Tuesday, May 11, 2010

How long does it take for a IRS stimulus check to be intercepted when a parent owes back due child support?

My husband is owed over 20k from his ex. Her stimulus check would have been sent out sometime around July 9. How long does it take the child support agency to intercept? Also she has 2 other children. Would we get her childrens stimulus money too? Thank you!How long does it take for a IRS stimulus check to be intercepted when a parent owes back due child support?
What will happen if I owe both back taxes to IRS and back child support, state taxes, student loans, etc?





If you owe delinquent federal taxes, IRS will withhold the balance due from your refund. If your refund exceeds the amount of your delinquent federal taxes, IRS will adjust your split refund direct deposits under the bottom-up rule discussed earlier (see What if a mistake on my return decreases the amount of my refund?)





If you also owe delinquent state income taxes, back child support, or delinquent non-tax federal debts such as student loans, etc., the Department of Treasury's Financial Management Service (FMS) will deduct the past-due amounts from the payment that appears first on the payment file received from IRS (the IRS payment file orders accounts from the lowest to the highest routing number). If the debt exceeds the payment designated for the account that appears first on the payment file, FMS will reduce the payment designated for the account that appears next, etc.





You will receive a letter explaining any adjustments IRS made to your refund amount and direct deposit(s). You will receive a separate letter from FMS explaining any offset amount, the agency receiving the payment, the address and telephone number of the agency, and amount of your refund/direct deposit that was offset. If you dispute the debt on the letter you receive from FMS, you should contact the agency shown on the notice, not IRS, since IRS has no information about the validity of the debt.How long does it take for a IRS stimulus check to be intercepted when a parent owes back due child support?
The offset will happen shortly after the rebate is cut, however it can take up to 6 months for you to receive it.





If FMS knows that the ex is filing as Single then it will usually flow to him within 3 to 6 weeks, depending upon how quickly the Child Support Enforcement Agency processes it once they receive the funds from FMS.





If FMS doesn't know the ex's filing status or knows it to be Married then they must sit on the funds for several months to give any current spouse time to file an Injured Spouse claim. Unfortunately the IRS cannot tell FMS what the filing status was due to privacy laws so unless the ex advises FMS of her filing status, the payment to him will be delayed.
It is intercepted before it ever goes out. They don't issue checks to people that owe taxes, back child support, or have estimated taxes due. I am not sure how they would split up the stimulus check. You can maybe call and ask the IRS or they have a web site (irs.gov) that might explain it.

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