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Welcome to Tax Intercept Training 2014

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 russell.askew@dss.ca.gov taxintercept@dss.ca.gov.

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Welcome to Tax Intercept Training 2014

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  1. WelcometoTax 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 russell.askew@dss.ca.gov taxintercept@dss.ca.gov Joseph Zulueta Offset Program Coordinator (916) 651-5352 joseph.zulueta@dss.ca.gov taxintercept@dss.ca.gov

  2. Training Agenda • Basics • When? • Why? • What? • Who? • How? • Modification record types • Tumbleweed • WIS Reports • Reversals & Adjustments • Using WIS • Hearings • SSA & Offsets • Annual Forms • Safeguards • FNS 209

  3. Definitions 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

  4. 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

  5. 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)

  6. 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

  7. Consortia CalWIN (CalWORKS Information Network) • California Work Opportunity and Responsibility to Kids LEADER (Los Angeles Eligibility, Automated Determination, Evaluation and Reporting) C-IV

  8. Basics – When? • Claim established • Cost effective • Debtor not receiving CalWORKs or CalFresh benefits • No litigation pending (hearings, bankruptcies, foreclosures) • Court-ordered restitution (judgment debts) • Debtor is nonresponsive to NOA • Failure to make payments on a regular basis • 90 days after date claim becomes delinquent • No time limit for tax intercept

  9. Basics – Why? DUE PROCESS!

  10. Basics – What? • Amount of claim ONLY • Minimum for FTB offset - $10 • Minimum for TOP offset - $25 • CalWORKS – FTB ONLY • CalFresh – TOP first, then FTB

  11. Basics – Who? • Adults, 18 years old and older • CalFresh – ALL adults in household equally responsible for entire claim amount • CalWORKs • 1st Aided caretaker relative • 2nd remainder of AU • NEVER unaided caretaker relative

  12. Basics – How? • Electronically • Thru consortia • Directly to Tumbleweed • Floppies, CDs, files attached to e-mails to State Offset Program Coordinator • Manually • DPS 249 • Temp 1722A

  13. Basics – How? • DPS 249 • Welfare Intercept System County Transaction Document • http://www.cdss.ca.gov/cdssweb/entres/forms/English/DPS249.PDF • Testing for online version • Must have WIS access

  14. Basics – How? • ALL claims in WIS keyed by: • Two-digit county code • Debtor SSN • Delinquency Date

  15. Basics – How? Example A: 0112300456720080101 SSN:Margaret Blaine County Code:Alameda County Date in YYYYMMDDJanuary 1st, 2008

  16. Basics – How? Example B: 5899900991920011231 SSN:Max Capricorn County Code:Yuba County Date in YYYYMMDDDecember 31st, 2001

  17. DPS 249

  18. Record Type 1 – EstablishFTB Offset Example x O R R WEST 29 2011 R R R O 5577777777 R M23SSF22 04-13-2006 R O R Gartain Parshow D 146 O R Harriet Hardworker 44 W. Made Up Street R R R Californiaville CA 00018 R= Required O= Optional 35 to 45 days from date of submission to WIS to offset. MUST INCLUDE ADDRESS

  19. Record Type 1 – EstablishTOP Offset Example x O R R WEST 29 2011 R R R O 5577777777 R M23SSF22 04-13-2006 R O R Gartain Parshow D O O Harriet Hardworker 44 W. Made Up Street 257 O O O Californiaville CA 00018 R= Required O= Optional 135 to 210 days from date of submission to offset Automatically uses IRS address

  20. Record Type 2 - Decrease O R R WEST 29 2011 R x R R O 5577777777 R M23SSF22 04-13-2006 O O O Gartain Parshow D 70 O O Harriet Hardworker 44 W. Made Up Street 25 O O O Californiaville CA 00018 R= Required O= Optional This is the amount the debt will be decreased by

  21. Record Type 3 - Delete O R R WEST 29 2011 R x R O 5577777777 R M23SSF22 04-13-2006 O O O Gartain Parshow D O O Harriet Hardworker 44 W. Made Up Street O O O Californiaville CA 00018 R= Required O= Optional Record Type – 3 will eliminate balances for ALL debts under that delinquency date

  22. Record Type 4 – RefundTOP Offsets ONLY x O R WEST 29 2011 R R R R O 5577777777 R M23SSF22 04-13-2006 O O O Gartain Parshow D O O Harriet Hardworker 44 W. Made Up Street O O O Californiaville CA 00018 160 R= Required O= Optional 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

  23. Record Type 7 - Increase x O R R WEST 29 2011 R R R O 5577777777 R M23SSF22 04-13-2006 O O O Gartain Parshow D O O 57 Harriet Hardworker 44 W. Made Up Street 16 O O O Californiaville CA 00018 R= Required O= Optional 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

  24. Record Type 8 – SuspendTOP Offsets ONLY O R R WEST 29 2011 R x R R O 5577777777 R M23SSF22 04-13-2006 O O O Gartain Parshow D O O 257.00 Harriet Hardworker 44 W. Made Up Street O O O Californiaville CA 00018 Record Type-8 is useful for debtors who have requested a hearing or filed for bankruptcy R= Required O= Optional Any cents needs to be dropped to keep the amount to the whole dollar. So $257.51 becomes $257.00

  25. Record Type 9 – ReactivateTOP Offsets ONLY O R R WEST 29 2011 R x R O 5577777777 R M23SSF22 04-13-2006 O O O Gartain Parshow D O O Harriet Hardworker 44 W. Made Up Street O O O Californiaville CA 00018 R= Required O= Optional No amount required as of March, 2009.

  26. Record Type A – Add Alias x O R R WEST 29 2011 R R O 5577777777 R M23SSF22 04-13-2006 R O R Gartain Parshow D O O Harriet Hardworker 44 W. Made Up Street O O O Californiaville CA 00018 R= Required O= Optional

  27. Record Type B – Address Change O R R WEST 29 2011 R x R O 5577777777 R M23SSF22 04-13-2006 O O O Gartain Parshow D O R Harriet Hardworker 44 W. Made Up Street R R R Californiaville CA 00018 R= Required O= Optional

  28. Electronic Submissions Basics – How? • Label all CDs and floppies • Legibly • County name • Record count • Include Temp 1722 A

  29. Temp 1722A Basics – How? • Must accompany all submissions • Blank forms: http://www.dss.cahwnet.gov/cdssweb/entres/forms/English/TEMP1722A.pdf

  30. How to Fill Out the Temp 1722A Basics – How? = Required

  31. How to Fill Out the Temp 1722A Include the number of DPS 249 forms attached to Temp 1722A. We are required to be able to account for each sheet of paper. DOCUMENT = SHEET OF PAPER = Required

  32. How to Fill Out the Temp 1722A = Required

  33. Tumbleweed • Secure server • Used to transport information between State & Counties • Generic e-mail addresses for notifications • Internet connection • Open files in Tumbleweed & ‘save as’ in securefolder locally • Delete files from Tumbleweed after retrieved • 60-DAY retention period

  34. Tumbleweed • https://sft.ca.gov • County logon ID: cdss-##wis • cdss-01wis or cdss-58wis • Set toggle button at ‘SET BINARY’ • Contact Suzanna Ledesma for default password or password reset at (916) 651-3981 or fraudsystemaccess@dss.ca.gov

  35. Tumbleweed • Open text file and save as Excel • Importing saved text file into Excel • Data – Import – Choose file – Select options – Finish! • Import instruction sheet available

  36. WIS Reports • topnad TOP No Address report, formerly WIS 325R2 • Debtors for whom FNS cannot provide address • Cannot be submitted to TOP for offset • topnmt TOP Unmatch Name report, formerly WIS 325R1 • Name & SSN do not match • Cannot be submitted to TOP for offset • Submit Add Alias record

  37. MEDS-WIS Files • To be sent to server on quarterly basis • Due process – persons receiving FS/cash aid cannot be offset • If receiving FS/CalWORKs, begin benefit reductions/collections • County responsible for removing individual from WIS is the county that put them in WIS • For more information , see ACL 03-22 May 2003 at http://www.dss.cahwnet.gov/lettersnotices/entres/getinfo/acl03/pdf/03-22.pdf

  38. WIS Reports • MEDS-WIS Match file or ‘match’ • Debtors your county has in WIS and in MEDS • Same program? • If so, must remove from tax intercept and begin recoupment • If not, follow all other applicable laws, regs & guidelines • MEDS-WIS Unmatched file or ‘unmt2’ • Debtors in WIS in one county & in MEDS in another county • Same program? • If so, contact other county • If not, follow all other applicable laws, regs & guidelines

  39. County Error Files • Common Causes: • Different delinquency date • Invalid $ amount as compared to $ amount in record • RT submission targets different debt under DD • CalFresh or CalWORKs • AE/IHE/IPV • FTB/TOP • Data already exists (RT-A,B) • One RT submission can generate multiple errors • The Just Plain Obvious Error Messages  • e.g. “NO AMOUNT SUBMITTED FOR REDUCTION” ‘ctyerr’ files sent to Tumbleweed

  40. WIS Reports • ctyclr County Clear Edit report, formerly WIS110R1 • County modifications updated to WIS • Review for verification • ctyerr County Edit Error report, formerly WIS105R1 • County modifications that WIS rejected • Review and resubmit if necessary

  41. WIS Reports • ftberr & toperr • FTB/TOP Intercept Error report, formerly WIS506R1/WIS606R1 • WIS processes as over collection • Offsets that could not post to a specific debt • Review for over collection at county level and adjust WIS as needed • Included in total on remittance advice

  42. WIS Reports • ftbint & topint • FTB/TOP Intercept report, formerly WIS507R1/WIS607R1 • Offsets 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

  43. WIS Reports • ftbpre & toppre • FTB/TOP Pre-Offset Notice Roster • Formerly WIS210R1/WIS360R1 • Debtors who have been mailed a 30- or 60-day pre-offset warning notice • For your records • MPP 20-406

  44. WIS Reports Reversals • toprev • TOP Intercept Reversal report, formerly WIS609R1 • Reversals of previous offsets • 5 or 6 years previous • TOP restores amount reversed to balance in system • Review all reversals • ‘TOP Trace No.’ in ‘Display Transaction’ screen

  45. 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.

  46. WIS Reports Reversals • Reversals are here to stay!  • IRS reverses offsets at their own discretion • County & state agencies have no control • Debtors may submit Form 8379 Injured Spouse Allocation • IRS never reveals reason for reversal

  47. WIS Reports Reversals

  48. WIS Reports Reversals Initial report ‘lending’ county

  49. WIS Reports Reversals Initial report ‘borrowing’ county

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