Section 380. Tax intercept

A. The department shall intercept state and federal income tax refunds due to obligors that owe support arrearages.

B. The Virginia Department of Taxation prescribes rules for interception of state tax refunds and notification to the person whose state tax refund is being intercepted.

1. The department may retain moneys up to the amount owed on the due date of the finalization notice from the department to the Virginia Department of Taxation.

2. The department may intercept state tax refunds when the arrearage equals at least $25.

3. State tax refund intercepts shall be disbursed in the same manner as support payments. Federal tax intercepts shall be disbursed as required pursuant to 42 USC § 664.

4. The department may not disburse the intercepted state taxes if the noncustodial parent has appealed the intercept action and the appeal is pending.

5. The department shall issue a refund to the noncustodial parent when one of the following occurs:

a. The intercept was made in error;

b. The noncustodial parent pays the arrearage in full after the Department of Taxation has been notified of the arrearage and before the tax refund is intercepted; or

c. The total amount intercepted is more than the amount of the arrearage owed at the time that notification of the tax intercept is received from the Department of Taxation, and the noncustodial parent does not agree to allow the department to apply the excess funds to any arrearage that accrued after certification for tax intercept.

Historical Notes

Derived from VR615-70-17 § 5.12, eff. February 28, 1990; amended, Volume 06, Issue 26, eff. October 24, 1990; Volume 07, Issue 15, eff. July 1, 1991; Volume 08, Issue 04, eff. July 1, 1992; Volume 08, Issue 19, eff. July 15, 1992; Volume 18, Issue 14, eff. April 24, 2002; Volume 31, Issue 10, eff. February 12, 2015.

Statutory Authority

§ 63.2-217 of the Code of Virginia; 42 USC § 651 et seq.