County Wants to Tap Tax Refunds for Unpaid Fines

Orange County Probation Officer Michael Schumacher wants the federal government to help make sure that delinquent court fines and money owed to crime victims are paid before tax refunds are mailed.

The only federal tax intercept now allowed is for unpaid child-support payments.

“It’s an idea whose time has come,” Schumacher said. “We did a telephone survey of just 28 counties and found out there was in excess of $20 million [in delinquent fines and judgments] that could be reclaimed for the citizens of California.”

The State Franchise Tax Board has been intercepting money from state tax refunds since 1993 from individuals who owe crime victims. Orange County collects about $200,000 a year that way, Schumacher said.

If the same intercept occurred at the federal level, the county would collect about $1.9 million a year, he said.

Counties now send lists of those with delinquent payments to the state tax system, which sends out notices that tax refunds will be intercepted unless the payments are made. Schumacher said the mailings produce “a flood” of payments.

One proposal for congressional action calls for refunds to be held back until local payments are made, with the federal government getting the interest.

Kevin McCarthy, district director for Rep. Bill Thomas (R-Bakersfield), said his boss, the state’s ranking Republican and a member of the House Ways and Means Committee, recently met with Schumacher for a brainstorming session.

Supervisor Jim Silva also pitched the plan to the state’s congressional delegation in Washington. It is supported by the County Supervisors Assn. of California and the National Assn. of Counties.