(a)

1. (1) Child support payments collected in open enforcement cases, with the exception of federal income tax refund offsets, are distributed first to the support obligation due in the month in which the payment was collected.
2. (2) The date of collection is the date the payment was received at the Arkansas Child Support Clearinghouse.
3. (3) Collections are applied in the following manner.

(c) TEA cases.

1. (1) In open enforcement cases where the custodial party is receiving TEA benefits, support payments received are paid first to the state up to the previous month’s grant amount.
2. (2) Any amount collected in excess of the unreimbursed grant is disbursed to the family.

(d) Former TEA cases.

1. (1) In open enforcement cases where the custodial party has assigned arrears, payments received are paid first to the custodial party up to the amount of support due in the current month.
2. (2) Any amount collected in excess of current support is applied to arrears owed to the family and then arrears owed to the state.
3. (3) If the current month’s support obligation and all arrears have been satisfied, excess payments are applied to any fees owed by the noncustodial parent, or if none, disbursed to the family.

(g) Split-debt cases.

1. (1) Federal tax refunds intercepted by the Office of Child Support Enforcement in split-debt cases will be applied to the assigned arrears.
2. (2) Any amount of federal tax intercept that remains will be refunded to the noncustodial parent.
3. (3) All other child support payments are disbursed to the custodial party.

(h) Federal and state income tax intercept.

1. (1) Amounts collected through federal income tax offset must be paid:

   1. (A) To reimburse foster care maintenance payments first;
   2. (B) Then to satisfy assigned arrears in TEA or former TEA cases; and
   3. (C) Then to the custodial party.
2. (2) Internal Revenue Service offsets received by the office may be distributed to reflect payments on the case or cases, but the actual disbursement of the payment may be held for up to six (6) months if the refund is subject to adjustment by the Internal Revenue Service.
3. (3) State tax intercepts are distributed first to current support, then to arrears, and then fees.

4. (4)

   1. (A) In non-TEA cases, if the case is certified and the custodial party notified the office in writing subsequent to the certification that the case is to be closed, the office will delete the certification and return any funds that may be intercepted after the effective date of the closure to the noncustodial parent.
   2. (B) If TEA arrears are owed to the state:

(i) The amount certified will be reduced to that amount;

1. (ii) A tax intercept up to the certified amount will be retained for arrears owed; and

   1. (iii) Any amount collected in excess of the debt owed to the state will be refunded to the noncustodial parent.