---
kind: "section"
citation: "45 C.F.R. § 303.102"
title: "45"
number: "303.102"
heading: "Collection of overdue support by State income tax refund offset."
url: "https://uscodex.org/cfr/45/303.102"
---

# §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 [§ 302.33](/cfr/45/302.33.md) 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 [§ 302.33](/cfr/45/302.33.md) of this chapter, in advance that, for cases in which medical support rights have been assigned under [42 CFR 433.146](/cfr/42/433.146.md), and amounts are collected which represent specific dollar amounts designated in the support order for medical purposes, amounts offset will be distributed under [§ 302.51(c)](/cfr/45/302.51.md?p=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 [§ 302.33(a)(1)](/cfr/45/302.33.md?p=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 §§ [302.51](/cfr/45/302.51.md) and [302.52](/cfr/45/302.52.md) of this chapter; and
    - (ii) For cases in which medical support rights have been assigned under [42 CFR 433.146](/cfr/42/433.146.md), and amounts are collected which represent specific dollar amounts designated in the support order for medical purposes, under [§ 302.51(c)](/cfr/45/302.51.md?p=c) of this chapter.
  - (2) If the amount collected is in excess of the amounts required to be distributed under [paragraph (g)(1)](#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.

## Notes

### Amendments

[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]

### Authority

Authority: 42 U.S.C. 651 through 658, 659a, 660, 663, 664, 666, 667, 1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), 1396(k), and 25 U.S.C. 1603(12) and 1621e.

### Source

Source: 40 FR 27164, June 26, 1975, unless otherwise noted.

### Amendments

[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]