office has notified the applicant of this action. All modifications and updates to this case will be forwarded to the Federal Child Support Office Enforcement (OCSE) on (date).

+-+

+-+ The above named noncustodial parent due to extenuating circumstances and as a result of these circumstances, will not fall below the $5,000 threshold criteria for passport denial. However, the applicant has made satisfactory arrangements to pay the outstanding arrearage. Therefore, our office requests that the Passport Office issue a passport to the above referenced individual if otherwise qualified. Our office has notified the applicant of this action. All modifications and updates for this case will be forwarded to the Federal Child Support Office Enforcement (OCSE) on (date).

The applicant is aware that this action should not be construed as a satisfaction of the child support debt nor withdrawal of other applicable enforcement actions.

+-+

+-+ Other: (Provide explanation)

I hereby certify receipt of payment and request this applicant's eligibility for issuance of passport be restored.

----------------- ----------------------------

Date                     Authorized Representative

Child Support Enforcement Office

____________________________

Authorized Representative

Telephone #_________________

cc: Federal Office of Child Support Enforcement


(This document is referenced by Dear Colleague Letter: DCL-98-63)