CHILD SUPPORT ENFORCEMENT
TAX OFFSET
GUIDE
Division of
CHILD SUPPORT
ENFORCEMENT
2 | Handbook for Parents
WHAT IS THE INCOME TAX REFUND
OFFSET?
Tax Oset is the interception of the federal and/
or state income tax refunds of a parent who is
responsible for paying child support. It is a primary
method for the collection of child support arrears.
This collection method is used to collect past due
child support, spousal support, and medical support.
HOW DOES THE FEDERAL TAX
REFUND OFFSET PROGRAM WORK?
The names, social security numbers, and amounts
of past-due support of people who are behind in
their child support payments are submitted to the
Department of Treasury through the federal Oce
of Child Support Enforcement (OCSE).
A parent who is responsible for support, and whose
support debt meets the criteria for federal oset,
will receive a Pre-Oset Notice that explains the
process and shows the amount of past-due support
owed at the time of the notice. The Pre-Oset Notice
includes information about federal tax refund oset
and actions the child support agency may take
to enforce a support obligation. It also includes
information about how to contest the debt amount.
When the Treasury processes tax refunds, it
identies those who owe past-due support and
intercepts all or part of the tax refund. The Treasury
forwards the intercepted or oset funds through
OCSE to the state child support agency to pay the
past-due support.
At the time of the federal tax refund oset, the
Treasury mails a Notice of Oset to the parent
responsible for support stating that all or part
of their federal tax refund has been intercepted
because of the child support debt. The notice directs
the parent to contact the local child support agency
for further information.
HOW DOES THE STATE TAX REFUND
OFFSET PROGRAM WORK?
Before issuing a refund, Mississippi’s Department
of Revenue is required to check for any outstanding
debt owed such as child support arrearages. If such
debt is found, the amount owed may be deducted
from your state refund. The Mississippi Department
of Revenue sends collections intercepted from state
income tax refunds to the child support agency for
distribution.
WHEN IS A CASE ELIGIBLE FOR TAX
REFUND OFFSET?
For federal IRS tax refund oset: The threshold
varies by the type of arrears owed. Cases with public
assistance arrears are eligible if the total balance of
public assistance arrears from all of the parent who
owes support’s cases is at least $150. For non-public
assistance arrears, the total balance from all of his
or her cases must be at least $500 to be eligible.
For state income tax refund oset: There must be
a total public assistance arrears balance of at least
$500 from all of the parent who owes support’s cases
or a total non-public assistance arrears balance of at
least $500 from all of his or her cases for individual
cases to be eligible for state income tax oset.
WHAT CAN YOU TELL ME ABOUT
THE OTHER PARENT’S TAX REFUND
FILING STATUS?
The IRS has very specic guidelines that require
state child support agencies to safeguard federal tax
information. Failure to safeguard taxpayers’ federal
tax information is a violation of federal law. Please
understand that child support sta are limited by
federal law and cannot discuss the specic details of
another parent’s tax ling status.
Custodial parents can be told the case was submitted
for tax oset. If a joint tax collection is being held
for six months, this information can only be shared
Division of
CHILD SUPPORT
ENFORCEMENT
3 | Handbook for Parents
with the parent responsible for support and their
spouse.
HOW DO I KNOW IF MY TAX REFUND
WAS OFFSET FOR PAST-DUE CHILD
SUPPORT?
Federal IRS tax oset: You will receive a letter from
the federal government (Department of the Treasury,
Bureau of the Fiscal Service) informing you that your
tax refund has been oset and the amount of the
oset. The actual amount that Treasury deducts
from the tax refund may dier from the amount on
the Pre-Oset Notice based on updated activity on
the support obligation. The state updates the debt
amount regularly, but may not issue a new notice
each time the debt amount changes.
State income tax oset: If your state tax refund
has been oset, you will receive a notice from the
Mississippi Department of Revenue.
WHAT IF I THINK MY REFUND
SHOULD NOT HAVE BEEN OFFSET?
There are three reasons to dispute a tax oset:
• If you are not the person listed on the Notice.
• If the Notice contains an incorrect social
security number.
• If you do not believe you owe past-due child
support.
Remember, the referral is mandatory under federal
law if you owe the minimum amount of arrears.
The parent responsible for support may exercise
his or her right to contest the intercept by personal
contact, by telephone, or by correspondence:
In Person Request- You can stop by any local child
support oce and request an administrative
review.
Child Support Customer Service- You can make
a verbal request for an administrative review by
calling Child Support Customer Service at 1-877-
882-4916.
Written Request- You can submit a written request
for administrative review by mailing your request
to:
MS Department of Human Services
Attention: Child Support Tax Oset
128 West Jeerson Street
Yazoo City, MS 39194
It is important to note that any request for an
administrative review of a state tax o
set must be
made within thirty (30) days of the date the oset
notice was mailed. There is no deadline by which
the review of the oset of a federal tax return must
be requested.
WHEN WILL THE TAX REFUND
PAYMENT BE APPLIED TO MY CHILD
SUPPORT ACCOUNT AND PAYMENT
RELEASED TO THE OTHER PARENT?
If a joint tax return is led, it may take up to six (6)
months for any federal (IRS) oset payment to be
applied. State tax collections are distributed after a
thirty (30) day hold period. This allows the spouse of
the parent responsible for support to appeal as an
injured spouse.
WHAT IF I FILED A JOINT TAX RETURN,
BUT I AM NOT RESPONSIBLE FOR THE
PAST-DUE CHILD SUPPORT DEBT?
Federal IRS Returns: The injured (non-obligated)
spouse on a jointly led tax return may be entitled
to a refund of their share of a jointly led federal tax
return oset. Funds from Non-TANF joint returns
are held for at least six months to allow time for
the injured spouse to file an IRS Form 8379
(Injured Spouse Allocation). Form 8379 is filed with
the IRS, not MDHS. For more information about
this form, call the IRS at (800) 829-1040. For best
results, Form 8379 should be filed at the same
time you file the joint tax return.
State Returns: The injured spouse may also request
Division of
CHILD SUPPORT
ENFORCEMENT
4 | Handbook for Parents
a review of their state tax oset by submitting a
request in writing to the Child Support Tax Oset
Program within 30 days of receiving notication
of the o
set from the Mississippi Department of
Revenue. The request should be submitted to:
MS Department of Human Services
Attention: Child Support Tax Oset
P.O. Box 352
Jackson, MS 39205
IF I AM THE SPOUSE ON A JOINTLY
FILED IRS TAX RETURN, MAY I WAIVE
MY CLAIM TO A PORTION OF THE
JOINTLY FILED FEDERAL INCOME
TAX RETURN TO ALLOW FOR THE
PAYMENT TO BE RELEASED EARLY?
Yes. If a joint tax return is led and the spouse of
the parent who owes support agrees to voluntarily
waive his or her right to claim a portion of the
federal income tax return, the parent who owes
support and his/her spouse must complete the
Injured Spouse Waiver to release a joint IRS tax
refund. Once completed, this form shall be emailed
or mailed to:
Email:
[email protected]
Mail:
MS Department of Human Services
Attention: Child Support Tax Oset
P.O. Box 352
Jackson, MS 39205