Establishing and Enforcing Child Support Orders — Page 5 of 8

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Income Tax Refund Intercept Programs

This enforcement procedure is used to intercept state and federal income tax refunds owed to the noncustodial parent. Intercepted refunds are applied to past due support owed to the County of Sonoma or to the nonwelfare custodial parent. As of October 1, 1998, state income tax refund intercepts may be applied to current support obligations. Federal income tax refund intercepts must continue to be applied to support arrearage.

To qualify for submission to the program, the following criteria apply:

• There is an existing court order and there has been an assignment of support rights to the county or the county is providing services to the nonwelfare family.
• The past due support must be at least three (3) months delinquent.
• The past due support must be due a minor child.
• Past due spousal support can be included in the amount submitted when a single order exists for both spousal and child support and the individual to whom the support is owed resides with the minor children.
• Public assistance cases must have a $150 minimum arrearage; nonwelfare cases must have a $500 minimum arrearage.

The DCSS must submit all cases meeting the above criteria. The NP is sent a notice of the amount of past due support that has been submitted to the income tax refund intercept program. He or she is given the opportunity to dispute the amount and/or bring the account current. Federal regulations require the DCSS to update any decrease in the submission amount on a monthly basis. If a tax refund is due the NP, the amount will be intercepted and forwarded to the DCSS. The NP will be notified of the intercepted amount and instructed to contact the DCSS if he or she has any questions.

IRS Credit Adjustments

When intercepted funds are applied to nonwelfare arrears and the NP or his or her current spouse files an amended return, an adjustment (reduction) of the original intercepted amount may be made by the IRS. (Example: Say for instance that, the NP and his wife reside out of state. For the last year only his wife has been employed. They are expecting a tax refund based solely on the wife's earnings. They file their tax return jointly as a married couple and the tax refund is intercepted by the DCSS. The wife is unhappy with this because the refund was all her money and it is not her responsibility to pay child support for her husband's children; she therefore files an amended injured spouse return.

If they do not reside in one of the seven community property states, the IRS will uphold the amended return and take the tax refund back from the DCSS. If an adjustment is made, and the original intercepted amount was sent to the CP, he or she is responsible to return the portion of the funds that were adjusted (taken back) by the IRS.

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