Fee for Cases Certified to the Internal Revenue Service
Fee for Cases Certified to the Internal Revenue
January 24, 1980
TO:STATE AGENCIES ADMINISTERING THE CHILD SUPPORT ENFORCEMENT PLANS APPROVED UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT AND OTHER INTERESTED INDIVIDUALS
SUBJECT: Fee for Cases Certified to the Internal Revenue Service
PURPOSE:To remind States that the fee charged by the IRS for collecting certified delinquent child support payments is considered an administrative cost of the IV-D program and, as such, is eligible for an advance of Federal matching funds.
REGULATION REFERENCES: 45 CFR 302.71(a)(3) and 394.20(a)(1) and (b)(6)
BACKGROUND:Section 452(b) of the Social Security Act enables the State IV-D agencies to have delinquent child support cases certified for collection to the Internal Revenue Service pursuant to Section 6305 of the Internal Revenue Code. Under this section of the Act, and under regulations at 45 CFR 302.71(a)(3), the State agrees to reimburse the Federal government for costs involved in making the collection. The IRS set the fee at $122.50 per certification. This fee is considered a necessary expense in operating the State's child support enforcement program under title IV-D of the Act, and is therefore reimbursable at the 75% rate, as provided under regulation at 45 CFR 304.20(b)(6).
The State is billed for the fee shortly after the case is submitted to the IRS and it must be paid by the State regardless of the outcome of the IRS' collection efforts.
States could experience difficulty in arranging for payment of the fee in the absence of advances of Federal funds and, as a result, may be reluctant to participate in the IRS certification process.
ACTION:The anticipated amount of expenditures for IRS certification fees for a particular quarter should be included by each State on Form OCSE-65, "Quarterly Estimate of Expenditures", for that upcoming quarter. The actual expenditures incurredfor these fees should be included by each State in the appropriate space on Form OCSE-OA-41.17, "Statement of Expenditures for Child Support Enforcement".
Including these expenditures in the regular grant award process will provide States with an advance of funds to be used for the certification fees and will lessen any burden the States may incur in participating in this process.
EFFECTIVE DATE: This procedure may be used immediately.
INQUIRES TO: Regional Representatives, OCSE.
Louis B. Hays
Office of Child Support