A Non IV-D bad debt occurs when a Non IV-D receipt is adjusted. Adjustments happen under the following conditions:
- When receipt(s) apply to the incorrect non-custodial parent (NCP) (IV-D or Non IV-D case), send a Finance Action Request (FAR) asking for the receipt(s) to be adjusted to the correct NCP. When the receipt adjustments are completed, the Center for Finance and Budget (CFB) will automatically create an overpayment.
For example, when a receipt applied to John Smith’s case, but was for Sam Jackson’s case, the receipt should be moved to the correct case. This would only apply if two separate NCPs were affected.
- If it is discovered that the custodial person (CP) is on Temporary Assistance for Needy Families (TANF), send an FAR asking for the receipt(s) to be adjusted. When the receipt adjustments are complete, CFB will automatically create an overpayment.
Note: A Non IV-D bad debt will not be created if:
- It is determined that the Non IV-D time period was overpaid once the case converts to a IV-D case (any Non IV-D issues are the responsibility of the NCP and CP to resolve).
- One of the parties asserts that the case is overpaid.