Child support staff report IRS error on tax intercepts; internal hire pending

Child support staff told the Judicial and Law Committee an internal candidate has accepted an offer to fill the vacant program assistant position with a tentative start date of April 7.

The staff member, identified in the meeting as Josie, also reported an error by the U.S. Department of the Treasury in which letters were sent to obligors saying federal tax refunds had been intercepted for child support, but the actual interceptions were not completed. Josie told the committee the agency reported six states were most affected — Ohio, Michigan, Illinois, Indiana, Missouri and Wisconsin — and that Wisconsin’s exposure was reported at $2,300,000.

Josie said the Department of Treasury sent letters to notify people an interception had occurred but “then just forgot to actually do it,” and that Wisconsin is working with the IRS to identify affected individuals so the state can follow up. She said more information will follow as states coordinate with the IRS.

Committee members asked operational questions: one member noted the county’s financial system name in the report may need updating, and another asked how a paternity-establishment rate could exceed 100 percent. Josie explained the calculation: comparing the number of children who needed paternity established in the previous federal fiscal year to the number established in the current federal fiscal year; if the current-year established number exceeds last year’s need, the rate can exceed 100 percent.

No action was required; the committee received the report and had no further questions.