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FTI and state systems

===== Message sent from Amber Ahola, NATCSD President on February 12, 2016 =====

Good afternoon everyone. An issue has come up regarding the use of state systems for FTI and I received a request to find out whether Programs have received a notice from a state office of child support or a regional office of an IRS determination in regards to FTI and Tribal Child Support System using a state system?

Thanks!
Amber Ahola
Program Manager/Attorney
Leech Lake Child Support Office

===== Message sent from Amber Ahola, NATCSD President on February 23, 2016 =====

On February 12, I sent out an email asking if anyone had received notices from the IRS or their regional offices in regards to FTI and use of state systems.  Apparently, some tribes have been or may be looking at being cut off from access to their respective state systems because of a recent IRS determination.  I have not received nor seen one of these notices.  This issue has been added to the agenda for our meeting in Santa Fe.

So far, these the responses I received:

* Sandy Cloer, Cherokee NC – cut from NC system, has inquiry only

* Bill Paine – In WA. The state’s IV-D agency, DCS, was allowing the Colville Tribe to use its child support case management software, “SEMS”, as the tribe’s case management software. SEMS did not have any protections programmed into it that would prevent the tribe from being able to view the FTI for the state’s child support cases.  The state and the tribe were issued findings by the IRS. The Colville Tribe is now in the process of migrating to MTS as its future case management software.  The other tribes in WA have only view only access to SEMS and we are screened from being able to view FTI, so there was no audit finding by the IRS relating to the other WA tribes.

* Christelle Freeman, Shoshone Bannock, Idaho – Nothing directly from the IRS, but Idaho has informed them that they will not process FTI

* Rosemund Hoffman, Menominee, Wisconsin – the IRS Office of Safeguards has raised an issue following an on-site safeguarding review visit.  IRS is requesting that Tribes discontinue use and access of the Wisconsin KIDS systems because the IRC 6103 does not allow Tribes access toFPLS and FTI.  The OCSE has several policy clarification documents on their site indicating that Tribes do have access to FPLS through an Agreement with States.  Seems to be an issue with two conflicting federal laws.

* Carmen Thomas, Eastern Shoshone, Wyoming – has not heard anything

* Kent Walden, Modoc,  Kara Whitworth, Cherokee – received notices in Oklahoma

* Amber Ahola, Leech Lake, Minnesota – has not heard anything (we have view access only to state system with no access to FTI)

One Response

  1. I was just cautioned this month that tribes that already have tax offset in place with their state partners have been allowed to continue Federal Tax Offset although Regional Offices have been advised until additional guidance from IRS is received they are not approving new tribal/state partnership regarding Federal Tax Offset. We do not have an agreement with the State and was waiting to get some legal assistance for updated MOU from either our Tribal Attorney or upcoming additional attorney contract. I should of made my way through it on my own instead of continuously waiting.

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