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Minnesota Financial Institution Data Match


How will the levy fees be paid to the financial institutions?

What method will be used to make these payments?

What information will be supplied with the levy payment?

What about questions that have not been answered here?

For multi-state financial institutions, how should levies received from other states be handled?

If a financial institution has any overdraft charges or for example, a car loan outstanding with the delinquent obligor whose account is matched and the levy is served on their account, can the bank offset the loan or overdraft charges that are owed to the bank before sending the levied funds to CSED?

Related to the previous question, what if a delinquent obligor has a CD that has funds held as collateral for a loan through the financial institution, is the CD subject to levy also?

What if a bank has a perfected security interest on a CD, is that exempt from a levy?

What types of accounts are subject to the data match program?

What financial institutions must participate in the data match program?

What is the methodology of performing the data match?

How does Method One, the All Account Method, work?

How does Method Two, the Matched Accounts Method, work?

How often must the data match be conducted?

What data is returned to the child support program for use in collecting delinquent support order obligations?

Can a financial institution be held liable for the release of account information relating to the Minnesota Financial Institution Data Match program and the levies that may result?

Will the Minnesota financial institutions receive a fee for conducting the data match?

Are IRA accounts eligible for levy under the financial institution data match program?

As a follow up to that, who is responsible for the tax liabilities?

As another follow up, how does the financial institution handle the penalties?

Should safe deposit box account information be included in the data match file?

If a financial institution receives a notice of levy on Friday, they freeze the funds that are available in the account on that day. If the account holder deposits additional funds on Monday, are those funds also to be frozen?

Under other levy actions, the financial institution receives a notice of levy with a disclosure form that they then forward on to the account holder after they have frozen the account. With the FIDM levy actions they are not receiving this form, is that correct?

How does the financial institution know if any funds are determined exempt?


How will the levy fees be paid to the financial institutions?

The Minnesota Department of Human Services, Child Support Enforcement Division will pay the financial institutions $15 for every FIDM levy request. The $15 fee should not be deducted from the client account.

What method will be used to make these payments?

The State will issue one check to each financial institution regardless of how many levy requests were made to that institution in the previous month. For example, if the Minnesota child support offices sent an institution five FIDM levy requests in a calendar month, the institution will receive a check for $75 from the State of Minnesota to pay fees associated with those levy request the following calendar month.

What information will be supplied with the levy payment?

Payments will have a memo on the stub "FIDM LEVY FEES MONTH YEAR" Further itemization is not possible because of privacy restrictions.

What about questions that have not been answered here?

Please contact the Minnesota Department of Human Services, Child Support Enforcement Division's Partners' Line at 651-215-1717 in the Twin Cities metro area or 800-657-3890 in greater Minnesota.

For multi-state financial institutions, how should levies received from other states be handled?

Multi-state financial institutions can set their own policy for handling levies received from other states. Minnesota's levy Statute 552 does not require financial institutions to accept direct levies from other states; however, the statute also does not preclude a multi-state financial institution from honoring levies if the financial institution so chooses.

Minnesota's Child Support Enforcement Division recommends that multi-state financial institutions check with their institution's legal counsel to establish a policy on whether your financial institution will accept direct levies from other states or not. If your financial institution establishes a policy where direct levies are not accepted, the financial institution will need to notify the sending state that your institution cannot accept direct levies. Your financial institution will also need to notify the federal Office of Child Support Enforcement of this policy and you will have to provide separate levy addresses to the federal Office of Child Support Enforcement for where levies should be sent for all your branches or banks.


If a financial institution has any overdraft charges or for example, a car loan outstanding with the delinquent obligor whose account is matched and the levy is served on their account, can the bank offset the loan or overdraft charges that are owed to the bank before sending the levied funds to CSED?

A financial institution can offset the loan or overdraft charges, if the account is security for such charges. For example, if an individual has a savings account that is security for a loan, only the funds in excess of that security should be seized.

However, if an individual has two accounts, one being a checking account that has an overdrawn charge and one being a savings account, the financial institution cannot use funds from one account to pay the other account unless that other account has previously been identified as security for the overdrawn account.

And if an individual has a loan which is delinquent AND another account, such as a savings account, the financial institution cannot hold back funds to pay the loan unless the account was previously identified as security for that account or the financial institution has already taken the appropriate action to satisfy the delinquent loan with those funds.


Related to the previous question, what if a delinquent obligor has a CD that has funds held as collateral for a loan through the financial institution, is the CD subject to levy also?

The amounts in excess of the security are subject to the levy.


What if a bank has a perfected security interest on a CD, is that exempt from a levy?

The same exemptions that apply to other levy actions also apply to these levy actions.


What types of accounts are subject to the data match program?

  • Demand deposit accounts
  • Checking accounts or negotiable withdrawal order accounts
  • Savings accounts
  • Time deposit accounts
  • Money-market mutual fund accounts

What financial institutions must participate in the data match program?

  • Bank and savings and loans
  • Federal and State credit unions
  • Money market mutual funds
  • Benefit associations, insurance companies, safe deposit companies, and similar institutions

What is the methodology of performing the data match?

There are two reporting methods for financial institutions: Method One (the all accounts method) and Method Two (the matched accounts method)


How does Method One, the All Account Method, work?

  • Financial institutions submit a file identifying all open accounts to the State child support program.
  • The child support program conducts an internal match against delinquent obligors.
  • The child support program may issue liens or levies to attach and seize the asset(s) of the delinquent obligor.

How does Method Two, the Matched Accounts Method, work?

  • The State child support program submits an inquiry file, containing delinquent obligors, to the financial institution.
  • The financial institution conducts an internal match against its open accounts.
  • The financial institution sends a file to the child support program that reports information on all accounts maintained by individuals on the inquiry file.
  • The match report must be returned to the State within 30-45 days of receipt of the inquiry file.
  • The child support program may issue liens or levies to attach and seize the asset(s) of the delinquent obligor

How often must the data match be conducted?

It must be performed quarterly.


What data is returned to the child support program for use in collecting delinquent support order obligations?

Financial institutions are required to provide the name, record address, Social Security number or other taxpayer identification number, and other identifying information for each match.  Account balances are not required. The inclusion of this information will, however, negate the possibility of the Child Support Enforcement District from issuing liens and/or levies against accounts with small balances.


Can a financial institution be held liable for the release of account information relating to the Minnesota Financial Institution Data Match program and the levies that may result?

No, Section 466(a)(17)(C) 42 U.S.C. 666(a)(17)(C) of the Social Security Act and Minnesota State Statute 13B.06 established that a financial institution shall not be liable under federal or state law to any person for any disclosure of information to the State IV-D agency under section 466(a)(17)(A)(i) of the Act.

Similarly, financial institutions shall not be liable under any federal or State law for encumbering or surrendering any assets they hold in response to a notice of lien or levy issued by the IV-D agency.

Financial institutions will not be held liable for any other action taken in good faith to comply with the requirements of FIDM.


Will the Minnesota financial institutions receive a fee for conducting the data match?

In accordance with Section 466(a)(17)(b) of the Social Security Act and Minnesota statutes 2001, section 13B.06, subdivision 7, a financial institution may charge and collect a fee from the public authority for providing account information to the public authority. The Department of Human Services may pay a financial institution up to $150.00 each quarter if the Department and the financial institution have entered into a signed agreement that complies with federal law.

Payment of the fee is limited by the amount of the appropriation for this purpose. If the appropriation is insufficient, or if fund availability in the fourth quarter would allow payments for actual costs in excess of $150.00 per quarter, the Department will prorate the available funds among the financial institutions that have submitted a claim for the fee.


Are IRA accounts eligible for levy under the financial institution data match program?

Yes, All 401K, 403B, KEOGH, IRA's etc. are eligible for levy as long as the person/employee (privately, publicly or self-employed) is the one who controls the account, i.e. can decide to take money out of the account.


As a follow up to that, who is responsible for the tax liabilities?

The account holder is responsible for all tax liabilities resulting from the early withdrawal of funds due to a financial institution data match levy.


As another follow up, how does the financial institution handle the penalties?

The financial institution should withhold the penalties prior to releasing the funds to the Child Support Payment Center because the amount after penalties paid by non-custodial parent is the amount that the non-custodial parent really owns--the federal government takes the rest to penalize the early withdrawal.


Should safe deposit box account information be included in the data match file?

No, this information should not be included. The contents of safe deposit boxes are not subject to levy.


If a financial institution receives a notice of levy on Friday, they freeze the funds that are available in the account on that day. If the account holder deposits additional funds on Monday, are those funds also to be frozen?

No, only the funds available on the date the levy request is received are eligible for levy - up to the amount in the levy request.


Under other levy actions, the financial institution receives a notice of levy with a disclosure form that they then forward on to the account holder after they have frozen the account. With the FIDM levy actions they are not receiving this form, is that correct?

Minnesota Stat. 552.06 requires that we send the notice of levy to the account holder 3 days after we send the notice to the financial institution - our notice must include the exemption claim notice.


How does the financial institution know if any funds are determined exempt?

Upon determination of exempt funds or upon filing of a request for hearing, we will send a notice to the FI of the hearing and of the results of that hearing, including any accounts or amounts that are exempt.




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