A support collection received by the department as a result of a federal income tax refund offset shall be distributed as follows:

1. (1) For a family currently receiving assistance, the department shall retain up to the amount of unpaid support obligation accrued under an assignment or the amount necessary to reimburse the department for the cumulative amount of unreimbursed assistance paid to the family, whichever is less. Any remaining amount shall be paid to the family;
2. (2) For a family that no longer receives assistance, the department shall retain amounts which represent unpaid support that accrued under an assignment up to the amount necessary to reimburse the department for the cumulative amount of unreimbursed assistance paid to the family. Any amount remaining shall be paid to the family; and

3. (3) For a family that has never received assistance, the department shall distribute the collection to the family.

   If the amount collected through the tax refund offset is based on a joint return, the department may delay distribution of the collection to the applicant or recipient until notified that the unobligated spouse's share of the refund has been paid or up to six months from the date the offset was paid to the department, whichever is earlier.

   If the amount collected through the tax refund offset exceeds the amount of the unpaid support obligation, the department shall refund the excess to the noncustodial parent or to the parties filing a joint return within 45 days after it is collected.

   Cross References:

   Distribution of support collected, Pub. L. No. 104-193, § 302, 110 Stat.2200.

   Distribution of collected support, 42 U.S.C. § 657.

   Collection of past-due support from federal tax refunds, 42 U.S.C. § 664.

   Request for collection of past-due support by federal tax refund offset -- Distribution of collections, 45 C.F.R. § 303.72(h).

Source: 13 SDR 89, effective January 19, 1987; 24 SDR 72, effective November 30, 1997; 27 SDR 35, effective October 1, 2000; 35 SDR 49, effective October 1, 2008; 41 SDR 108, effective January 6, 2015.

General Authority: SDCL 28-7A-3(9).

Law Implemented: SDCL 25-7A-44 , 28-1-65 , 28-1-66 , 28-7A-3(9).

Prior versions effective: 2008-10-01.