[Code of Federal Regulations]
[Title 45, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR303.102]

[Page 261-262]
 
                        TITLE 45--PUBLIC WELFARE
 
    CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT 
 
PART 303_STANDARDS FOR PROGRAM OPERATIONS--Table of Contents
 
Sec. 303.102  Collection of overdue support by State income tax refund offset.

    (a) Overdue support qualifying for offset. Overdue support qualifies 
for State income tax refund offset if:
    (1) There has been an assignment of the support obligation under 
section 408(a)(3) of the Act or section 471(a)(17) of the Act or the IV-
D agency is providing services under Sec. 302.33 of this chapter, and
    (2) The State does not determine, using guidelines it must develop 
which are generally available to the public, that the case is 
inappropriate for application of this procedure.
    (b) Accuracy of amounts referred for offset. The IV-D agency must 
establish procedures to ensure that:
    (1) Amounts referred for offset have been verified and are accurate; 
and
    (2) The appropriate State office or agency is notified of any 
significant reductions in (including an elimination of) an amount 
referred for collection by State income tax refund offset.
    (c) Procedures for contesting offset and for reimbursing excess 
amounts offset. (1) The State must establish procedures, which are in 
full compliance with the State's procedural due process requirements, 
for a noncustodial parent to use to contest the referral of overdue 
support for State income tax refund offset.
    (2) If the offset amount is found to be in error or to exceed the 
amount of overdue support, the State IV-D agency must take steps to 
refund the excess amount in accordance with procedures that include a 
mechanism for promptly reimbursing the noncustodial parent.
    (3) The State must establish procedures for ensuring that in the 
event of a joint return, the noncustodial parent's spouse can apply for 
a share of the refund, if appropriate, in accordance with State law.
    (d) Notice to custodial parent. The IV-D agency must inform 
individuals receiving services under Sec. 302.33 of this chapter, in 
advance that, for cases in which medical support rights have been 
assigned under 42 CFR 433.146, and amounts are collected which represent 
specific dollar amounts designated in the support order for medical 
purposes, amounts offset will be distributed under Sec. 302.51(c) of 
this chapter.
    (e) Advance notice to noncustodial parent. The State must send a 
written advance notice to inform the noncustodial parent of the referral 
for State income tax refund offset and of the opportunity to contest the 
referral.
    (f) Fee for certain cases. The State IV-D agency may charge an 
individual who is receiving services under

[[Page 262]]

Sec. 302.33(a)(1) (i) or (iii) of this chapter a reasonable fee to 
cover the cost of collecting past-due support using State tax refund 
offset. The State must inform the individual in advance of the amount of 
any fee charged.
    (g) Distribution of collections. (1) The State must distribute 
collections received as a result of State income tax refund offset:
    (i) In accordance with section 457 of the Act and Sec. Sec. 302.51 
and 302.52 of this chapter; and
    (ii) For cases in which medical support rights have been assigned 
under 42 CFR 433.146, and amounts are collected which represent specific 
dollar amounts designated in the support order for medical purposes, 
under Sec. 302.51(c) of this chapter.
    (2) If the amount collected is in excess of the amounts required to 
be distributed under paragraph (g)(1) of this section, the IV-D agency 
must repay the excess to the noncustodial parent whose State income tax 
refund was offset within a reasonable period in accordance with State 
law.
    (3) The State must credit amounts offset on individual payment 
records.
    (h) Information to the IV-D agency. The State agency responsible for 
processing the State tax refund offset must notify the State IV-D agency 
of the noncustodial parent's home address and social security number or 
numbers. The State IV-D agency must provide this information to any 
other State involved in enforcing the support order.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19655, May 9, 1985; 50 FR 31720, Aug. 6, 1985, as amended at 51 
FR 37731, Oct. 24, 1986; 54 FR 32312, Aug. 4, 1989; 56 FR 8005, Feb. 26, 
1991; 64 FR 6252, Feb. 9, 1999; 68 FR 25305, May 12, 2003]