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FTB Collects on Accounts the Owe Both Child Support and Taxes

June 2009 - On May 11, 2009, we started collecting on child support dual liability cases. Previously, we did not pursue collection actions on taxpayers who also owed a child support obligation. Other than the annual notice, these taxpayers have not been contacted about their tax debt. In some cases, the taxpayer accounts have been flagged, protected from collections due to a Child Support flag, for more than five years. We anticipate this will affect 145,000 taxpayers.

Revenue and Taxation Code Section 19271 and 19276 provided that our obligation to collect child support delinquency takes priority over the collection of delinquent income tax liabilities until all the following occurs:

  • The California Child Support Automation System is operational with all 58 counties on board. The Department of Child Support Services created this new collection system, so they could pursue collections separately.
  • A Letter of Revocation is received from the Department of Child Support Services and they no longer require our assistance on collecting child support debt.
  • It must be January 1 following receipt of Letter of the Revocation.

The new child support system is working with the 58 counties. Also, we received the Letter of Revocation on December 17, 2008, which allows us to resume collecting income tax debts beginning January 1, 2009.

First, taxpayers will receive a Change of Liability notice once the Child Support flag is removed. If we don’t receive a response, collection actions will begin. Two additional notices, Income Tax Due and Final Notice, will be issued before any levies are sent to an employer.