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Liablility / Criminal Records - FAQs

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How should the DFCS agency handle a tax levy from the IRS on a Medicaid driver or on any other vendor?
This tax levy should be treated the same as all tax levies. Look at it, send it to the Division’s Legal Services Officer and the original to your Fiscal Operations Officer or Accounting Manager. You will probably be advised to pay the IRS until the levy is paid in full, or until a release from the IRS is received. DO NOT CONFUSE LEVIES FROM THE IRS WITH ATTEMPTS BY COLLECTION AGENCIES TO COLLECT. If you receive something from a collection agency, fax it to the Division’s Legal Services Officer for advice.
How should the DFCS agency handle a tax levy from the IRS on a DAY CARE Center?
Send a copy to your DFCS Legal Services Officer and the original to your Fiscal Operations Officer or Accounting Manager. If the Tax Identification number matches the number on file in Accounting (seeW-9 Form), and the Legal Services Officer concurs, the IRS Tax levy should be honored by paying as instructed.
Does a bankruptcy order relieve an individual from federal taxes, state taxes, and child support payments?
NO, There are certain categories that are paid first in a bankruptcy. Federal taxes, state taxes and child support get first priority.
What should a DFCS agency do when it receives a bankruptcy order?
Contact the Division’s Legal Services Officer and send to your Fiscal Operations Officer or Accounting Manager.
What should the DFCS agency do with a tax bill or tax statement received in the County Department for ad valorem taxes on rented or leased equipment?
Determine if the DFCS agency rental agreement with the vendor states that the agency is to pay the ad valorem taxes. If so, the County Director should authorize and forward the tax bill or tax statement to the Fiscal Operations Officer or Accounting Manager with a copy of the rental agreement as supporting documentation. The taxes should be paid in the appropriate time frame.
What is a W-9 Form?
A W-9 is Request for Taxpayer Identification Number and Certification form. It is a Department of Treasury form in which a vendor certifies to a requestor (DFCS agency in our case) the Taxpayer Identification Number or Social Security Number under which the payee conducts business. Without this form, the payee is subject to backup withholding, which means a percentage of each invoice amount is withheld for the IRS.
What should the agency do if it suspects a day care provider is attempting to circumvent the IRS regulations? This is sometimes indicated by the day care provider changing names or tax identification numbers on the invoices submitted to the agency. Are there any recommendations regarding how to deal with these situations?
Advise the IRS of the other name and tax identification number. It is up to the IRS to handle a matter like this. Tax levy authority cannot be transferred. If a properly completed W9 is not provided by the vendor, payments should not be paid unless the percentage of payment is withheld as directed by the IRS.