I
106TH CONGRESS
1ST SESSION
H. R. 1488
To amend the Internal Revenue Code of 1986 and the Social Security Act
to repeal provisions relating to the State enforcement of child support
obligations and the disbursement of such support and to require the
Internal Revenue Service to collect and disburse such support through
wage withholding and other means.
IN THE HOUSE OF REPRESENTATIVES
APRIL 20, 1999
Mr. HYDE (for himself and Ms. WOOLSEY) introduced the following bill; which
was referred to the Committee on Ways and Means, and in addition to
the Committee on the Judiciary, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 and the Social
Security Act to repeal provisions relating to the State
enforcement of child support obligations and the dis-
bursement of such support and to require the Internal
Revenue Service to collect and disburse such support
through wage withholding and other means.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Compassion for Chil-
dren and Child Support Enforcement Act of 1999’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Over one quarter of the Nation’s children
live in a household where only one of their parents
is present.
(2) Forty percent of these children are not yet
eligible for child support because paternity has not
been established or a support order has not been
issued.
(3) Sixty percent of these children have a sup-
port order, but only half actually receive any sup-
port.
(4) Of those with orders, half receive the full
amount ordered, one-quarter receive some of the
amount ordered; and one-quarter receive nothing.
The problem of nonpayment is particularly acute in
cases where the parents live in different States.
Today, approximately one-third of all cases are
interstate in nature.
(5) As a result, too many children live in pov-
erty or near poverty and are unable to have the kind
of childhood which allows them to grow into healthy,
productive citizens. Studies show that, in many fam-
ilies where child support is not paid, children go
hungry, lose access to health care, lack appropriate
winter clothing and can’t participate in school activi-
ties. Their families often face a housing crisis, and
inability to afford child care creates many latch-key
children.
(6) To show compassion for these children by
establishing and enforcing child support awards for
them is a high national priority.
(7) To undertake this task would require a
huge commitment of judicial time and resources.
While all cases take time and resources, interstate
cases involve the time and resources of two or more
jurisdictions and are, therefore, particularly trou-
bling.
(8) This commitment of resources would be un-
necessary if better, nonjudicial ways could be found
for handling some of these matters.
(9) The Department of the Treasury is in a
unique position to help address these problems. By
taking over responsibility for enforcing all child sup-
port orders through routine withholding of support
from obligated parents and use of the enforcement
tools at its disposal to collect from recalcitrant obli-
gors, the Department of the Treasury would greatly
reduce the need for judicial resources of the States
that are now devoted to child support enforcement.
(10) This, in turn, would free up judicial re-
sources to focus on establishing paternity and sup-
port orders and lead to a vastly improved child sup-
port enforcement system.
(11) Moving child support enforcement respon-
sibilities to the Department of the Treasury will en-
hance the role of the Federal judiciary and the De-
partment of Justice in prosecuting truly egregious
cases of failure to pay child support.
SEC. 3. ASSIGNMENT TO INTERNAL REVENUE SERVICE OF
RIGHT TO COLLECT CHILD SUPPORT; AVAIL-
ABILITY OF CHILD SUPPORT INFORMATION
TO THE INTERNAL REVENUE SERVICE; NO-
TICE TO PARENTS OF SUPPORT COLLECTION
AND DISBURSEMENT OPTIONS.
(a) ASSIGNMENT TO INTERNAL REVENUE SERVICE
OF
RIGHT
TO
COLLECT
CHILD
SUPPORT.—Section
466(a) of the Social Security Act (42 U.S.C. 666(a)) is
amended by inserting after paragraph (19) the following:
‘‘(20) Procedures which—
‘‘(A) require any individual with the right
to collect child support pursuant to an order
issued or modified in the State (whether before
or after the effective date of this paragraph) to
be presumed to have assigned to the Internal
Revenue Service the right to collect such sup-
port, unless the individual affirmatively elects to
retain such right at any time; and
‘‘(B) allow any individual who has made
the election referred to in subparagraph (A) to
rescind or revive such election at any time.’’.
(b) TRANSMISSION OF CHILD SUPPORT INFORMA-
TION TO THE FEDERAL CASE REGISTRY OF CHILD SUP-
PORT ORDERS.—
(1) IN GENERAL.—Section 466(a) of the Social
Security Act (42 U.S.C. 666(a)), as amended by
subsection (a) of this section, is amended by insert-
ing after paragraph (20) the following:
‘‘(21)(A) Procedures which require any State
court or administrative agency that issues or modi-
fies (or has issued or modified) a child support order
to transmit an abstract of the order to the Federal
Case Registry of Child Support Orders established
under section 453(h), on the later of—
‘‘(i) the date the order is issued or modi-
fied; or
‘‘(ii) the effective date of this paragraph.
‘‘(B)(i) The abstract of a child support order
shall include a record of—
‘‘(I) the amount of monthly (or other peri-
odic) support owed under the order, and other
amounts (including arrearages, interest or late
payment penalties, and fees) due or overdue
under the order;
‘‘(II) any amount described in subclause
(I) that has been collected by a State;
‘‘(III) the distribution by a State of such
collected amounts;
‘‘(IV) the birth date of any child for whom
the order requires the provision of support; and
‘‘(V) any action which has been taken to
enforce the order.
‘‘(ii) The abstract of a child support order shall
use standardized data elements for both parents
(such as names, social security numbers and other
uniform identification numbers, dates of birth, and
case identification numbers), and contain such other
information (such as on case status) as the Sec-
retary may require.
‘‘(C) Such procedures shall require the State
agency administering the State program under this
part to notify the Federal Case Registry of Child
Support Orders of any expiration of any child sup-
port order an abstract of which has been transmitted
by the State pursuant to subparagraph (A).’’.
(2) 
CONFORMING
AMENDMENT.—Section
453(h)(1) of such Act (42 U.S.C. 653(h)(1)) is
amended by striking ‘‘abstracts of support orders
and other information described in paragraph (2)
with respect to each case in each State case registry
maintained pursuant to section 454A(e), as fur-
nished (and regularly updated), pursuant to section
454A(f), by State agencies administering programs
under this part’’ and inserting ‘‘child support order
abstracts transmitted pursuant to section 466(a)(21)
and other information described in paragraph (2)
with respect to each case in the registry’’.
(c) NOTICE TO PARENTS OF SUPPORT COLLECTION
AND DISBURSEMENT OPTIONS.—Section 466(a)(20) of
the Social Security Act (42 U.S.C. 666(a)(20)), as added
by subsection (a) of this section, is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(C) require that, at the time a suport
order is issued or modified in the State, the
parties to the order are provided with notice of
how collection and disbursement of support pur-
suant to the order will be made if the election
referred to in subparagraph (A) is not made,
and to whom to address any complaints or
questions regarding such collections or dis-
bursements.’’.
SEC. 4. COLLECTION AND DISBURSEMENT OF CHILD SUP-
PORT BY INTERNAL REVENUE SERVICE.
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 (relating to miscellaneous provisions)
is amended by adding at the end thereof the following new
sections:
‘‘SEC. 7527. COLLECTION OF CHILD SUPPORT.
‘‘(a) EMPLOYEE TO NOTIFY EMPLOYER OF CHILD
SUPPORT OBLIGATION.—
‘‘(1) IN GENERAL.—Each employee shall speci-
fy, on each withholding certificate furnished to such
employee’s employer—
‘‘(A) the monthly amount (if any) of each
child support obligation of such employee, and
‘‘(B) the TIN of the individual to whom
each such obligation is owed.
‘‘(2) WHEN CERTIFICATE FILED.—In addition
to the other required times for filing a withholding
certificate, a new withholding certificate shall be
filed within 30 days after the date of any court or
administrative order which changes the information
specified under paragraph (1).
‘‘(3) PERIOD
CERTIFICATE
IN
EFFECT.—Any
specification under paragraph (1) shall continue in
effect until another withholding certificate takes ef-
fect which specifies a change in the information
specified under paragraph (1).
‘‘(4) AUTHORITY TO SPECIFY SMALLER CHILD
SUPPORT AMOUNT.—In the case of an employee who
is employed by more than 1 employer for any period,
such employee may specify less than the monthly
amount described in paragraph (1)(A) to each such
employer so long as the total of the amounts speci-
fied to all such employers is not less than such
monthly amount.
‘‘(b) CERTAIN OBLIGATIONS EXEMPT.—This section
shall not apply to a child support obligation for any month
if the individual to whom such obligation is owed has so
notified the Secretary and the individual owing such obli-
gation more than 30 business days before the beginning
of such month.
‘‘(c) EMPLOYER OBLIGATIONS.—
‘‘(1) REQUIREMENT
TO
DEDUCT
AND
WITH-
HOLD.—
‘‘(A) IN GENERAL.—Every employer who
receives a certificate under subsection (a) that
specifies that the employee has a child support
obligation for any month shall deduct and with-
hold from the wages (as defined in section
3401(a)) paid by such employer to such em-
ployee during each month that such certificate
is in effect an additional amount equal to the
amount of such obligation or such other amount
as may be specified by the Secretary under sub-
section (d).
‘‘(B) LIMITATION
ON
AGGREGATE
WITH-
HOLDING.—In no event shall an employer de-
duct and withhold under this section from a
payment of wages an amount in excess of the
amount of such payment which would be per-
mitted to be garnished under section 303(b) of
the Consumer Credit Protection Act.
‘‘(2) NOTICE TO SECRETARY.—
‘‘(A) IN GENERAL.—Every employer who
receives a withholding certificate shall, within
30 business days after such receipt, submit a
copy of such certificate to the Secretary.
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply to any withholding certificate
if—
‘‘(i) a previous withholding certificate
is in effect with the employer, and
‘‘(ii) the information shown on the
new certificate with respect to child sup-
port is the same as the information with
respect to child support shown on the cer-
tificate in effect.
‘‘(3) WHEN WITHHOLDING OBLIGATION TAKES
EFFECT.—Any withholding obligation with respect
to a child support obligation of an employee shall
commence with the first payment of wages after the
certificate is furnished.
‘‘(d) SECRETARY TO VERIFY AMOUNT OF CHILD
SUPPORT OBLIGATION.—
‘‘(1) VERIFICATION
OF
INFORMATION
SPECI-
FIED ON WITHHOLDING CERTIFICATES.—Within 20
business days after receiving a withholding certifi-
cate of any employee, or a notice from any person
claiming that an employee is delinquent in making
any payment pursuant to a child support obligation,
the Secretary shall determine whether the informa-
tion available to the Federal Case Registry of Child
Support Orders established under section 453(h) of
the Social Security Act indicates that such employee
has a child support obligation.
‘‘(2) EMPLOYER
NOTIFIED
IF
INCREASED
WITHHOLDING IS REQUIRED.—If the Secretary de-
termines that an employee’s child support obligation
is greater than the amount (if any) shown on the
withholding certificate in effect with respect to such
employee, the Secretary shall, within 20 business
days after such determination, notify the employer
to whom such certificate was furnished of the cor-
rect amount of such obligation, and such amount
shall apply in lieu of the amount (if any) specified
by the employee with respect to payments of wages
by the employer after the date the employer receives
such notice.
‘‘(3) DETERMINATION OF CORRECT AMOUNT.—
In making the determination under paragraph (2),
the Secretary shall take into account whether the
employee is an employee of more than 1 employer
and shall appropriately adjust the amount of the re-
quired withholding from each such employer.
‘‘(e) CHILD SUPPORT OBLIGATIONS REQUIRED TO
BE PAID WITH INCOME TAX RETURN.—
‘‘(1) IN GENERAL.—The child support obliga-
tion of any individual for months ending with or
within any taxable year shall be paid—
‘‘(A) not later than the last date (deter-
mined without regard to extensions) prescribed
for filing his return of tax imposed by chapter
1 for such taxable year, and
‘‘(B)(i) if such return is filed not later
than such date, with such return, or
‘‘(ii) in any case not described in clause (i),
in such manner as the Secretary may by regula-
tions prescribe.
‘‘(2) 
CREDIT
FOR
AMOUNT
PREVIOUSLY
PAID.—The amount required to be paid by an indi-
vidual under paragraph (1) shall be reduced by the
sum of—
‘‘(A) the amount collected under this sec-
tion with respect to periods during the taxable
year, plus
‘‘(B) the amount (if any) paid by such in-
dividual under section 6654 by reason of sub-
section (f)(3) thereof for such taxable year.
‘‘(f) FAILURE TO PAY AMOUNT OWING.—
‘‘(1) COLLECTION
AUTHORITY.—If an indi-
vidual fails to pay the full amount required to be
paid under subsection (e) on or before the due date
for such payment, the Secretary shall assess and col-
lect the unpaid amount in the same manner, with
the same powers, and subject to the same limitations
applicable to a tax imposed by subtitle C the collec-
tion of which would be jeopardized by delay.
‘‘(2) SHORTFALL IN PAYMENTS.—For purposes
of paragraph (1) and subsection (i), if the taxpayer
would have a deficiency for the taxable year were the
amount required to be paid under subsection (e)
treated as tax imposed by chapter 1, such deficiency
shall be treated as attributable to a failure to pay
the full amount required to be paid under subsection
(e) to the extent thereof.
‘‘(g) CREDIT OR REFUND FOR WITHHELD CHILD
SUPPORT IN EXCESS OF ACTUAL OBLIGATION.—There
shall be allowed as a credit against the taxes imposed by
subtitle A for the taxable year an amount equal to the
excess (if any) of—
‘‘(1) the aggregate of the amounts described in
subparagraphs (A) and (B) of subsection (e)(2),
over
‘‘(2) the actual child support obligation of the
taxpayer for such taxable year.
The credit allowed by this subsection shall be treated for
purposes of this title as allowed by subpart C of part IV
of subchapter A of chapter 1.
‘‘(h) CHILD SUPPORT TREATED AS TAXES.—
‘‘(1) IN GENERAL.—For purposes of penalties
and interest related to failure to deduct and with-
hold taxes, amounts required to be deducted and
withheld under this section shall be treated as taxes
imposed by chapter 24.
‘‘(2) OTHER RULES.—Rules similar to the rules
of sections 3403, 3404, 3501, 3502, 3504, and 3505
shall apply with respect to child support obligations
required to be deducted and withheld.
‘‘(3) SPECIAL RULE FOR COLLECTIONS.—For
purposes of collecting any unpaid amount which is
required to be paid under this section—
‘‘(A) paragraphs (4), (6), and (8) of sec-
tion 6334(a) (relating to property exempt from
levy) shall not apply, and
‘‘(B) there shall be exempt from levy so
much of the salary, wages, or other income of
an individual as is being withheld therefrom in
garnishment pursuant to a judgment entered by
a court of competent jurisdiction for the sup-
port of his minor children.
‘‘(i) TREATMENT OF ARREARAGES UNDER CHILD
SUPPORT OBLIGATIONS NOT SUBJECT TO SECTION FOR
PRIOR PERIOD.—If—
‘‘(1) this section did not apply to any child sup-
port obligation by reason of subsection (b) for any
prior period, and
‘‘(2) there is a legally enforceable past-due
amount under such obligation for such period,
then such past-due amount (and any penalties and interest
with respect to such amount as of the close of such period)
shall be treated for purposes of this section as owed for
the first month that this section applies to such obligation.
‘‘(j) DEFINITIONS AND SPECIAL RULES.—
‘‘(1) DEFINITIONS.—For purposes of this
section—
‘‘(A) WITHHOLDING
CERTIFICATE.—The
term ‘withholding certificate’ means the with-
holding exemption certificate used for purposes
of chapter 24.
‘‘(B) BUSINESS DAY.—The term ‘business
day’ means any day other than a Saturday,
Sunday, or legal holiday (as defined in section
7503).
‘‘(2) TIMELY MAILING.—Any notice under sub-
section (c)(2) or (d)(2) which is delivered by United
States mail shall be treated as given on the date of
the United States postmark stamped on the cover in
which such notice is mailed.
‘‘(k) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary or appropriate to
carry out the purposes of this section.’’
‘‘SEC. 7528. DISBURSEMENT OF CHILD SUPPORT COLLEC-
TIONS.
‘‘As soon as practicable after the Secretary receives
an amount paid under section 7527 that is attributable
to a child support obligation owed with respect to a family,
the Secretary shall, using information in the Federal Case
Registry of Child Support Orders established under sec-
tion 453(h) of the Social Security Act, ascertain the iden-
tity of the family and distribute the amount as follows:
‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the
case of a family receiving assistance from a State,
the Secretary shall—
‘‘(A) pay to the State the State share of
the amount so collected; and
‘‘(B) retain, or distribute to the family, the
Federal share of the amount so collected.
In no event shall the total of the amounts paid to
the State with respect to a family and the amounts
retained by the Federal Government with respect to
the family, under this paragraph, exceed the total of
the amounts that have been paid to the family as as-
sistance by the State, except that the total amount
distributed to families under this paragraph during
a fiscal year shall not exceed the total of the
amounts paid under section 7527 during the fiscal
year minus any credits allowed under section
7527(g) during the fiscal year.
‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS-
SISTANCE.—In the case of a family that formerly re-
ceived assistance from a State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To
the extent that the amount so collected does not
exceed the amount required to be paid to the
family for the month in which collected, the
Secretary shall distribute the amount so col-
lected to the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the
extent that the amount so collected exceeds the
amount required to be paid to the family for
the month in which collected, the Secretary
shall distribute the amount so collected as fol-
lows:
‘‘(i) DISTRIBUTION
OF
ARREARAGES
THAT
ACCRUED
AFTER
THE
FAMILY
CEASED TO RECEIVE ASSISTANCE.—
‘‘(I) PRE-EFFECTIVE DATE.—Ex-
cept as provided in subclause (II), the
provisions of this section (other than
subsection (b)(1)) as in effect and ap-
plied on the day before the date of the
enactment of section 302 of the Per-
sonal Responsibility and Work Oppor-
tunity Act Reconciliation of 1996
shall apply with respect to the dis-
tribution of support arrearages that—
‘‘(aa) accrued after the fam-
ily ceased to receive assistance
from the State, and
‘‘(bb) are collected before
the 1st day of the 1st fiscal year
that begins after the effective
date of this section.
‘‘(II) POST-EFFECTIVE
DATE.—
With respect to the amount so col-
lected on or after the 1st day of the
1st fiscal year that begins after the
effective date of this section:
‘‘(aa) IN
GENERAL.—The
Secretary shall first distribute
the amount so collected (other
than any amount described in
clause (iv)) to the family to the
extent necessary to satisfy any
support arrearages with respect
to the family that accrued after
the family ceased to receive as-
sistance from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED
TO
THE
FAMILY.—
After the application of division
(aa) and clause (ii)(II)(aa) with
respect to the amount so col-
lected, the Secretary shall retain
the Federal share of the amount
so collected, and pay to the State
the State share of the amount so
collected, but only to the extent
necessary to reimburse amounts
paid to the family as assistance
by the State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER
TO
THE
FAMILY.—
To the extent that neither divi-
sion (aa) nor division (bb) applies
to the amount so collected, the
Secretary shall distribute the
amount to the family.
‘‘(ii) DISTRIBUTION OF ARREARAGES
THAT ACCRUED BEFORE THE FAMILY RE-
CEIVED ASSISTANCE.—
‘‘(I) PRE-EFFECTIVE DATE.—Ex-
cept as provided in subclause (II), the
provisions of this section (other than
subsection (b)(1)) as in effect and ap-
plied on the day before the date of the
enactment of section 302 of the Per-
sonal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996
shall apply with respect to the dis-
tribution of support arrearages that—
‘‘(aa) accrued before the
family received assistance from
the State; and
‘‘(bb) are collected before
the 1st day of the 1st fiscal year
that begins after the effective
date of this section.
‘‘(II) POST-EFFECTIVE
DATE.—
With respect to the amount so col-
lected on or after the 1st day of the
1st fiscal year that begins after the
effective date of this section:
‘‘(aa) IN
GENERAL.—The
Secretary shall first distribute
the amount so collected (other
than any amount described in
clause (iv)) to the family to the
extent necessary to satisfy any
support arrearages with respect
to the family that accrued before
the family received assistance
from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED
TO
THE
FAMILY.—
After the application of clause
(i)(II)(aa) and division (aa) of
this subclause with respect to the
amount so collected, the Sec-
retary shall retain the Federal
share of the amount so collected,
and pay to the State the State
share of the amount so collected,
but only to the extent necessary
to reimburse amounts paid to the
family as assistance by the State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER
TO
THE
FAMILY.—
To the extent that neither divi-
sion (aa) nor division (bb) applies
to the amount so collected, the
Secretary shall distribute the
amount to the family.
‘‘(iii) DISTRIBUTION OF ARREARAGES
THAT ACCRUED WHILE THE FAMILY RE-
CEIVED
ASSISTANCE.—In the case of a
family described in this subparagraph,
paragraph (1) shall apply with respect to
the distribution of support arrearages that
accrued while the family received assist-
ance from the State.
‘‘(iv) ORDERING
RULES
FOR
DIS-
TRIBUTIONS.—For purposes of this sub-
paragraph, unless an earlier effective date
is required by this section, effective Octo-
ber 1, 2000, the Secretary shall treat any
support arrearages collected as accruing in
the following order:
‘‘(I) To the period after the fam-
ily ceased to receive assistance from
the State.
‘‘(II) To the period before the
family received assistance from the
State.
‘‘(III) To the period while the
family was receiving assistance from
the State.
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the Sec-
retary shall distribute the amount so collected to the
family.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) 
ASSISTANCE.—The 
term 
‘assistance’
means, with respect to a State—
‘‘(A) assistance under a State program
funded under part A of title IV of the Social
Security Act; or
‘‘(B) foster care maintenance payments
under a State plan approved under part E of
title IV of the Social Security Act.
‘‘(2) FEDERAL
SHARE.—The term ‘Federal
share’ means that portion of the amount collected
resulting from the application of the Federal medical
assistance percentage in effect for the fiscal year in
which the amount is collected.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT-
AGE.—The term ‘Federal medical assistance per-
centage’ means—
‘‘(A) the Federal medical assistance per-
centage (as defined in section 1118 of the So-
cial Security Act), in the case of Puerto Rico,
the Virgin Islands, Guam, and American
Samoa; or
‘‘(B) the Federal medical assistance per-
centage (as defined in section 1905(b) of such
Act, as in effect on September 30, 1996) in the
case of any other State.
‘‘(4) STATE
SHARE.—The term ‘State share’
means 100 percent minus the Federal share.’’.
(b) WITHHELD CHILD SUPPORT TO BE SHOWN ON
W–2.—Subsection (a) of section 6051 of such Code is
amended by striking ‘‘and’’ at the end of paragraph (10),
by striking the period at the end of paragraph (11) and
inserting ‘‘, and’’, and by inserting after paragraph (11)
the following new paragraph:
‘‘(12) the total amount deducted and withheld
as a child support obligation under section 7527(c).’’
(c) APPLICATION OF ESTIMATED TAX.—
(1) IN
GENERAL.—Subsection (f) of section
6654 of such Code (relating to failure by individual
to pay estimated income tax) is amended by striking
‘‘minus’’ at the end of paragraph (2) and inserting
‘‘plus’’, by redesignating paragraph (3) as paragraph
(4), and by inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) the aggregate amount of the child support
obligations of the taxpayer for months ending with
or within the taxable year (other than such an obli-
gation for any month for which section 7527 does
not apply to such obligation), minus’’.
(2) Paragraph (1) of section 6654(d) of such
Code is amended by adding at the end the following
new subparagraph:
‘‘(D) DETERMINATION OF REQUIRED AN-
NUAL PAYMENT FOR TAXPAYERS REQUIRED TO
PAY CHILD SUPPORT.—In the case of a tax-
payer who is required under section 7527 to
pay a child support obligation (as defined in
section 7527) for any month ending with or
within the taxable year, the required annual
payment shall be the sum of—
‘‘(i) the amount determined under
subparagraph (B) without regard to sub-
section (f)(3), plus
‘‘(ii) the aggregate amount described
in subsection (f)(3).’’
(3) CREDIT FOR WITHHELD AMOUNTS, ETC.—
Subsection (g) of section 6654 of such Code is
amended by adding at the end the following new
paragraph:
‘‘(3) CHILD SUPPORT OBLIGATIONS.—For pur-
poses of applying this section, the amounts collected
under section 7527 shall be deemed to be a payment
of the amount described in subsection (f)(3) on the
date such amounts were actually withheld or paid, as
the case may be.’’
(d) PENALTY FOR FALSE INFORMATION ON WITH-
HOLDING CERTIFICATE.—Section 7205 of such Code (re-
lating to fraudulent withholding exemption certificate or
failure to supply information) is amended by adding at
the end the following new subsection:
‘‘(c) WITHHOLDING OF CHILD SUPPORT OBLIGA-
TIONS.—If any individual willfully makes a false state-
ment under section 7527(a), then such individual shall,
in addition to any other penalty provided by law, upon
conviction thereof, be fined not more than $1,000, or im-
prisoned not more than 1 year, or both.’’
(e) NEW WITHHOLDING CERTIFICATE REQUIRED.—
Not later than 90 days after the effective date of this Act,
each employee who has a child support obligation to which
section 7527 of the Internal Revenue Code of 1986 (as
added by this section) applies shall furnish a new with-
holding certificate to each of such employee’s employers.
A certificate required under the preceding sentence shall
be treated as required under such section 7527.
(f) REPEAL
OF OFFSET
OF PAST-DUE SUPPORT
AGAINST OVERPAYMENTS.—
(1) Section 6402 of such Code is amended by
striking subsections (c) and (h) and by redesignating
subsections (d), (e), (f), (g), and (i) as subsections
(c), (d), (e), (f), and (g), respectively.
(2) Subsection (a) of section 6402 of such Code
is amended by striking ‘‘subsections (c), (d), or (e)’’
and inserting ‘‘subsection (c) or (d)’’.
(3) Subsection (c) of section 6402 of such Code
(as redesignated by paragraph (1)) is amended—
(A) by striking ‘‘(other than past-due sup-
port subject to the provisions of subsection
(c))’’ in paragraph (1),
(B) by striking ‘‘after such overpayment is
reduced pursuant to subsection (c) with respect
to past-due support collected pursuant to an as-
signment under section 402(a)(26) of the Social
Security Act and’’ in paragraph (2).
(4) Subsection (d) of section 6402 of such Code
is amended by striking ‘‘subsections (c) or (d)’’ and
inserting ‘‘subsection (c)’’.
(5) Subsection (e) of section 6402 of such Code
(as redesignated by paragraph (1)) is amended by
striking ‘‘or (d)’’.
(g) REPEAL OF COLLECTION OF PAST-DUE SUP-
PORT.—Section 6305 of such Code is hereby repealed.
(h) CLERICAL AMENDMENTS.—
(1) The table of sections for subchapter A of
chapter 64 of such Code is amended by striking the
item relating to section 6305.
(2) The table of sections for chapter 77 of such
Code is amended by adding at the end thereof the
following new item:
‘‘Sec. 7527. Collection of child support.
‘‘Sec. 7528. Disbursement of child support collections.’’
(i) USE OF PARENT LOCATOR SERVICE.—Section
453(a) of the Social Security Act (42 U.S.C. 653(a)) is
amended by inserting ‘‘or the Internal Revenue Service’’
before ‘‘information as’’.
SEC. 5. ELIMINATION OF PROVISIONS OF LAW RELATING
TO STATE ENFORCEMENT OF CHILD SUP-
PORT OBLIGATIONS OTHER THAN MEDICAL
SUPPORT OBLIGATIONS.
(a) AMENDMENT OF THE SOCIAL SECURITY ACT.—
Except as otherwise expressly provided, wherever in this
section an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Social Security Act.
(b) AMENDMENTS TO SECTION 451.—Section 451
(42 U.S.C. 651) is amended—
(1) by inserting ‘‘medical’’ before ‘‘support obli-
gations’’;
(2) by striking ‘‘obtaining child and spousal
support’’ and inserting ‘‘establishing child and
spousal support obligations’’; and
(3) by striking ‘‘obtaining support’’ and insert-
ing ‘‘establishing such obligations and obtaining
medical support’’.
(c) AMENDMENTS TO SECTION 452.—Section 452
(42 U.S.C. 652) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘obtain-
ing child support and support for the spouse (or
former spouse) with whom the noncustodial
parent’s child is living’’ and inserting ‘‘estab-
lishing child and spousal support obligations of
noncustodial parents and obtaining medical
support from noncustodial parents’’;
(B) in paragraph (4)—
(i) in subparagraph (A)—
(I) by striking ‘‘454(15)(B)’’ and
inserting ‘‘454(11)(B)’’; and
(II) by striking ‘‘and section
458’’;
(ii) in subparagraph (B), by striking
‘‘454(15)(A)’’ and inserting ‘‘454(11)(A)’’;
and
(iii) in subparagraph (C)—
(I) in clause (i), by striking ‘‘sub-
section (g) of this section and section
458’’ and inserting ‘‘subsection (e) of
this section’’; and
(II) in clause (ii), by striking ‘‘—
’’ and all that follows and inserting
‘‘whether Federal and other funds
made available to carry out the State
program are being appropriately ex-
pended, and are properly and fully ac-
counted for;’’
(C) in paragraph (7), by striking ‘‘col-
lecting child and spousal support’’ and inserting
‘‘establishing child and spousal support obliga-
tions and collecting child and spousal medical
support’’;
(D) in paragraph (8)—
(i) by inserting ‘‘the medical support
requirements of’’ before ‘‘court’’ the 1st
place such term appears; and
(ii) by inserting ‘‘medical support re-
quirements of’’ before ‘‘court’’ the 2nd
place such term appears; and
(iii) by striking ‘‘such order’’ and in-
serting ‘‘such requirements’’;
(E) in paragraph (10)—
(i) by striking ‘‘, but not be limited
to’’ and all that follows through the end of
subparagraph (A) and inserting ‘‘include—
‘‘(A) total program costs set forth in suffi-
cient detail to show the cost to the States and
the Federal Government, and an identification
of the financial impact of this part;’’;
(ii) in subparagraph (C)—
(I) in the matter preceding clause
(i), by striking ‘‘collect support’’ and
insert ‘‘receive support’’;
(II) in clause (iii), by striking
‘‘support was collected’’ and inserting
‘‘medical support was provided’’; and
(III) by striking clauses (iv)
through (vii) and inserting the fol-
lowing:
‘‘(iv) the total amount of medical sup-
port provided as a result of State action;’’;
and
‘‘(v) the number of child support
cases filed in each State in the fiscal
year;’’; and
(iii) in subparagraph (G)—
(I) by striking ‘‘and on use of the
Internal Revenue Service for collec-
tions’’ and inserting ‘‘to obtain med-
ical support’’; and
(II) by striking ‘‘on which collec-
tions were made’’ and inserting ‘‘with
respect to which medical support was
provided’’; and
(F) by striking paragraph (6) and redesig-
nating paragraphs (7) through (11) as para-
graphs (6) through (10), respectively;
(2) in subsections (d) and (e), by striking
‘‘454(16)’’ each place such term appears and insert-
ing ‘‘454(12)’’;
(3) in subsection (h)—
(A) by striking ‘‘and enforcing support or-
ders’’ and inserting ‘‘support orders and enforc-
ing the medical support requirements of such
orders’’; and
(B) by striking ‘‘and collect child support
awards’’ and inserting ‘‘child support orders
and obtain medical support under such orders’’;
(4) effective October 1, 1997, in subsection (k),
by striking ‘‘454(31)’’ and inserting ‘‘454(24)’’; and
(5) by striking subsections (b), (c), and (i) and
redesignating subsections (d) through (h), (j), and
(effective October 1, 1997) (k) as subsections (b)
through (h), respectively.
(d) AMENDMENT TO SECTION 453.—Section 453(b)
(42 U.S.C. 653(b)) is amended by striking ‘‘454(26)’’ and
inserting ‘‘454(18)’’.
(e) AMENDMENTS TO SECTION 454.—Section 454
(42 U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) provide that the State will provide services
relating to the establishment of paternity or the es-
tablishment or modification of child support obliga-
tions, or the enforcement of the medical support pro-
visions of such obligations, as appropriate, under the
State plan with respect to—
‘‘(A) each child for whom (i) assistance is
provided under the State program funded under
part A of this title, (ii) benefits or services for
foster care maintenance are provided under the
State program funded under part E of this
title, (iii) medical assistance is provided under
the State plan approved under title XIX, or (iv)
cooperation is required pursuant to section 6(l)
of the Food Stamp Act of 1977 (7 U.S.C.
2015(l)), unless, in accordance with paragraph
(21), good cause or other exceptions exist; and
‘‘(B) any other child, if an individual ap-
plies for such services with respect to the
child;’’;
(2) in paragraph (6), by striking subparagraph
(C) and redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively;
(3) in paragraph (9)—
(A) in subparagraph (E), by striking
‘‘452(a)(11) for income withholding, imposition
of liens, and’’ and inserting ‘‘452(a)(10) for’’;
and
(B) by striking subparagraph (C) and re-
designating subparagraphs (D) and (E) as sub-
paragraphs (C) and (D), respectively;
(4) in paragraph (13), by striking ‘‘collecting
support payments’’ and inserting ‘‘obtaining medical
support pursuant to such orders’’;
(5) in paragraph (15)(B)—
(A) by striking ‘‘(16)’’ and inserting
‘‘(12)’’; and
(B) by striking ‘‘sections 452(g) and 458’’
and inserting ‘‘section 452(e)’’;
(6) in paragraph (16)—
(A) by striking ‘‘452(d)’’ and inserting
‘‘452(b)’’; and
(B) by inserting ‘‘medical’’ before ‘‘support
enforcement’’;
(7) in paragraph (19), by inserting ‘‘medical’’
before ‘‘support’’ each place such term appears;
(8) in paragraph (21)(A), by striking ‘‘466(e)’’
and inserting ‘‘466(c)’’;
(9) in paragraph (23), by striking ‘‘enforce-
ment’’;
(10) in paragraph (25), by striking ‘‘(6)(B)’’
and inserting ‘‘(5)(B)’’;
(11) in paragraph (29), by striking ‘‘, modi-
fying, or enforcing’’ and inserting ‘‘or modifying’’;
(12) in paragraph (31)—
(A) by striking ‘‘452(k)’’ and inserting
‘‘452(h)’’; and
(B) by adding ‘‘and’’ at the end;
(13) by striking ‘‘and’’ at the end of paragraph
(32) and inserting a period; and
(14) by striking paragraphs (5), (10), (11),
(18), (21), (22), (27), and (33), and the last sen-
tence, and redesignating paragraphs (6), (7), (8),
(9), (13), (14), (15), (16), (17), (19), (20), (23),
(24), (25), (26), (27), (28), (29), (30), (31), and
(32) as paragraphs (5) through (25), respectively.
(f) AMENDMENTS TO SECTION 454A.—Section 454A
(42 U.S.C. 654a) is amended—
(1) in subsection (c)—
(A) in the matter preceding paragraph (1),
by striking ‘‘incentive payments and penalty ad-
justments under sections 452(g) and 458’’ and
inserting ‘‘penalty adjustments under section
452(e)’’; and
(B) in paragraph (1)(A), by striking ‘‘and
child support enforcement’’;
(2) by striking subsections (e) and (g);
(3) in subsection (f), by striking paragraph (1)
and redesignating paragraphs (2), (3), and (4) as
paragraphs (1), (2), and (3), respectively;
(4) in subsection (h), by striking ‘‘466(c)’’ and
inserting ‘‘466(b)’’; and
(5) by redesignating subsections (f) and (h) as
subsections (e) and (f), respectively.
(g) REPEAL OF SECTION 454B.—Section 454B (42
U.S.C. 654b) is repealed.
(h) AMENDMENTS TO SECTION 455.—Section 455
(42 U.S.C. 655) is amended—
(1) in subsection (a)(3), by striking ‘‘454(16)’’
each place such term appears and inserting
‘‘454(12)’’;
(2) in subsection (d), by striking ‘‘the amount
of child support collected and disbursed and’’; and
(3) by striking subsection (e) and (b) (as added
by section 375(b) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996).
(i) AMENDMENTS TO SECTION 456.—Section 456(a)
(42 U.S.C. 656(a)) is amended—
(1) in paragraph (1), by striking the 2nd sen-
tence;
(2) in paragraph (2), by striking ‘‘, and’’ at the
end and inserting a period; and
(3) in paragraph (3), by striking ‘‘amounts’’
and inserting ‘‘medical support’’.
(j) REPEAL OF SECTIONS 457 and 458.—Sections
457 and 458 (42 U.S.C. 657 and 658) are repealed.
(k) REPEAL OF SECTION PROVIDING NEW INCEN-
TIVE PAYMENTS TO STATES.—
(1) If this section becomes law before October
1, 1999, then section 201 of the Child Support Per-
formance and Incentive Act of 1998 is repealed.
(2) If this section becomes law on or after Octo-
ber 1, 1999, then section 458A of the Social Secu-
rity Act is repealed.
(l) AMENDMENTS TO NEW SECTION 459.—Section
459 (42 U.S.C. 659) is amended—
(1) in subsection (a), by striking ‘‘enacted pur-
suant to subsections (a)(1) and (b) of section 466
and regulations of the Secretary under such sub-
sections,’’;
(2) in subsection (b), by striking ‘‘subsections
(a)(1) and (b) of section 466’’ and inserting ‘‘State
law’’;
(3) in subsection (c)(2)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘subsections (a)(1) and (b) of
section 466’’ and inserting ‘‘State law’’; and
(B) in subparagraph (B), by striking ‘‘sec-
tion 466’’ and inserting ‘‘State law’’; and
(4) in subsection (d), by striking ‘‘—’’ and all
that follows through ‘‘and (2)’’ and inserting ‘‘, such
moneys’’.
(m) AMENDMENT TO SECTION 460.—Section 460
(42 U.S.C. 660) is amended by striking ‘‘452(a)(8)’’ and
inserting ‘‘452(a)(7)’’.
(n) REPEAL
OF SECTION 464.—Section 464 (42
U.S.C. 664) is repealed.
(o) AMENDMENTS TO SECTION 466.—Section 466
(42 U.S.C. 666) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by 
striking 
‘‘454(20)(A)’’ 
and 
inserting
‘‘454(15)(A)’’;
(B) in paragraph (2)—
(i) in the 1st sentence—
(I) by striking ‘‘(c)’’ and insert-
ing ‘‘(b)’’; and
(II) by striking ‘‘establishing,
modifying, and enforcing’’ and insert-
ing ‘‘establishing and modifying sup-
port obligations and enforcing med-
ical’’; and
(ii) in the 2nd sentence—
(I) by inserting ‘‘of medical sup-
port obligations’’ after ‘‘enforcement’’;
and
(II) by striking ‘‘(d)’’ and insert-
ing ‘‘(c)’’;
(C) in paragraph (5)—
(i) in subparagraph (B)(i), by striking
‘‘454(29)’’ and inserting ‘‘454(22)’’; and
(ii) in subparagraph (C)(iv), by strik-
ing 
‘‘452(a)(7)’’ 
and 
inserting
‘‘452(a)(6)’’;
(D) in paragraph (9), by striking ‘‘(2)’’
and inserting ‘‘(1)’’;
(E) in paragraph (19), by striking ‘‘en-
forced’’ and inserting ‘‘with respect to which
services are requested’’;
(F) in the matter following paragraph
(19)—
(i) by striking ‘‘454(20)(B)’’ and in-
serting ‘‘454(15)(B)’’; and
(ii) by striking ‘‘paragraphs (3), (4),
(6), (7), and (15)’’ and inserting ‘‘para-
graph (15)’’; and
(G) by striking paragraphs (1), (3), (4),
(6), (7), (8), (14), and (17) and redesignating
paragraphs (2), (5), (9), (10), (11), (12), (13),
(15) through (19), (20) (as added by section
3(a) of this Act), and (21) (as added by section
3(b)(1) of this Act) as paragraphs (1) through
(14), respectively;
(2) in subsection (c)—
(A) in paragraph (1)—
(i) in the matter preceding subpara-
graph (A), by striking ‘‘establishment,
modification, or enforcement’’ and insert-
ing ‘‘establishment or modification of sup-
port orders, or enforcement of the medical
support provisions of such orders’’;
(ii) in subparagraph (A), by striking
‘‘466(a)(5)’’ and inserting ‘‘466(a)(2)’’;
(iii) in subparagraph (D)(ii), by strik-
ing ‘‘—’’ and all that follows through
‘‘(II)’’; and
(iv) by striking subparagraphs (B),
(E), (F), and (G) and redesignating sub-
paragraphs (C), (D), and (H) as subpara-
graphs (B), (C), and (D), respectively; and
(B) in paragraph (2)—
(i) by striking ‘‘(a)(2)’’ and inserting
‘‘(a)(1)’’; and
(ii) by striking ‘‘establish, modify, or
enforce support orders’’ and inserting ‘‘es-
tablish or modify support orders or enforce
the medical support provisions of such or-
ders’’;
(3) in subsection (d)—
(A) by inserting ‘‘medical’’ before ‘‘sup-
port’’; and
(B) by striking ‘‘enforcement’’;
(4) in subsection (e), by inserting ‘‘medical’’
after ‘‘to include’’;
(5) in subsection (f), by inserting ‘‘but shall not
have in effect any provision of Article 5 or 6 of such
Act, including any such amendments’’ before the pe-
riod;
(6) in subsection (g), by striking ‘‘454(20)(A)’’
and inserting ‘‘454(15)(A)’’; and
(7) by striking subsection (b) and redesignating
subsections (c) through (g) as subsections (b)
through (f), respectively.
(p) AMENDMENT TO SECTION 468.—Section 468 (42
U.S.C. 668) is amended by striking ‘‘enforcement’’.
(q) AMENDMENTS TO SECTION 469.—Section 469
(42 U.S.C. 669) is amended—
(1) in the section heading, by striking ‘‘EN-
FORCEMENT’’;
(2) in subsection (a)(1), by striking ‘‘enforce-
ment’’; and
(3) in subsection (b)(4), by inserting ‘‘the med-
ical support provisions of’’ before ‘‘an established’’.
(r) AMENDMENTS TO SECTION 469A.—Section 469A
(42 U.S.C. 669a) is amended—
(1) in subsection (a), by striking ‘‘enforce-
ment’’; and
(2) in subsection (b)—
(A) in the heading, by striking ‘‘ENFORCE-
MENT’’; and
(B) by striking ‘‘establishing, modifying, or
enforcing a child support obligation’’ and in-
serting ‘‘establishing or modifying a child sup-
port obligation or enforcing the medical support
provisions of such an obligation’’.
(s) AMENDMENTS TO THE BALANCED BUDGET AND
EMERGENCY DEFICIT CONTROL ACT OF 1985.—Section
256(f) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 906(f)) is amended—
(1) in the heading, by striking ‘‘ENFORCE-
MENT’’; and
(2) by striking ‘‘sections 455 and 458’’ and in-
serting ‘‘section 455’’.
(t) AMENDMENT
TO TITLE 5, UNITED STATES
CODE.—Section 552a(a)(8)(B)(iv)(III) of title 5, United
States Code, as amended by section 110(w) of the Per-
sonal Responsibility and Work Opportunity Reconciliation
Act of 1996, is amended by striking ‘‘, 464,’’.
(u) AMENDMENT
TO TITLE 10, UNITED STATES
CODE.—Section 1408(d)(1) of title 10, United States
Code, is amended in the 1st sentence by striking ‘‘State
disbursement unit established pursuant to section 454B
of the Social Security Act or other’’.
SEC. 6. CRIMINAL PENALTIES FOR WILLFUL FAILURE TO
PAY CHILD SUPPORT REQUIRED TO BE PAID
TO THE INTERNAL REVENUE SERVICE.
Section 228 of title 18, United States Code, is
amended—
(1) by striking subsection (a) and inserting the
following:
‘‘(a) OFFENSE.—Any person who willfully fails to pay
Federal income tax owed by reason of section 7527 of the
Internal Revenue Code of 1986, if the underlying support
obligation has remained unpaid for a period longer than
2 years, or is greater than $10,000, shall be punished as
provided in subsection (c).’’; and
(2) in subsection (c)—
(A) in paragraph (1), by striking ‘‘(a)(1)’’
and inserting ‘‘(a)’’; and
(B) by striking paragraph (2) and insert-
ing the following:
‘‘(2) in the case of a second or subsequent of-
fense under subsection (a), a fine under this title,
imprisonment for not more than 2 years, or both.’’.
SEC. 7. IMPLEMENTATION PLAN.
Not later than 6 months after the date of the enact-
ment of this Act, the Secretary of the Treasury shall sub-
mit to the Congress a plan for implementing the amend-
ments made by this Act.