Texas Attorney General Ken Paxton has brought to a halt his legal battle against the Biden Administration's Internal Revenue Service after the IRS reversed course on a controversial policy enforcement that could have impacted the child support system in Texas. The lawsuit, initiated by Paxton in May 2023, aimed to stop an IRS enforcement announcement that planned to restrict child support enforcement agencies from utilizing contractor support services—a service they've employed for over ten years.
As reported by the Texas Attorney General's office, this sudden IRS policy shift would have ostensibly barred contractors from accessing essential data for program administration. Such a change was poised to cause significant disruptions in operations for the Texas child support system that provides crucial assistance to families and their children. The confrontation with a federal agency delineated a standoff between state authority and a perceived overreach by a federal entity.
In response to the lawsuit, the Texas Attorney General's Office presented a plan to the IRS that demonstrated ongoing technological improvements within its child support system. The IRS subsequently issued a letter confirming that it would not take enforcement action against Texas considering these upgrades. Following the IRS's assurance, Paxton's office filed a notice of voluntary dismissal but maintained the right to resume litigation should similar IRS policy changes threaten the Texas child support system in the future.
"Because we intervened early, Texas’s child support program will not be derailed by the Biden Administration’s unlawful agency action," Paxton stated. With a note of vigilance, he added, "We reached a positive outcome, but I will not hesitate to resume this litigation if IRS policy changes put Texas children at risk once again," as stated by the Texas Attorney General's office.
