Tax Offset

History of the Tax Offset Program

The Tax Offset Program has been around for many years. It was originally started as a way to collect back child support which was owed to the state. In these cases the payee had been on Public Assistance and signed their child support over to the state in turn for their Assistance Grants. In 1981, Public Law 97-35 was passed which allowed the Tax Offset Program to be also used for Foster Care and Non-Assistance cases. Since then, IV-D Child Support cases which meet the criteria needed have been submitted for the Tax Offset.

WHAT ARE THE CRITERIA?

For an IRS Tax Offset
If an arrearage is owed to the State due to the Obligee receiving Public Assistance, the arrearage must not be less than $150.00 and have been delinquent for thirty (30) days or longer. If all arrearage is owed to the Obligee, the arrearage must not be less than $500.00.  If the Obligor pays support on multiple cases, the arrearage owed on each case is combined to determine submittal threshold amount.

For ODT Tax Offset
For both Public Assistance and Non-Assistance arrearage cases, the arrearage amount must be no less than $150.00 and must be delinquent for a total of three months or longer.

How do I know if I've been submitted for the Offset?
The statewide child support computer system (SETS) extracts a list of cases that meet the criteria for submittal. This list is processed through ODJFS Office of Child Support at the state level then sent to the Federal Office of Child Support Enforcement. The Federal OCSE obtains addresses from the IRS and mails a pre-offset notice to each name submitted.

This notice is sent at the time the Obligor initially meets the submittal criteria and remains submitted until all support and medical arrearage is paid in full without further notice. The notices will be sent to the last valid address on record with the IRS. If that address is outdated or invalid, the notice will be sent to the county CSEA where the CSEA will investigate and locate a valid address.  Once a valid address is obtained, the Offset notice will be sent to the Obligor.  However, this will cause a delay in the obligor receiving the notice.

ODT pre-offset notices are sent to Obligors one time per year, usually in September or October, and are sent each year an Obligor’s arrearage meets the submittal criteria.

What's a pre-offset notice? And what does it do?
The pre-offset notice serves to safeguard the taxpayer's right to due process. The pre-offset notice contains the dollar amount to be offset, lists the name and address of the county CSEA, and a statement that informs the Obligor that the amount of past-due support may be reported to consumer reporting agencies. An obligor who owes arrearage both to the Obligee and the State of Ohio may receive two notices.

So what do I do if I disagree with the amount listed on the notice?
If you believe the amount is incorrect, you should contact the county CSEA listed on your notice. You will receive an account summary and a request for an Administrative (Mistake of Fact) Review.

What happens if I request an Administrative Review?
Within 30 days of the request, the CSEA will conduct a desk review of the case comprising of:

1. Confirming the arrearage amount;
2. Examining any proof the obligor presents to substantiate the claim that the amount is incorrect
3. Furnish the obligor with a written statement of the results of the review, including how the arrearages were calculated.

Other Important Tax Offset Information you should know!

**SPECIAL NOTE** - Due to the offset money having to be processed through Federal and State offices, once taxes are filed it may take 4-6 months before.

Other Important Tax Offset Information you should know!

Any money collected from a IRS Tax Offset will go first to pay off any arrears owed to the State, then to the Obligee.

Any money collected from a State Of Ohio Tax Offset will first pay current support due for the month and then any arrearage owed to the State or Obligee.

The CSEA can withhold tax refund money up to the amount of arrears that exist at the time the refund money is received by the CSEA, regardless of the initial submittal amount.

The submitted obligor, or his/her spouse or attorney, who contacts the CSEA for tax information, or to make a complaint about the taking of a joint refund for only one spouse's obligation, will be referred to the IRS. An Injured Spouse Claim should be filed.

A submitted obligor who tries to do a "rapid refund" will not receive their tax money and will end up paying for the "rapid refund" process out of their own pocket.