Texas Attorney General Ken Paxton has taken a stand on behalf of the Lone Star State's child support system, calling upon Texas Senators Ted Cruz and John Cornyn to swing into action. As reported by the Texas Attorney General's Office, Paxton's plea is tied to a looming IRS policy shift that threatens the delicate gears of state child support mechanisms—a policy that, until rectified, could pinch the purse in more ways than one for those reliant on this support.
In seeking bipartisan support, Paxton is targeting the "Strengthening State and Tribal Child Support Act," already through the House and now up for Senate consideration. The IRS, under their Office of Safeguards, rolled out new regulations earlier this year sending shock waves through Title IV-D child support agencies. Paxton, taking the helm, filed a lawsuit against the IRS that delayed the policy's onset until October. Originally, a punch was thrown by the IRS that could cost state programs up to an additional $1 billion in expenses—and that's money not appearing out of thin air.
The standoff with the I.R.S. comes over federal tax information access—a vital component for states to effectively manage child support collections. The IRS had blinked, granting a time extension and accepting mitigation plans from states to avert an enforcement crackdown. However, Paxton fears this is merely a Band-Aid on a potentially gaping wound. As Paxton boldly highlighted in his letter, "the IRS has demonstrated time and again that Congress must take action to clarify in statute that IV-D programs are authorized to redisclose FTI—with rigorous safeguards—to contractors for the purpose of operating the program." A long-term fix, in his eyes, is the only way to stop the threat to families needing this crucial support from re-emerging, according to the Texas Attorney General's Office.
