(a) The Federal Offset Program helps states collect delinquent child support debts owed to the custodial party and/or the state by the following remedies:

1. (1) Federal Income Tax Refund Offset Program;
2. (2) Administrative Offset Program; and
3. (3) Passport Denial Program.

(b) Certification requirements.

1. (1) Certification requirements apply to all available remedies in the Federal Offset Program.

2. (2)

   1. (A) In intergovernmental cases, the initiating state will certify for federal offset.
   2. (B) Past due support.

(i) May include medical support only if a specific dollar amount is included in the order.

1. (ii) May include spousal support if the custodial party is living with the child and spousal support and child support obligations are included in the same order.

   1. (iii) May not include fees or court costs or any other non-child support debts owed to the state or to the family.

2. (3) The Office of Child Support Enforcement must:

   1. (A) Verify the accuracy of the arrears;
   2. (B) Have a copy of the order, including any modifications;
   3. (C) Obtain a copy of the payment record or an affidavit signed by the custodial party attesting to the amount of support owed;
   4. (D) Verify the accuracy of the noncustodial parent’s name, Social Security number, and current address;
   5. (E) Have the custodial party’s current, or last known, address; and
   6. (F) Certify that the information is accurate and that the state has afforded the noncustodial parent all due process rights.

3. (4) Selection for the Federal Offset Program is as follows and is mandatory if the noncustodial parent’s arrears balances meet the following criteria:

   1. (A) The combined TEA arrears from all cases must be at least one hundred fifty dollars ($150); and

   2. (B) The combined non-TEA arrears from all cases must be at least five hundred dollars ($500).

      1. (c) Due process.

4. (1)

   1. (A) Noncustodial parents who meet the above criteria will be notified by a Pre-Offset Notice before being certified for offset.
   2. (B) The Pre-Offset Notice will inform the noncustodial parent of the right to contest that past due support is owed or the amount of past due support, as well as the procedures for requesting an administrative hearing to contest the offset.
   3. (C) Requests for an administrative hearing must be received within thirty (30) days of the date of the Pre-Offset Notice.

5. (2)

   1. (A) Past due child support will remain subject to collection by offset until paid in full in cases open for enforcement services.
   2. (B) Any past due support that accrues after the notice is sent will be added to the debt and is subject to offset without further notification.
6. (3) If past due support is paid to a zero dollars ($0) balance or is modified to a zero dollars ($0) balance and then accrues an arrearage at a later date, a new Pre-Offset Notice will be sent to the noncustodial parent prior to recertification for the new arrearage.

7. (4) A notice will be sent annually as a reminder to noncustodial parents who continue to meet the criteria for the Federal Offset Program.

   1. (d) Offset priority.

8. (1)

   1. (A) The United States Department of the Treasury’s Financial Management Service operates the Treasury Offset Program, which maintains a centralized Master Debtor File.
   2. (B) This file contains a list of taxpayers who owe debts to various agencies, including child support debts submitted by states to the office for federal income tax refund and administrative offset.
   3. (C) Funds that are offset for repayment of past-due child support are forwarded through the United States Department of Health and Human Services to the states that submitted the noncustodial parent for offset.

9. (2) Federal Management Service applies payment offsets, both tax refund and administrative, to a noncustodial parent’s federal debts in the following order:

   1. (A) Federal tax debt (Internal Revenue Service);
   2. (B) Past due child support (TEA and non-TEA cases);
   3. (C) Other federal debts (education loan debts); and
   4. (D) State tax debts.

10. (3)

    1. (A) If multiple states submit the same noncustodial parent, the state with the earliest submission is first in the distribution of offsets.
    2. (B) If a case was deleted and is then recertified at a later date (for example, if a case is closed for enforcement and then reopened), the priority for that case is based on the date the recertification was processed.