Child support office intercepts tax refund checks

By Michael Puente / Staff Writer

Noel and Karen Knight were not planning to go on vacation or buy a new car.

The Lake Station couple just wanted to pay off a few bills with their anticipated $1,600 federal income tax return.

But a glitch with a new computer system in Indiana isn't allowing the couple to get their tax refund. The Indiana State Enforcement Tracking System indicates that Noel Knight owes child support money to his 18-year-old son.

The couple says the computer software - used to track so-called deadbeat parents - is wrong.

"I'm really ticked off about it. I've done my job," the 47-year-old truck driver said.

"Noel makes his child support a priority. That comes before any other bill," Karen Knight added.

When the Knights contacted the Lake County prosecutor's office Child Support Division, they learned other couples are experiencing the same problem.

Despite not being behind on child support payments, thousands of noncustodial parents in Lake County are having their tax returns blocked or garnisheed because of problems with ISETS.

The county prosecutor's office has sent letters to about 13,000 noncustodial parents, advising them that their tax refunds might be intercepted by the ISETS computer system.

However, Lake County Prosecutor Bernard Carter said up to 7,000 of those noncustodial parents are behind on support payments and won't see their tax refunds.

The ISETS glitch is not limited to Lake County, as about 20 other counties also are experiencing ISETS problems, including neighboring Porter County.

"We're having a major, major problem with the state of Indiana and federal government," said Bruce Dumas, Porter County Child Support Division prosecutor. "There are justifiably angry people."

Valparaiso resident Joe Shay says the holding of his $3,950 refund might force him to lose his home.

"I'm losing my house over this. And what about my wife and two kids, like are they being fed right?" argued Shay, who says he is a year ahead on his child support payments to children from a previous marriage.

Joe Mamlin, child support director for the state Division of Family and Children, said systems in place at the county level have little to do with the tax refund problems.

Instead, Mamlin said his division's plan to integrate child support cases with IRS tax records didn't work as well as hoped.

In Lake County's case, problems started when child support records were transferred to the new statewide system last June.

Just a few months into the new system, many fathers who were not late in paying child support received letters stating they were behind, some into the thousands of dollars.

Officials had hoped the problem would be resolved before tax-filing season, but that hasn't happened.

Mamlin said because the ISETS system is new and Lake County is in the process of updating all child support records, any discrepancies in the amounts owed will be worked out over time.

"They haven't been on the system long enough to correct them," Mamlin said.

Despite the problems, Mamlin is convinced ISETS is worth having.

"A lot of families with children benefit from the fact that we intercept tax refunds," he said. "If not for the positive benefits, we would not go through all of this."

Someone who receives an "off-set" letter from the IRS or a tax preparation service needs to fill out paperwork at the local prosecutor's office to get the owed tax refund released.

Most checks will arrive within 10 to 14 days.