Office and Division: Office of Economic Security Food and Energy Division
Number: OM-FEA-2016-0004
Program Area: SNAP
Issue Date: August 8, 2016
Title: Tax Refund Intercept Program
Office Director: Barry Pardus
Memo Type: Operational
Division Director: Lena Wilson
Pertinent State/Federal Statute and/or State/Federal Rule: 4.801.41 D
Expiry Date: June 30, 2018
Outcome: Ensure that counties understand the State Income Tax Refund Intercept process for the Food Assistance, Colorado Works, County Diversion, and Adult Financial Programs
Effective Date: Immediately
Key Words: Income Tax Intercept, Food Assistance, Colorado Works, Adult Financial Intended Recipients: This communication has been sent to all county departments of human/social service directors. Please forward pertinent information on to staff members as you deem necessary. Purpose: This operation memo provides county departments of human/social services and sub recipients information on the State Income Tax Refund Intercept process for the Food Assistance, Colorado Works, County Diversion, and Adult Financial programs. Action: Counties will be provided the opportunity to remove individuals and/or claims from the tax intercept file by August 29, 2016 and document cause through case comments. Addresses must be verified and/or updated by the county technician in CBMS. Additionally, the Department of Revenue (DOR) will verify addresses. The listing of the 2015 DOR Annual County referral files will be available in COGNOS under the DOR folder as Annual List of Cases Referred to DOR by County-All Counties (PDF) or Annual List of Cases Referred to DOR by County-Export-All Counties (excel) reports after or around August 11, 2016. It is the responsibility of the county to validate that the liable individuals are correct and that the addresses are correct. Counties without cases for intercept may not have a file to validate. A letter titled, Intent to Offset Intercept Notices, will be mailed out to the liable individuals remaining on the intercept list on August 29, 2016. This notice informs liable individuals of delinquent claims that the Colorado Department of Revenue tax returns and/or rent rebates may intercept. 1
Between Noticing and the Final Submission of Debtor Records to DOR In the period between the noticing and December 31, 2016, clients have the right to cooperate with their county worker to submit any documentation to prove the claim is not justified, appeal if they think their claim should not be submitted for tax intercept, or sign a repayment agreement and begin making payments, which will remove the case from the intercept process. During this time, workers with appropriate security access can also remove names from the annual file, make demographic changes such as address corrections, and take other appropriate actions, such as compromising or lowering a claim balance when warranted. Updates to claim balances are sent daily. In order to access the records and to delete a file, security access must be given to the State Tax Intercept File Details page in Benefit Recovery, which is CBMS Security Profile 155, along with DOR Worker as the User Type. Final List of Cases to DOR In early January 2017, CBMS will generate a final electronic file of claim members whose debt is eligible for State Tax Refund Intercept. The file will be transmitted to DOR. A report will be available in COGNOS of all individuals referred to DOR for tax intercept for this year. This list will be available under the DOR folder in COGNOS and called, Annual List Cases Interfaced to DOR. Once this file is sent to DOR, there will be no way to add an individual to the State Tax Intercept process until the next year. Workers must ensure addresses are current in CBMS. If a case is closed, the address can still be changed through Benefit Recovery. Reports Available in COGNOS There are four reports available in COGNOS in the DOR folder to assist counties with monitoring the State Tax Intercept process. • Annual List Cases Interfaced to DOR – This report includes all individuals that were referred to the Department of Revenue to have their taxes intercepted and applied to their CBMS claims. This report is available to individuals with County Supervisor access in COGNOS. • List of Daily Automated Payments and Refunds – This report includes clients and claims that have had money applied to their balances on a particular date. This report is available to individuals with County Supervisor access in COGNOS. • State Income Tax Intercept YTD – List of Daily Automated Payments and Refunds Report – This report includes claim payments and refunds received by DOR and applied to CBMS for the current year-to-date. This report is available to individuals with County Supervisor access in COGNOS. • DOR Transactions – This report is a daily report that includes any payment sent from the Department of Revenue. This report also includes innocent spouse transactions. Please
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remember that you do not need to make any adjustments for innocent spouse transactions; this is done at the state level. CBMS also sends a daily update file to the Colorado Department of Revenue, which includes any claim update activity that occurred within the past day. There is no report that is generated in COGNOS showing these activities. Background: Each year, counties must ensure that accurate procedures are followed to permit tax intercept of debts due in response to claims and/or overpayments. Supersedes: Not Applicable Contact: Sheryln Stephens, Food Assistance,
[email protected], 303-866-3860 Veronica Brandl, Systems Manager,
[email protected], 303-866-2740
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