A bill for an act requiring the filing of a tax return when child support obligations are delinquent, and providing for penalties.
Impact
The proposed legislation aims to enhance enforcement of child support payments by leveraging tax filing as a compliance measure. It directs the state’s Department of Human Services (DHS) to notify the Department of Revenue (DOR) when an obligor’s delinquent payments are referred to a collection agency. By requiring tax returns whenever there is a delinquent child support obligation, the bill is anticipated to increase tax compliance among obligors, thereby ensuring better collection of owed support funds for children.
Summary
House File 2095, introduced by Representative Fisher, mandates that individuals who have delinquent child support obligations must file a tax return. This requirement applies regardless of whether the obligor's income falls below the tax filing thresholds established in Iowa law. The bill specifies that both residents and nonresidents who are obligors and have unpaid support arrears referred to a collection agency must file a return, thus expanding the filing responsibilities significantly compared to current tax laws.
Contention
Concerns have been raised regarding the requirement's impact on obligors, particularly those with low or variable incomes. Opponents argue that this measure could place additional burdens on individuals who may already be struggling financially, by requiring them to file returns even when they might not otherwise be obligated. Furthermore, the stipulation that nonresidents must now file returns, regardless of their previous threshold, has raised discussions regarding fairness and administrative complexity. Critics worry that these additional requirements may deter compliance and potentially lead to legal repercussions, categorized as serious misdemeanors for violations.
Providing for child support orders for unborn children from the date of conception, including the direct medical and pregnancy-related expenses of the mother as a factor in child support orders and providing for an income tax exemption for unborn and stillborn children, requiring courts to consider the value of retirement accounts in certain circumstances, authorizing payment from certain retirement accounts to pay child support arrearages and eliminating the exemption of pension and retirement moneys from claims to fulfill child support obligations.
In juvenile matters, further providing for definitions, providing for financial obligations imposed on child and further providing for disposition of delinquent child.
A bill for an act requiring individuals obligated to pay child support to provide proof of the source from which delinquent child support is being paid.
A bill for an act relating to orders for child support including requests for information regarding digital financial accounts, and providing penalties.(Formerly HF 2128.)
A bill for an act relating to orders for child support including requests for information regarding digital financial accounts, and providing penalties.(See HF 2625.)