General Tax Intercept Question

[CJane]

What is the name of your state? MO but N/A for this question

This was posted in another thread, but I didn't want to hijack...

Actually, I believe even November is too late. Once a party receives the notice of an intent to intercept, they are entitled to a hearing (within so many days in some states) to contest it.

My question is, is the party who's refund is to be intercepted always notified of the intercept?

It just seems that there are an awful lot of people who post here about refunds being intercepted who are surprised by the fact that they're not getting their refund.

So... notification a sure thing?

In my state, intercept is a given in that I don't have to file anything to request it, as long as the NCP is $500+ in arrears. Is that not a fairly standard practice?

 

[TinkerBelleLuvr]

For Michigan:
My X received those notifications in November when he was in arrears to his other X. If any agency is going to get the money, they will send it to the last known address available to them.

You'd be amazed at how many people were "SURPRISED" on the intercept when you could eventually wheedle out of them WHO took the money.

 

[OhReally?]

My question is, is the party who's refund is to be intercepted always notified of the intercept?

By law, they are supposed to be for each tax year. Unless that has changed.

It just seems that there are an awful lot of people who post here about refunds being intercepted who are surprised by the fact that they're not getting their refund.

So... notification a sure thing?

In my state, intercept is a given in that I don't have to file anything to request it, as long as the NCP is $500+ in arrears. Is that not a fairly standard practice?

That practice varies from state-to-state. In Ohio, one has to be in arrears just $150 bones to get on the intercept list. But if one's support order is not through a CSEA, then I can see how it could not be subjected to the possible intercept action, at least not automatically.

 

[TinkerBelleLuvr]

For those who thing that a tax intercept is the magic bullet:
In addition to the intercept, the tax payor must also FILE a return AND have a refund coming. If they file, but owe, they won't get it.

Secondly, monies due the government come first. So, if there are outstand tax liens, student loans, etc, they get their money first.

 

[CJane]

For those who thing that a tax intercept is the magic bullet:
In addition to the intercept, the tax payor must also FILE a return AND have a refund coming. If they file, but owe, they won't get it.

Secondly, monies due the government come first. So, if there are outstand tax liens, student loans, etc, they get their money first.

All true.

No one should EVER hold their breath for a refund to magically appear. I was SHOCKED and AMAZED last year when CSE intercepted Asshat's state return. SHOCKED because he filed a return and AMAZED that they intercepted it in time.

 

[OhReally?]

For those who thing that a tax intercept is the magic bullet:
In addition to the intercept, the tax payor must also FILE a return AND have a refund coming. If they file, but owe, they won't get it.

Good point. It's amazing how many people don't seem to realize that not everybody gets a refund. If they're that hellbent on a tax intercept, then they can pay what the parent owes instead.

 

[hearts41]

All true.

No one should EVER hold their breath for a refund to magically appear. I was SHOCKED and AMAZED last year when CSE intercepted Asshat's state return. SHOCKED because he filed a return and AMAZED that they intercepted it in time.

I am always amazed as well when I receive something from tax offset of x husband. I thought FL would send a letter every year stating they were offsetting but I only got one letter about five years ago. I have no idea if he gets a letter every year.

 

[StepMama22]

I don't think FL does send anything out. My husbands ex called us last year after she filed her taxes and said we should be getting a big ole fat check (she sounded just THRILLED). Of course she lied about how much (pennies..) but apparently she had no idea until the tax person told her..

 

[Gracie3787]

What is the name of your state? MO but N/A for this question

This was posted in another thread, but I didn't want to hijack...



My question is, is the party who's refund is to be intercepted always notified of the intercept?

It just seems that there are an awful lot of people who post here about refunds being intercepted who are surprised by the fact that they're not getting their refund.

So... notification a sure thing?

In my state, intercept is a given in that I don't have to file anything to request it, as long as the NCP is $500+ in arrears. Is that not a fairly standard practice?

Yes, NCP's actually are sent a couple of notices. The state CSE agency sends a notice, then the US treasury dept sends a notice, along with other info. After an intercept is done, the state CSE will send another notice to the NCP sating that the refund has been intercepted and it gives all the info about injured spouse, and what a NCP can do if they believe the refund was intercepted in error.

The key to all this is: Both the CSE and the IRS, AND treasury dept MUST have an accurate mailing address. Quite ofetn NCP's don't recieve the notices simply because they haven't kept everyone informed of the correct address. That's usually why alot of them are so "surprised" when their refund is suddenly intercepted.

 

[MrsK]

That IS a general practice but yes, some ppl are surprised by it.

Take, for example, US last yr, when I got a letter from LDR (Louisiana Dept of Revenue) that they were holding our state refund b/c DH was in arrears.

Except he was NOT in arrears.

Oh, but it turns out (as I found out only recently exactly why that happened) that they report every month your arrears to LDR, etc if you arent paid by the first of the month.

And you have til the last day of the month to pay before you are actually in "arrears" according to SES.

So when we filed our taxes in the first week of whatever month that was...and they didnt get our check for C/S until almost the last day of the month...so they levied the return b/c it was reported on the 2nd that he was in "arrears" even though technically, he wasnt late.

So yeah, we were actually REALLY surprised by that.

I told DH we're sending in the check early whatever month we file, and not filing our taxes until I see that check has cleared but before the 1st of the next month. I dont wish to be "surprised" again.

And next yr, we're setting it so that we dont get any state refund check back so this is never an issue again, because he would have to be a few $k behind for them to get the fed. return. We pay every month so that'll never happen. We just didnt get around to adjusting the state taxes last yr & now its too late.

I mean not that it was a HUGE deal...once the $ cleared to SES, we didnt have to pay c/s that month. But if you remember (I think I posted about it??), they LOST the $$ for like 2 months Big surprise there huh??