Welcome to Tax Intercept Training 2014

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

benefitsNo litigation pending (hearings, bankruptcies,

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

Documenthttp://www.cdss.ca.gov/cdssweb/entres/forms/

English/DPS249.PDFTesting for online version

Must have WIS access

Basics – How?

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



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



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



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



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



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



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



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



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



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

Electronic Submissions

Basics – How?

Must accompany all submissions

Blank forms: http://www.dss.cahwnet.gov/cdssweb/entres/forms/English/TEMP1722A.pdf

Temp 1722A

Basics – How?

How to Fill Out the Temp 1722A

= Required

Basics – How?

Include the number of DPS 249 forms attached to Temp 1722A. We are required to be able to account for each sheet of paper.

= Required

DOCUMENT = SHEET OF PAPER



= Required

Secure serverUsed to transport information between State &

CountiesGeneric e-mail addresses for notificationsInternet connectionOpen files in Tumbleweed & ‘save as’ in secure

folder locallyDelete files from Tumbleweed after retrieved60-DAY retention period

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 [email protected]

Tumbleweed

Open text file and save as ExcelImporting saved text file into Excel

Data – Import – Choose file – Select options – Finish!

Import instruction sheet available

Tumbleweed

topnadTOP No Address report, formerly WIS 325R2Debtors for whom FNS cannot provide addressCannot be submitted to TOP for offset

topnmtTOP Unmatch Name report, formerly WIS 325R1Name & SSN do not match Cannot be submitted to TOP for offsetSubmit Add Alias record

WIS Reports

To be sent to server on quarterly basisDue process – persons receiving FS/cash aid

cannot be offsetIf receiving FS/CalWORKs, begin benefit

reductions/collectionsCounty 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

MEDS-WIS Files

MEDS-WIS Match file or ‘match’Debtors your county has in WIS and in MEDSSame 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 countySame program?

If so, contact other county If not, follow all other applicable laws, regs &

guidelines

WIS Reports

Common Causes:Different delinquency dateInvalid $ amount as compared to $ amount in

recordRT submission targets different debt under DD

CalFresh or CalWORKsAE/IHE/IPVFTB/TOP

Data already exists (RT-A,B)One RT submission can generate multiple errorsThe Just Plain Obvious Error Messages

e.g. “NO AMOUNT SUBMITTED FOR REDUCTION”‘ctyerr’ files sent to Tumbleweed

County Error Files

ctyclrCounty Clear Edit report, formerly WIS110R1County modifications updated to WISReview for verification

ctyerrCounty Edit Error report, formerly WIS105R1County modifications that WIS rejectedReview and resubmit if necessary

WIS Reports

ftberr & toperrFTB/TOP Intercept Error report, formerly

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.


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


Initial report‘lending’ county


Initial report

‘borrowing’ county


Secondary report

‘lending’ county


Secondary report‘borrowing’ county


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.

Debt List Splash Screen

Using WIS

Using WIS

Email us at [email protected]

Using WIS

mailto:[email protected]


Press ‘ENTER’ to continue.READ IN ITS ENTIRETY FIRST TIME LOG ON

Using WIS

HINT: Don’t look at the screen when signing on!

Warning! If you can’t log in, disconnect & reconnect before

trying again!

Using WIS – RACF SignOn Screen

Using WIS – Main Menu

John has active debts in 2 counties. In county screens, the PF2 ‘splash screen’ will show the other county’s code.

Select a debt by placing the cursor on the line and hit the PF4 key to see the transactions listed for that debt.

Using WIS - Recipient Profile Screen

Using WIS - Recipient Profile Detail Screen

Using WIS – Viewing Transactions

Using WIS – List Transaction Screen

Using WIS – Transaction Detail Screen

Using WIS – Establish Amounts

Hit ENTER or F2 key to remove ‘splash screen’

Using WIS – Establish Amounts

Using WIS

Using WIS – Name History Screen

Select a record and hit ‘ENTER’ to view detail screen.

Using WIS – Address History Screen

Using WIS – Address History Detail Screen

Using WIS – Reversals

Using WIS – Transaction Detail Screen TOP offset

Using WIS – Transaction Detail Screen IRS Reversal

Using WIS – List Transaction Screen Information

Using WIS – Transaction Detail Screen TOP Offset

Using WIS – Transaction Detail Screen IRS Reversal

Using WIS – List Transaction Screen FTB Offsets

Using WIS –Transaction Detail Screen FTB Offsets

Using WIS – List Transaction Screen Lottery Offsets

Using WIS

All actions by CDSS require documentationCDSS must maintain original signatures

Gen 1321A, internal to CDSS – don’t worry!WIS & Tumbleweed will differ

Gen 1321 FormAccessing WIS and Tumbleweed

New usersUpdate user information

Name changesTerminate access Contact information

Password resets


• User – Sections 2 & 11• User’s direct supervisor – Section 8• IGNORE Sections 3, 4, 5, 7, 9 & 10• Fax or scan to expedite• PLEASE submit single-side ONLY

We scan & send copies Email us at [email protected]


Remittance Advice Memo

Tumbleweed STS CalendarWIS Cycle Numbers

TOP Cycle Number

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

• Contact Nancy Cronin at [email protected] or (916) 653-5007

Annual Forms


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

NIST SP 800-088 Guidelines for media sanitation

Safeguards - Data Storage

Double-barrier (Pub 1075 Guide 2 page 15)Secured perimeter/locked containerLocked perimeter/secured interiorLocked perimeter/security container

Authorized employees with access after hours

Safeguards - Data Storage

Safeguards

No recognizable wordsMin 8 charactersMix uppercase, lowercase, numbers and

special charactersIf you’re blind, you can create a great

password

eH7i9<l,-eFq

Safeguards - Passwords

FNS reports to USDA, OIG, OMB, et alIntended to reflect actual activityDesigned to reflect changing information

FNS 209 - secrets revealed….

Line 3b, Balance Adjustments (+/-)Adjustments to previous balances due to:

Corrections to Line 4 Voluntary payments to previously

compromised or terminated claimsInter-county collections Reversals adjust # if closed, etc, but not $ ($

on line 18b)


Line 4, New Cases (+)For newly established AE & IHE claims in the

QNOT for IHEs become IPVsNOT for ICTsIPVs….?


Line 5, Transfers (+ & -)Solely for transfers between categories due to

hearing/ court determinationExample: IHE to IPVExample: IHE to AE

Claims onlyNet should be ZERO

Payments on Line 19


Line 6, Refunds (total of 20a & 20b)Line 7, Total (of 3a, 3b, 4, 5 & 6)Line 8, Closed (+, # only)

PIFVoluntary payments on previously

terminated/compromised claims


Line 9, Terminated (+)Claims determined uncollectible due to…

All HH members deceased, no estatePIF after completed public service workUncollectible due to bankruptcy

Should have been submitted to TOPFSP Administrative Notice 04-23, March

26, 2004Less than $25


Line 10, Compromised (+)Discharged by bankruptcy Discharged by a court of law


Line 11a, Collection, (from line 18 a, Total)Line 11b, Collection Adjustments (18b + 18c) Line 12, Total

Number: Lines 8 + 9 Amount: Lines 9 + 10 + 11a + 11b

Line 13, Ending Balance Line 7 – Line 12


Line 14, Cash (+)Cash, money orders, checksFTB offsetsTOP offsets

Remarks in #29NOT for recording cash refunds (Line 20a)


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)


Line 16, Recoupment (+)Allotment reductionNOT for offsetting restored lost benefits NOT for deducting EBT accounts subsequent to

issuance (Line 15)


Line 17, OffsetBalancing over- and under-paymentsCalifornia does not allow (Lopez v. Espy)Leave it blank….


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


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)


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


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


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


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)

65% retained by FNS prior to remittance to CDSS


Line 29, RemarksLine 3b, Balance AdjustmentsLine 5, Transfers (between categories)Line 18b, Cash AdjustmentsLine 19, Transfers (between categories)Line 20a, Cash RefundsLine 20b, Non-cash Refunds


Welcome to Tax Intercept Training 2014

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