Below is a list of administrative remedies available to OCS, starting with the least severe. Some are automatic, while some are optional based on the facts in the case. Some may be used only after the support past-due is 25% or more of the annual obligation. This usually means that it is more than three months overdue. Other remedies may be used as soon as a payment is one month past due. All remedies may be used even if the non-custodial parent is making payments toward the past-due amount.

Before we can initiate an administrative remedy, we must notify the non-custodial parent of the past due amount, the remedies we may take to collect it, and the right to appeal. Once the non-custodial parent is notified and given an opportunity to disagree with the amount of arrears owed, administrative remedies may take place at any time.

Wage Withholding:

If the support order does not include a requirement for wage withholding, we may notify an employer to start withholding the amount of support from the non-custodial parent’s wages. When payments are one month overdue.

Increase Wage Withholding for Arrears:

We may notify the employer to increase wage withholding (up to 25% of current support) to pay past-due support. When payments are one month overdue.

Lottery Offset:

We may collect a non-custodial parent’s lottery winnings of more than $500. Lottery offsets are applied to current support first and then to any arrears. If there is a debt owed to the state as well as to the custodial parent, the offset is first applied to the custodial parent’s arrears. When support is at least $500 in arrears.

Liens:

We may place a lien on property owned by the non-custodial parent, including his or her home. When payments are more than three months overdue or there is a court judgment against the non-custodial parent for arrears equal to at least one month of annual support.

Trustee Process:

We may seek to attach any assets owned by the non-custodial parent and held by another person, institution, or entity (e.g. bank or retirement account). When payments are more than three months overdue.

License Non-Renewal:

We may ask a licensing authority to not renew a professional or recreational license. When payments are at least one month overdue and the non-custodial parent is not complying with a repayment plan.

State Tax Refund Offset:

We may intercept a non-custodial parent’s state income tax refund. It must be applied to current support first; then, it can be used to pay back any arrears. When a non-custodial parent’s tax refund is from a joint return, the Vermont Tax Department will determine the amount due to the current spouse from the state refund and instruct us to issue a check for that amount. The current spouse has to request the refund through the Tax Department. When arrears total $50 or more.

Federal Tax Refund Offset:

We may intercept a non-custodial parent’s federal income tax refund. Federal law establishes the amount of arrears that can be offset as well as how we must apply any tax refund intercepted.

• Until October 1, 2009, federal tax refunds must be applied to any public assistance or Medicaid arrears owed to the state before any funds can be applied to any arrears owed to the custodial parent.
   
• Starting October 1, 2009, federal tax refunds must be applied to current support first; then, it can be used to pay back any arrears.

When a non-custodial parent’s tax refund is from a joint return, the IRS will determine how much of the federal refund should go to the non-custodial parent’s current spouse and issue a check to that spouse. It can take up to six months for the IRS to make this determination. When the custodial parent receives public assistance or Medicaid, at least $150 in past-due support is owed, support is more than one month overdue, and support has been assigned to the state. Or the custodial parent does not receive public assistance or Medicaid and at least $500 in past-due support is owed.

Other Treasury Offsets:

We may intercept any funds due the non-custodial parent from any federal source (e.g., business loans, student loans, and federal contracts). Federal law establishes the amount of arrears that can be offset as well as how we must apply them. When the custodial parent receives public assistance or Medicaid, support is more than one month overdue, at least $150 in past-due support is owed, and support has been assigned to the state. Or the custodial parent does not receive public assistance or Medicaid and at least $500 in past-due support is owed.

Passport Denial:

We may ask the federal government to not renew or provide a passport. Once the passport is denied, the arrears must be paid in full before a passport is allowed in most situations. When payments are at least $2,500 in arrears.
 

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