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Offset of Tax Refund Payments to Collect Past-Due Support Interim Final Rule

DCL-15-21

Published: December 30, 2015

DEAR COLLEAGUE LETTER

DCL-15-21

DATE:  December 30, 2015

TO:  ALL STATE AND TRIBAL IV-D DIRECTORS

RE:  Offset of Tax Refund Payments to Collect Past-Due Support Interim Final Rule 

ATTACHMENTIRS Interim Final Rule:  Offset of Tax Refund Payments to Collect Past-Due Support as published in the Federal Register on December 30, 2015 (Vol. 80 FR 81463)

Dear Colleague:

We are pleased to report that the Department of Treasury (Treasury), Internal Revenue Service (IRS), and the Bureau of the Fiscal Service (Fiscal Service) published an interim final rule amending its regulation governing the offset of tax refund payments to collect past-due child support obligations.  This rule will limit the time period during which Treasury may recover erroneous tax refund offset collections from states in instances where the states have already forwarded such funds to custodial parents as required or as authorized by applicable laws. This amendment provides a six-month time limit from the offset date to recover and recoup erroneous offsets from states.  After the six-month period, Fiscal Service may not deduct the amount of an erroneous payment from a state’s future collections if the state has already forwarded the offset funds to the family. 

All comments to the rule must be received by February 29, 2016.  To submit a comment, see instructions in the interim final rule.  The interim final rule will become effective January 1, 2016.   

As mentioned in the rule, IRS and Fiscal Service is committed to continue its work with the child support program to assess the impact of this interim final rule and to identify potential improvements in the tax offset process. Once sufficient data regarding implementation of this new rule is available, but in no case later than 2 years, Treasury will work with us to consider further reduction in the time limit placed upon it for seeking recoupment from states.

We will schedule a call with child support agencies to review the interim final rule and discuss its impact.  Thank you for your efforts and support.  Please contact the Federal Collections Team at scollections@acf.hhs.gov if you have questions.

Sincerely,

Vicki Turetsky
Commissioner
Office of Child Support Enforcement

 

Last Reviewed: May 10, 2019

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