TEXAS vs. Internal Revenue Service (IRS): Which Agency Will Prevail?

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Attorney General Paxton took legal action against the Internal Revenue Service (IRS) in response to a significant policy change that would severely limit the ability of child support enforcement agencies (CSEAs) across the country to utilize valuable contractor resources in assisting the families they serve. The lawsuit's objective is to overturn this harmful policy.

On February 15, 2023, the IRS informed CSEAs nationwide of a policy alteration that would require the termination of contractor access to crucial data needed for the administration of Title IV-D child support programs, effective from October 1, 2023. Title IV-D programs nationwide heavily rely on contractor services to facilitate the provision of financial, medical, and dental support to more than 13.2 million children.

In Texas alone, during the fiscal year 2022, contractor services played a pivotal role in aiding the state in collecting nearly $4.5 billion for 1.5 million child support cases statewide.
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