California Dept. of Social Services Fraud Bureau 744 P St. MS 9-11-26 Sacramento, CA 95814 (916) 653-1826 Main Line (916) 651-5009 Fax Welcome to Tax Intercept Training 2014 Russell Askew Offset Program Coordinator (916) 653-1824 [email protected]a.gov [email protected].gov Joseph Zulueta Offset Program Coordinator (916) 651-5352 [email protected][email protected]
Welcome to Tax Intercept Training 2014. California Dept. of Social Services Fraud Bureau 744 P St. MS 9-11-26 Sacramento, CA 95814 (916) 653-1826 Main Line (916) 651-5009 Fax. Russell Askew Offset Program Coordinator (916) 653-1824 [email protected][email protected]. - PowerPoint PPT Presentation
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California Dept. of Social Services Fraud Bureau
744 P St. MS 9-11-26Sacramento, CA 95814
(916) 653-1826 Main Line(916) 651-5009 Fax
Welcome to Tax Intercept Training
2014
Russell AskewOffset Program Coordinator(916) [email protected]@dss.ca.gov
Joseph ZuluetaOffset Program Coordinator(916) [email protected]@dss.ca.gov
Basics When? Why? What? Who? How?
Modification record types• Tumbleweed• WIS Reports• Reversals & Adjustments• Using WIS• Hearings• SSA & Offsets• Annual Forms• Safeguards• FNS 209
Training Agenda
CDSS (California Department of Social Services)- Administers county-run welfare programs in California
Fraud Bureau- Administers administrative offset program to recover overpaid CalWORKs and CalFresh benefits
OPC (Offset Program Coordinators)- Russell Askew & Joseph Zulueta
WIS (Welfare Intercept System)- CDSS Fraud’s offset database
TOP (Treasury Offset Program)- The US Dept of Treasury’s offset program and database that offsets federal tax refunds, SS benefits, and federal salaries
Definitions
IRS (Internal Revenue Service)- Federal tax and payment agency that sends payment data to TOP- Provides addresses from federal tax returns (FTI)
FTB (Franchise Tax Board)- State tax agency that offsets state tax refunds, state salaries and California State Lottery winnings
SSA (Social Security Agency)- Payment agency sends data to TOP for offset – retirement, survivor and disability ONLY
Definitions
FMS (Financial Management Service)- Division within the USDT that runs the Treasury Offset Program
FNS (Food and Nutrition Service)- Division within the USDA that runs SNAP
SNAP (Supplemental Nutrition Assistance Program)- Formerly FSP or Food Stamp Program
FTI (Federal Tax Information)- Information sourced from federal tax returns (i.e. name, address, SSN)
Definitions
O-Tech (Office of of Technology Services)- Responsible for Tumbleweed & mainframe that hosts WIS, MEDS- Formerly DTS (Dept. of Technology Services)
MEDS (Medi-Cal Eligibility Data System)- California Dept of Health Care Services’ eligibility & benefit data system
STS (SecureTransport™ Server) aka ‘Tumbleweed’- Server that allows counties and state to share data securely
Definitions
CalWIN (CalWORKS Information Network)California Work Opportunity and Responsibility to Kids
LEADER (Los Angeles Eligibility, Automated Determination, Evaluation and Reporting)C-IV
Consortia
Claim establishedCost effectiveDebtor not receiving CalWORKs or CalFresh
foreclosures)Court-ordered restitution (judgment debts)Debtor is nonresponsive to NOAFailure to make payments on a regular basis90 days after date claim becomes delinquentNo time limit for tax intercept
Basics – When?
DUE PROCESS!
Basics – Why?
Amount of claim ONLYMinimum for FTB offset - $10Minimum for TOP offset - $25CalWORKS – FTB ONLYCalFresh – TOP first, then FTB
Basics – What?
Adults, 18 years old and olderCalFresh – ALL adults in household equally
responsible for entire claim amountCalWORKs
1st Aided caretaker relative2nd remainder of AUNEVER unaided caretaker relative
Basics – Who?
Electronically Thru consortiaDirectly to TumbleweedFloppies, CDs, files attached to e-mails to State
Offset Program Coordinator
• Manually DPS 249 Temp 1722A
Basics – How?
DPS 249 Welfare Intercept System County Transaction
ALL claims in WIS keyed by:Two-digit county codeDebtor SSNDelinquency Date
Basics – How?
County Code:Alameda County
SSN:Margaret Blaine
Date in YYYYMMDDJanuary 1st, 2008
Basics – How?Example A:
0112300456720080101
County Code:Yuba County
SSN:Max Capricorn
Date in YYYYMMDDDecember 31st, 2001
Basics – How?Example B:
5899900991920011231
DPS 249
Record Type 1 – EstablishFTB Offset Example
29 2011 WESTx
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
146
RO
R = Required
O = Optional
MUST INCLUDE ADDRESS
35 to 45 days
fromdate of
submission
to WIS to offset.
R
RR
R R
R
RR
RR
RO
O
O
Record Type 1 – EstablishTOP Offset Example
29 2011 WESTx
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
RO
R = Required
O = Optional
Automatically uses IRS address
135 to 210 days
from date of
submission to
offset
O
RR
O O
R
OR
RR
RO
O
O
257
Record Type 2 - Decrease
29 2011 WEST x
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
RO
R = Required
O = Optional
O
RR
O O
R
OO
RO
RO
O
O
25
70
This is the amount the debt will be decreased by
Record Type 3 - Delete
29 2011 WEST x
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
O
R = Required
O = Optional
O
RR
O O
R
OO
RO
RO
O
O
Record Type – 3 will eliminate balances for ALL debts under that delinquency date
Record Type 4 – RefundTOP Offsets ONLY
29 2011 WESTx
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
RO
R = Required
O = Optional
O
RR
O O
R
OO
RO
RO
O
O
160
NOTE: Although FTB and SSA do not reverse offsets, SS recipients can receive economic stimulus payments, so use this for ALL refunds of federal offsets
Record Type 7 - Increase
29 2011 WESTx
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
O
R = Required
O = Optional
O
RR
O O
R
OO
RO
RO
O
O
57
This is the amount the debt(s) will be increased by. Will generate new pre-offset notices from CDSS and FMS (TOP), but not FTB, with new calculated total amount
R
16
Record Type 8 – SuspendTOP Offsets ONLY
29 2011 WEST x
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
O
R = Required
O = Optional
O
RR
O O
R
OO
RO
RO
O
O
257.00
Record Type-8 is useful for debtors who have requested a hearing or filed for bankruptcy
R
Any cents needs to be dropped to keep the amount to the whole dollar. So $257.51 becomes $257.00
Record Type 9 – ReactivateTOP Offsets ONLY
29 2011 WEST x
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
O
R = Required
O = Optional
O
RR
O O
R
OO
RO
RO
O
O
No amount required as of March, 2009.
Record Type A – Add Alias
29 2011 WESTx
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
O
R = Required
O = Optional
O
RR
O O
R
OR
RR
RO
O
O
Record Type B – Address Change
29 2011 WEST x
5577777777
M23SSF22
04-13-2006
Gartain Parshow
D
Harriet Hardworker
44 W. Made Up Street
Californiaville CA 00018
O
R = Required
O = Optional
R
RR
R R
R
RO
RO
RO
O
O
Label all CDs and floppiesLegiblyCounty nameRecord count Include Temp 1722 A
WIS506R1/WIS606R1WIS processes as over collectionOffsets that could not post to a specific debt Review for over collection at county level and
adjust WIS as neededIncluded in total on remittance advice
WIS Reports
ftbint & topintFTB/TOP Intercept report, formerly
WIS507R1/WIS607R1Offsets to be posted to accounts
When you have data in BOTH the intercept AND intercept error files, you must ADD the amounts for each offset from both the intercept & intercept error files
WIS Reports
ftbpre & toppreFTB/TOP Pre-Offset Notice RosterFormerly WIS210R1/WIS360R1Debtors who have been mailed a 30- or 60-day
pre-offset warning noticeFor your recordsMPP 20-406
WIS Reports
toprevTOP Intercept Reversal report, formerly
WIS609R1Reversals of previous offsets
5 or 6 years previousTOP restores amount reversed to balance in
systemReview all reversals‘TOP Trace No.’ in ‘Display Transaction’ screen
WIS Reports Reversals
• Determine validity of claim If claim is invalid, contact OPC to close in
TOP Manual bypass to prevent future offsets Watch for ‘double-dipping’ - county refund
and IRS reversal If claim is valid – Debtor has effectively
reestablished the claim Submit increase or Record Type 7 (RT-7) to
correct balance. This will be forwarded to TOP as an overlay record.
WIS Reports Reversals
Reversals are here to stay! IRS reverses offsets at their own discretionCounty & state agencies have no controlDebtors may submit Form 8379 Injured Spouse
AllocationIRS never reveals reason for reversal
WIS Reports Reversals
WIS Reports Reversals
Initial report‘lending’ county
WIS Reports Reversals
Initial report
‘borrowing’ county
WIS Reports Reversals
Secondary report
‘lending’ county
WIS Reports Reversals
Secondary report‘borrowing’ county
WIS Reports Reversals
Online access – direct connectionView your county’s debtors / debts onlyModifications by submissions onlyGen 1321 forms for access requests availableLogon ID & instructions e-mailed to youYour emulation software may differ
Using WIS
HWDC Logon Screen
Warning Message Screen
(ENTER to continue)
Main Menu(enter SSN)
Recipient Profile Menu
Name History Screen
Transaction List Screen
Address History List
Screen
Recipient Profile Screen
Transaction Display Screen
Address History Display Screen
‘PF’ keys along bottom of screen contain navigation information.
MPP 20-403.24 Hearings & Tax interceptChanges delinquency date
Claim awaiting hearing decision not considered delinquent
Renotice clients after hearing decision
Hearings
MPP 20-408 “Counties shall refund excess money
intercepted to the recipient within ten (10) calendar days after the decision has been made to refund money regardless of whether or not the counties have received the intercepted funds.”
Refund individuals offsetRefund estate if deceasedDo not return funds to state for unlocatablesPrograms for unclaimed property
Refunds
• Social Security offsets ONLY exception is SSIStimulus payments, regardless of recipient, are
not exemptQuick-fixes
Write “RUSH” in BIG BOLD LETTERS on Temp 1722A
The SSA & Offsets
Required annual forms
1. Limited Assignment of Delinquent RestitutionAllows CDSS to recover debts on county’s
behalf2. Certification of Correctness of Delinquent Restitution
Due to Offset Program Coordinator Nov 153. Safeguard Activity Report
WIS balance files will be sent to each county on Tumbleweed
2 weeks to balance WIS to county recordsImmediately return all modifications to Offset
Program Coordinator (Russell or Joseph) for processing
WIS – County Balancing & Reconciliation
Pub 1075 is considered the guideline for IRS/FTB/SSA data.
Located at http://www.irs.gov/pub/irs-pdf/p1075.pdf
Safeguards
All files transmitted electronically MUST be encrypted with password phoned in or sent separately
http://www.pkware.com/download-softwareData sent manually, such as paper copies, CDs, floppies, MUST be sealed in envelope within envelope, marked CONFIDENTIAL and TO BE OPENED BY ADDRESSEE ONLY
Safeguards - Data Transmission
ALL ACCESS TO FTI IS ON A NEED-TO-KNOW BASIS ONLY
Treat every SSN as if it were your ownHide FTI when coworker steps in cubicleLock computer and FTI when leave cubiclePasswords should not be recognizable wordsDestroy all media, log with witness sign-off
Line 14, Cash (+)Cash, money orders, checksFTB offsetsTOP offsets
Remarks in #29NOT for recording cash refunds (Line 20a)
FNS 209 - secrets revealed….
Line 15, Food Stamps (+)Food coupons (prior to June 17th)EBT account deductions
Subsequent to issuanceFNS 471 & FNS 135 supporting doc’sNOT for recording non-cash refunds (Line 20b)
FNS 209 - secrets revealed….
Line 16, Recoupment (+)Allotment reductionNOT for offsetting restored lost benefits NOT for deducting EBT accounts subsequent to
issuance (Line 15)
FNS 209 - secrets revealed….
Line 17, OffsetBalancing over- and under-paymentsCalifornia does not allow (Lopez v. Espy)Leave it blank….
FNS 209 - secrets revealed….
Line 18a, Total (14 + 15 + 16 + 17)Line 18b, Cash Adjustment (+/-)
Corrections & amendments to Line 14 previous QErrors, bad checks, monopoly moneyNOT for recording ICT’s (Line 3b)NOT for recording refunds (Line 20a)Reversal $’s, but not #’s (Line 3b – IF
closed, etc)Remarks in #29
FNS 209 - secrets revealed….
Line 18c, Non-Cash Adjustments (+/-)Corrections & amendments to Lines 15, 16 &
17 from previous QErrors – math or accounting
Remarks in #29NOT for corrections to collections from Line 5
(Line 19)
FNS 209 - secrets revealed….
Line 19, Transfers (+/-) Collections from previous Qs listed on Line 5Cash & non-cash, all the sameRemarks in #29
Line 20a, Cash Refunds (+)Refunds from Line 14 previous QRemarks in #29NOT for IRS reversals
Report # on Line 3bReport $ on Line 18b
FNS 209 - secrets revealed….
Refunding TOP offset admin fee$17 to $27
USDT/FMS Post-offset document shows TOTAL
WIS files do NOT show total Calculate the differenceContact OPC for USDT/FMS offset info
FNS 209 - secrets revealed….
FNS 209 - secrets revealed….
Line 20b, Non-Cash Refunds (+)Refunds from lines 15, 16 & 17 from previous
QRemarks in #29
Line 21, Total Sum of lines 18a, 18b, 18c, 19, 20a, 20b
Line 22, Retention 35% Line 21 Column A IPV 20% Line 21 Column B IHE
FNS 209 - secrets revealed….
Line 23, Net Cash Collection (14 + 18b + 20a)Line 24, Total Retention (22A + 22B)Line 25, LOC Adjustment (23-24)Line 26, Reimbursements due FNS
California does not use this option, leave blankLine 27, Billing Adjustments (prior FNS 46)Line 28, Total LOC Adjustment (25-27)