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 arrears are owed to the State due to the obligee being on Public Assistance, the arrears must not be less than $150.00 and have been delinquent for thirty (30) days or longer.  If all arrears are owed to the obligee, the arrears must not be less than $500.00 and the arrears must be owed on behalf of a minor child.  For the IRS submittal, a minor is defined as being less than 18 years old on December 31st of the year in which the obligor's name is submitted.

For ODT Tax Offset:
For both Public Assistance and Non-Assistance arrears cases, the arrears 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 at the State level then is 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 will usually be sent out to the obligors at the end of October or first of November. The notices will be sent to the last address the IRS had.  If that address is outdated or invalid, the notice will come to the county CSEA where it will be checked for a better address and then forwarded on.  However, this will cause a delay in the obligor receiving the notice.

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 arrears 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 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:  A) Confirming the arrearage amount; B) Examining any proof the obligor presents to substantiate the claim that the amount is incorrect; and, C) Furnish the obligor with a written statement of the results of the review, including how the arrearages were calculated.

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 the local county CSEA receives the money.

Other Important Tax Offset Information you should know!

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

Tax Offset