The purpose of creating proposed Rule 12E-1.0052, F.A.C., is to provide guidance to the public about the Department’s procedures for resolving unidentifiable Title IV-D support payments received by the State Disbursement Unit. The proposed rule also ...

DEPARTMENT OF REVENUE
Division of Child Support Enforcement

RULE NO: RULE TITLE
12E-1.0052: Unidentifiable Collections
12E-1.014: Internal Revenue Service Tax Refund Offset Program; Passport Denial; Administrative Offset Program; Internal Revenue Service Full Collection Services
PURPOSE AND EFFECT: The purpose of creating proposed Rule 12E-1.0052, F.A.C., is to provide guidance to the public about the Department’s procedures for resolving unidentifiable Title IV-D support payments received by the State Disbursement Unit. The proposed rule also provides information to the public about how to reclaim unidentifiable collections. The effect of the proposed rule is to provide: (1) information on identifying support payments that could not be processed because there was not enough information to identify who the payment was for; (2) information on how a noncustodial parent may seek the return of a payment which was never processed; and (3) guidance on how the Department will process payment return requests.
The purpose of the proposed amendments to Rule 12E-1.014, F.A.C., is to reflect the change in 42 United States Code (USC) Section 664(c) which now allows the certification of past-due amounts for Internal Revenue Service Tax Refund Offset in non-public assistance cases where the child has emancipated. The amendment also changes the certification threshold for passport denial from $5000 to amounts over $2500 as allowed by Section 409.2564(10), F.S., as amended July 1, 2007. Other amendments provide new exception criteria for restoring passport privileges to a non-custodial parent who owes more than $2500. The effect of the proposed rule is to inform the public the Department will certify past-due amounts for non-public assistance cases for a child for Internal Revenue Service Tax Refund Offset, even if the child has emancipated. The rule also informs the public that the certification threshold for past-due support for passport denial has changed from $5000 to more the $2500. Finally, the rule informs the public the Department may consider exceptions to restoring an obligor’s passport even if the obligor was not certified in error and has not paid the past-due support balance amount below $2500.
SUMMARY: Rule 12E-1.0052, F.A.C., establishes a method for determining a support collection to be unidentifiable. The rule provides a method for retrieving unidentifiable collections once the collection becomes identified and establishes how the Department will process payment return requests. The rule also incorporates by reference CSE Forms CS-FM100 (Request to Return Payment), CS-FM101 (Request for Payment Return Denied), and CS-FM102 (Payment Return).
Rule 12E-1.014, F.A.C., allows certification for IRS Tax Offset in non-public assistance cases, whether or not the child is a minor. The amendment changes the certification threshold for passport denial from $5,000 to more than $2,500. The amendment also establishes exception criteria for restoration of a passport. The amendment also incorporates by reference CSE Form CS-EF36A (Notice of Decision of Informal Conference, Income Tax Refund or Passport Denial), as well as incorporates plain language.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 409.2557(3)(i), 409.2557(3)(j), 409.2558(4), 409.2558(9) FS.
LAW IMPLEMENTED: 61.17, 409.2558(3), 409.2558(4), 409.2564 FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: September 29, 2009, 9:00 a.m.
PLACE: Room 301, 4070 Esplanade Way, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Larry Green at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: For Rule 12E-1.0052, F.A.C., Phil Scruggs, Government Analyst II, Child Support Enforcement Program, Department of Revenue, P. O. Box 8030, Tallahassee, Florida 32314-8030, telephone [phone], e-mail address [e-mail]. For Rule 12E-1.014, F.A.C., Steve Robinson, Government Analyst II, Department of Revenue, Post Office Box 8030, Tallahassee, Florida 32314-8030, telephone number [phone], e-mail address [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

12E-1.0052 Unidentifiable Collections.

(1) Introduction. The Department is responsible for distribution and disbursement of child support payments under Section 409.2558, F.S. The State Disbursement Unit operating under Section 61.1824, F.S., is responsible for the collection and disbursement of child support payments for:

(a) cases enforced by the Department under Title IV-D of the Social Security Act; and

(b) cases not enforced by the Department under Title IV-D of the Social Security Act (non Title IV-D cases) in which an order was initially issued in Florida on or after January 1, 1994, and in which the obligor’s support obligation is being paid through income deduction.

(2) Definitions. For purposes of this rule:

(a) “Comprehensive Case Information System” or “CCIS” means a secured internet portal developed and set up by Florida Association of Court Clerks and Comptrollers (FACC) that provides a single point of search for statewide court case information.

(b) “Department” means the Florida Department of Revenue.

(c) “State Disbursement Unit” or “SDU” means the unit set up and operated by the Title IV-D agency, under Section 61.1824, F.S. The SDU provides one central address for collection and disbursement of child support payments for the cases listed in subsection (1).

(d) “Unidentifiable collection” as defined by the social and economic assistance provisions of Section 409.2554(14), F.S., means a collection received by the SDU or Department for which the noncustodial parent, custodial parent, depository or circuit civil numbers, or source of the collection cannot be identified.

(3) Payment Processing Procedures.

(a) The State Disbursement Unit’s automated remittance processing system will match and apply child support collections to the individual child support case.

(b) The following steps are taken, sequentially, to try to identify the payment instrument owner, recipient, or source of payment when support collections cannot be identified by the automated remittance processing system. If the manual search identifies the owner of the payment instrument or the recipient, the collection is applied to the correct case.

1. Search the State Disbursement Unit databases using available information on the payment instrument. The information can include case number, noncustodial parent name and social security number, and custodial parent name and social security number.

2. Search the payment transaction document imaging database. Searches will be by employer name, phone number, address, check routing number, checking account number, and noncustodial parent name. If an employer is found, an attempt will be made to match the collection amount with the check number, check routing number, checking account number, payment method, and check amount to identify the collection and match it to the correct case. If the collection cannot be matched to a case, the employer is contacted by phone to try to match the collection to the correct case.

3. Search the Department’s automated case management computer system. Searches will be by names, social security numbers, case number, depository number, using the information available from the payment instrument.

4. If the searches under subparagraphs 1. through 3. do not identify the payment instrument owner, recipient, or employer within 10 business days, further research will be conducted in an attempt to identify the collection and match it to the correct case. Further research includes the following Internet searches.

a. Noncustodial parent and/or custodial parent name, address, and phone number.

b. Company name.

c. Clerk of court records.

d. Secretary of State’s databases (corporations, trademarks, limited partnerships, federal lien registration, fictitious names, general and limited liability partnerships, and judgment liens).

e. Department of Business and Professional Regulation licensing.

f. Department of Health licensing.

g. Secretary of State licensing.

h. Florida Bar licensing.

5. If the searches under subparagraphs 1. through 4. do not identify the collection, repeat the steps described in subparagraphs 1. through 4. after one hundred business days from the original collection receipt date.

(c) If the searches under subparagraph (3)(b)5. of this rule do not identify the owner of the payment instrument, recipient or employer, the collection is considered unidentifiable. The Department shall declare the unidentifiable collection as program income, deposit the state share of the collection in the General Revenue Fund and the federal share of the collection in the Grants and Donations Trust Funds.

(d) The State Disbursement Unit may identify the case, but sends the case data and payment to the Department for Title IV-D processing. If the Department’s automated system cannot find the case, search the Comprehensive Case Information System (CCIS) to find out if the collection was sent to the Department in error. If the collection was received in error, it is returned to the appropriate clerk of court.

(4) Reclaiming Unidentifiable Collections.

(a) The obligor may reclaim unidentifiable collections. The obligor may contact the local child support office or contact the Department at [phone] and ask for the Unidentified Collection Unit. The obligor may reclaim an unidentifiable collection up to five years from the date the collection was received by the State Disbursement Unit. Requests after five years will be denied. The five-year limit is based on the limitations of actions found in Section 95.11(2)(b), F.S.

(b) To reclaim a collection, the obligor must complete and send to the Department, Form CS-FM100, Request to Return Collection, dated June 2008, incorporated by reference in this rule. The obligor must prove they are the collection owner by giving his or her name, their mailing address, child support or case number, date and amount of collection, and proof of payment. Examples of acceptable proof include: front and back copy of canceled check; money order receipt; or pay stub showing date and amount of payment.

(c) The Department will review the information submitted by the obligor and respond in writing to approve or deny the request.

1. If approved, the Department will mail the collection and Form CS-FM102, Collection Return, dated June 2008, incorporated by reference in this rule, to the obligor.

2. If denied, the Department will mail Form CS-FM101, Request for Collection Return Denied, dated June 2008, incorporated by reference in this rule, to the obligor. Form CS-FM101 states the request is denied, reason for the denial, and the obligor may contest the decision by seeking an administrative hearing under Chapter 120, F.S. The form includes a Notice of Rights.

3. An obligor may seek an administrative hearing to contest the Department’s decision to deny a request to reclaim a collection considered unidentifiable by the Department. A petition for an administrative hearing must be received by the Department of Revenue, Child Support Enforcement Program, Deputy Agency Clerk within twenty (20) days from the mailing date of Form CS-FM101. Administrative hearings shall be conducted pursuant to Chapter 120, F.S.

(d) Members of the public may get a copy of the forms used in this rule chapter, incorporated by reference, without cost, by writing to the Department of Revenue, Child Support Enforcement Program, Attn.: Forms Coordinator, P. O. Box 8030, Tallahassee, Florida 32314-8030.

Rulemaking Authority 409.2557(3)(j), 409.2558(4), 409.2558(9) FS. Law Implemented 409.2558(3), 409.2558(4) FS. History–New ________.

 

(Substantial rewording of Rule 12E-1.014 follows. See Florida Administrative Code for present text.)

12E-1.014 Internal Revenue Service Tax Refund Offset Program; Passport Denial; Administrative Offset Program; Internal Revenue Service Full Collection Services.

(1) Definitions. As used in this rule:

(a) “Assignment” means any assignment of rights to support as a condition of eligibility for temporary cash assistance, foster care maintenance payments, or medical support as authorized by 45 Code of Federal Regulations, Section 301.1.

(b) “Offset” means the complete or partial interception of an Internal Revenue Service income tax refund or rebate. The Department will intercept federal income tax refunds or rebates for past due support owed for a child, whether or not the child is a minor, as authorized by 42 United States Code, Section 664(c).

(c) “Past-due support” means the amount of support determined under a court order, or an order of an administrative process established under state law, for support and maintenance of a child which has not been paid, whether or not the child is a minor, as defined in 45 Code of Federal Regulations, Section 301.1.

(2) Certification for offset and passport denial. The Department shall certify obligors for offset and passport denial to the Federal Office of Child Support Enforcement when they meet the criteria in paragraphs (5)(b) and (6)(a).

(3) Notifying the obligor that the Department is certifying past-due support for offset and passport denial. The Federal Office of Child Support Enforcement mails one notice to each obligor. The notice tells the obligor he or she has 30 days from the date of the notice to pay the past-due amount in full to prevent certification. The certification continues until the obligor pays the past-due support in full. On a weekly basis, the Department will certify any increase or decrease in an obligor’s past-due support amount. The notice also tells the obligor that he or she may contest the amount of past-due support owed. To contest, the obligor must contact the Department at the address or telephone number provided in the notice within 30 days from the date of the notice.

(4) Right to informal review and administrative hearing.

(a) If the obligor contacts the Department within 30 days from the date of the notice, the Department shall review its records and any records submitted by the obligor and attempt to resolve the obligor’s concerns informally.

(b) If the Department cannot resolve the obligor’s concerns during the informal review, the Department shall notify the obligor by regular mail at his or her last known address using Department of Revenue Form CS-EF36A, Notice of Outcome of Informal Conference for IRS Offset Certification/Passport Denial. Form CS-EF36A (R. 02/08) is incorporated by reference in this rule. Members of the public may obtain a copy of this form by writing to: Department of Revenue, Child Support Enforcement Program, attn.: Forms Coordinator, P. O. Box 8030, Tallahassee, FL 32314-8030. The notice tells the obligor that the Department will certify the obligor’s past-due support for offset, passport denial, or both. The notice also tells the obligor that he or she may ask for an administrative hearing by filling in the backside of the notice and returning it to the Department within 30 days from the date on the notice.

(c) If the Department does not resolve the obligor’s concerns through an informal review, the obligor may ask for an administrative hearing.

1. If the past-due support is based on a Florida order, the obligor may ask for an administrative hearing in Florida. The Department of Children and Family Services, Office of Appeal Hearings conducts this hearing, as authorized by Section 120.80(7), F.S.

2. If the past-due support is based on an order entered in another state, the obligor may ask that a hearing be held either in Florida or in the state that issued the order. If the obligor asks for the hearing to be held in the issuing state, the Department will contact the state that issued the order within 10 days of receiving the obligor’s request. The state that issued the order will tell the obligor of the date, time, and place of the administrative hearing.

(d) If the Department of Children and Family Services holds an administrative hearing and a final order is issued in the obligor’s favor, the Department will tell the Federal Office of Child Support Enforcement to remove the obligor’s certification or change the certification to show the correct past-due support amount. If the final order is issued in the Department’s favor, the certification stays in place and any change in the past-due support amount is updated as stated in subsection (3).

(e) If the obligor does not ask for an informal review or administrative hearing within 30 days from the date of the notice, the obligor waives the right to contest the certification.

(5) Internal Revenue Service Tax Refund Offset Program.

(a) Obligors who owe past-due support in Title IV-D cases are subject to offset as authorized in 45 Code of Federal Regulations, Section 303.72.

(b) Certification for Offset. The Department shall certify an obligor for offset if the obligor owes past-due support as follows:

1. For support assigned to the State, the amount of past-due support is not less than $150.

2. For support owed to the obligee, the amount of past-due support is not less than $500.

(c) Notification of Offset. Once an offset occurs, the United States Department of Treasury notifies the obligor by regular mail that they are forwarding the offset amount from the tax refund to the Department.

(d) Distribution of Offset.

1. The Department shall keep federal income tax refund offset payments in current and former temporary cash assistance cases up to the amount of past-due support assigned to the State. After the amount of past-due support assigned to the State is paid in full, any remaining past-due support collected by the Department is paid to the obligee as required by 42 United States Code, Sections 657(a)(1) and (a)(2)(B)(iv).

2. For past-due support that is not assigned to the State, the Department delays distribution of the offset amount for six months for a refund from a joint federal income tax return as allowed by 42 United States Code 664 (a)(3)(B). Distribution is delayed to allow the unobligated joint filer to claim his or her share of the refund before the offset amount is distributed. In these instances, distribution is delayed until one of the following occurs:

a. The Department receives written verification from the United States Department of the Treasury that an injured spouse claim filed by the obligor’s spouse has been resolved.

b. The obligor pays the past-due support owed in full.

c. Six months has passed since the receipt of the offset collection.

(6) Passport Denial.

(a) Obligors who are certified under subsection (2) and who owe more then $2500 in past-due support are also reported to the United States Department of State for passport denial as required by 42 United States Code, Section 652(k).

(b) When the United States Department of State takes action to deny an obligor’s passport, they send the obligor a notice telling the obligor he or she is not eligible to receive a passport.

(c) If an obligor needs a United States passport, the obligor must contact the Department at the address or telephone number provided in the notice mailed by the Federal Office of Child Support Enforcement as out-lined in subsection (3) of this rule. To restore passport eligibility, the obligor must:

1. Reduce the amount of past-due support owed to $2500 or less: or

2. Prove he or she owes less then $2500 in past-due support; or

3. Provide documentation from a medical authority verifying a death or medical emergency requiring travel outside of the United States.

(d) An obligor may ask the Department to consider a request to reinstate a denied passport for reasons other than those listed in paragraph (6)(c) above. Such other reasons may include, but are not limited to, cases in which a passport is necessary for travel outside the United States for employment.

(e) Only the state that certifies an obligor for passport denial may decertify the obligor and restore the obligor’s passport eligibility. If a state other than Florida certified the obligor for passport denial, the obligor must contact the other state at the address or telephone number listed in the notice discussed in subsection (3) of this rule to ask about passport reinstatement.

(7) Internal Revenue Service Full Collection Services. As allowed by 45 Code of Federal Regulations, 303.71, the Department will request the Federal Office of Child Support Enforcement to certify past-due support to the Secretary of the Treasury for full collection services under the Internal Revenue Code.

Rulemaking Specific Authority 409.2557(3)(i) FS. Law Implemented 61.17, 409.2564 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.011, Amended 1-23-03,___________.

NAME OF PERSON ORIGINATING PROPOSED RULE: For Rule 12E-1.0052, F.A.C., Phil Scruggs, Government Analyst II, Child Support Enforcement Program, Department of Revenue, P. O. Box 8030, Tallahassee, Florida 32314-8030, telephone [phone], e-mail address [e-mail]. For Rule 12E-1.014, F.A.C., Steve Robinson, Government Analyst II, Department of Revenue, Post Office Box 8030, Tallahassee, Florida 32314-8030, telephone number [phone], e-mail address [e-mail]
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: The Governor and Cabinet of the State of Florida
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 25, 2009
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: April 24, 2009, Vol. 35, No. 16, pp. 1932-1933. The workshop was held on May 11, 2009. No one appeared at the workshop and the Department did not receive written comments.