May 14, 2024 The IRS understands the importance of child support payments in helping families make ends meet, and we continue to work hard to prevent any disruption to these vital payments related to federal tax refund offsets. These payments are continuing – both for states and Tribes—and the IRS will remain focused on not disrupting child-support collections, while respecting the current taxpayer privacy laws. Contrary to published reports, Native American Tribes’ access to federal tax payment offsets through arrangements with states has not changed. The IRS is available to engage with Tribes with questions regarding this matter. The IRS is working with Congress on potential legislative changes to provide additional flexibilities to help states and Native American Tribes. The IRS is also open to considering extensions for states working to bring the administration of their child support programs into compliance with new guidelines. What is the status involving Indian tribal governments’ access to child support payments related to federal tax refund offsets? Contrary to published reports, Indian tribal governments’ access to federal tax offsets through the states has not been cut off. Tribes are continuing to work through the states and sending them information that can be shared with the IRS. The IRS has not made any changes in this area. To enable participation in the tax refund offset program, Indian tribal governments have been participating as a contractor with their state child support agencies. In this role, they are authorized to receive the Federal tax information, including tax refund offsets, that State agency contractors are authorized to receive under current law. This relationship between the states and Indian tribal governments is not affected in any way by the potential October deadline. The interaction between the Indian tribal governments and state child support agencies is a relationship between those two groups. The IRS is aware of one state that has recently ended that relationship with tribes on collecting information and sharing with the IRS. This was a state decision, not an IRS decision. The IRS has not suspended states’ submissions of child support offsets for tribal members. Is the IRS making a change to state child support agencies access to tax information in October? The IRS is not removing state child support agencies’ access to federal tax information in October. The IRS has requested that by Oct. 1, 2024, child support agencies submit plans with specific timelines for mitigating contractor access to federal tax information beyond what is statutorily authorized by the Internal Revenue Code (IRC). After Oct. 1, 2024, the IRS will review all mitigation plans, consider each plan’s compliance with the Internal Revenue Code, and work in partnership with State child support agencies on the next steps and implementation of the plans. The IRS emphasizes it has not made any final decisions, and the agency remains open to potentially extending the Oct. 1 deadline. This is a complex area of the law, and the IRS continues to work to minimize burden on states and Indian tribal governments where possible. Are there legislative proposals being considered? Yes, there are several items. The Treasury Department’s Green Book proposal for Fiscal Year 2025 includes a legislative proposal that could help address concerns for Indian Tribal governments. There is also pending legislation in Congress: S. 3154, Tribal Child Support Enforcement Act was introduced in October 2023 and is pending in the Senate Finance Committee H.R. 7906, To improve the effectiveness and available tools of State and tribal child support enforcement agencies was introduced in April 2024 and is pending in the Ways and Means Committee. Summary The IRS will remain in close contact with federal agencies, the states and Indian tribal governments as work in this area continues. The IRS will remain focused on not disrupting child-support collections taking place while respecting the current taxpayer privacy laws.
