New Mexico Administrative Code › Title 8 - SOCIAL SERVICES › Chapter 50 - CHILD SUPPORT ENFORCEMENT PROGRAM › Part 112 - ADMINISTRATIVE ENFORCEMENT OF SUPPORT OBLIGATIONS › Section 8.50.112.11 - COLLECTION OF PAST DUE SUPPORT BY FEDERAL TAX REFUND OFFSET

Current through Register Vol. 35, No. 13, July 16, 2024
Federal tax refund offset is utilized to pay support
				  arrearages, including child support, medical support, and spousal support.
				  Cases meeting specific criteria are referred to the U.S. department of
				  treasury's financial management service.
A. Criteria for federal income tax offset: A
				Title IV-D case may be referred for federal income tax offset, regardless of
				whether the child(ren) are emancipated, so long as there is a child support
				delinquency or arrearage Title IV-D cases having spousal support delinquencies
				or arrearages will not be referred for federal income tax offset unless there
				is an ongoing child support obligation, delinquency, or arrearage. Title IV-D
				cases that are solely for processing payments will not be referred. Only Title
				IV-D cases that meet at least one of the criteria in
				45
				CFR §
										303.72(a) are to
				be referred for federal income tax offset.
B. Periodic updates on referred obligors are
				sent by the Title IV-D agency to the treasury department. Those updates may
				result in modifications up or down on the balance due or deletions from the
				referral.
C. Joint return: The U.
				S. internal revenue service (IRS) will offset a refund from a joint income tax
				return to pay a past due support obligation if either tax filer is certified as
				being legally responsible for providing support. Complaints, questions, and
				forms (i.e., injured spouse claim and allocation) concerning joint refund cases
				can only be addressed by the IRS. If the obligor's spouse is not liable for the
				support debt, the IRS will issue a pro rata refund to the spouse (upon the
				filing of an IRS injured spouse claim and allocation form by the obligor's
				spouse) and the Title IV-D agency will be required to reimburse the IRS in the
				amount of the pro rata refund. The federal government will advise the Title
				IV-D agency of any adjustments to Title IV-D collections. The injured spouse
				may also agree to voluntarily release the claim of his or her portion of the
				joint refund to have it applied towards the child support obligation. This will
				result in an immediate distribution of the refund amount to the Title IV-D
				case. An injured spouse may request the release form from the Title IV-D
				agency, or may provide a notarized letter authorizing the release. The
				notarized letter shall set forth the injured spouse's name, the name of the
				obligor, and the obligor's CSED case number(s).
D. Bankruptcy cases: The Title IV-D agency
				will review the non-custodial party's bankruptcy case to determine what action,
				if any, the Title IV-D agency should take.
E. Notification of federal income tax offset:
(1) Written advance notice is sent to inform
				an obligor that the amount of his or her past due support will be referred to
				the secretary of the U.S. treasury for collection by federal tax refund offset
				and that any amounts collected will be applied towards the obligor's child
				support obligation. The notice shall be sent to the obligor's last address of
				record with the Title IV-D agency and shall inform the obligor:
(a) of the right to contest the department's
				determination that past due support is owed;
(b) of the right to contest the amount of
				past due support;
(c) of the right
				to request an administrative review;
(d) of the procedures and time frame for
				requesting an administrative review;
(e) notice will be provided to any individual
				who filed a joint return with the obligor, advising of the process for
				requesting the obligor's share of the refund; and
(f) that the U.S. treasury will notify the
				obligor's spouse at the time of offset regarding steps to take to protect the
				share of the refund that may be payable to that spouse.