5.4 - Federal Offset Fee

Federal Authority:

United States Code

42 USC 664 - Collection of Past Due Support from Federal Tax Refunds

Code of Federal Regulations

45 CFR 303.72 - Requests for collection of past-due support by Federal tax refund offset

Overview

Since January 1999, the United States Department of Treasury’s Financial Management Service (FMS) has operated the federal income tax refund offset (Intercept) program. The Wyoming CSP submits a file to FMS of the delinquent non-custodial parents whose arrears meet the certification requirements as described in greater detail in 9.2 Enforcement – Administrative Remedies.

Note: Only IV-D cases can be submitted to FMS.

Policy

When FMS intercepts a non-custodial parent’s federal income tax refund, FMS will forward the intercept to the appropriate State. Upon receipt of the intercept, the Wyoming CSP credits the non-custodial parent with the entire intercept amount; however, Wyoming CSP retains a $25 federal tax offset fee from any collection on behalf of a non-public assistance custodial parent, except in foster care or past or present POWER cases.

Upon application to the IV-D child support program, the custodial parent is notified of the $25 federal tax intercept fee via A Guide to the Wyoming Child Support Program.

Cross Reference

None

Version Number: 3

Last Revised Date: March 27, 2017

Last Reviewed Date: March 31, 2023