H.F. 2095 Section 1. Section 252B.7, subsection 1, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . e. Cases involving violations of section 3 421.27, subsection 8A. 4 Sec. 2. Section 252B.23, subsection 8, Code 2026, is amended 5 to read as follows: 6 8. a. If an obligor does not pay the amount of the 7 arrearage, does not contest the referral, or if following child 8 support services’ review and any court hearing child support 9 services or the court does not find a mistake of fact, the 10 arrearages shall be referred to a collection entity. Following 11 the review or hearing, if child support services or the court 12 finds a mistake in the amount of the arrearage, the arrearages 13 shall be referred to the collection entity in the appropriate 14 arrearage amount. For arrearages referred to a collection 15 entity, the obligor shall pay a surcharge equal to a percent 16 of the amount of the support arrearage due as of the date of 17 the referral. The surcharge is in addition to the arrearages 18 and any other fees or charges owed, and shall be enforced 19 by the collection entity as provided under section 252B.5 . 20 Upon referral to the collection entity, the surcharge is an 21 automatic judgment against the obligor. 22 b. The director or the director’s designee shall notify the 23 department of revenue of an obligor’s referral to a collection 24 agency, and shall notify the department of revenue if the 25 obligor’s support arrearage is no longer being collected by the 26 collection agency. 27 Sec. 3. Section 331.756, Code 2026, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 25. At the request of the attorney general, 30 prosecute violations of section 421.27, subsection 8A. 31 Sec. 4. Section 421.27, Code 2026, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 8A. Failure to make a return by obligor. In 34 addition to the penalties imposed by this section, an obligor 35 -1- LSB 5193YH (4) 91 jm/jh 1/ 3

H.F. 2095 who willfully fails to make a return in violation of section 1 422.13, subsection 1, paragraph “d” , commits a serious 2 misdemeanor. 3 Sec. 5. Section 422.13, subsection 1, paragraphs b and c, 4 Code 2026, are amended to read as follows: 5 b. (1) The net income of a nonresident which is allocated 6 to Iowa pursuant to section 422.8, subsection 2 , is one 7 thousand dollars or more for the tax year from sources taxable 8 under this subchapter , unless the nonresident’s total net 9 income, as determined under section 422.5, subsection 2 or 3 , 10 does not exceed the appropriate dollar amount listed in section 11 422.5, subsection 2 or 3 , upon which tax is not imposed. The 12 portion of a lump sum distribution that is allocable to Iowa 13 is included in net income for purposes of determining if the 14 nonresident’s net income allocable to Iowa is one thousand 15 dollars or more. 16 (2) This paragraph does not apply to an obligor subject to 17 paragraph “d” , subparagraph (1). 18 c. (1) The total net income, as determined under section 19 422.5, subsection 2 or 3 , of a resident of this state is more 20 than the appropriate dollar amount listed in section 422.5, 21 subsection 2 or 3 , upon which tax is not imposed. 22 (2) This paragraph does not apply to an obligor subject to 23 paragraph “d” , subparagraph (2). 24 Sec. 6. Section 422.13, subsection 1, Code 2026, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . d. (1) The individual is a nonresident with 27 any net income that is allocated to Iowa pursuant to section 28 422.8, subsection 2, from any sources under this subchapter, 29 and who is an obligor that has an unpaid support arrearage at 30 the end of the tax year which has been referred to a collection 31 agency pursuant to section 252B.23, subsection 8. 32 (2) The individual is a resident who is an obligor that has 33 an unpaid support arrearage at the end of the tax year which 34 has been referred to a collection agency pursuant to section 35 -2- LSB 5193YH (4) 91 jm/jh 2/ 3

H.F. 2095 252B.23, subsection 8. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill requires the filing of a return when child support 5 obligations are delinquent. 6 The bill requires the director of health and human services 7 (HHS) or the director’s designee to notify the department of 8 revenue (DOR) when a obligor’s child support obligations are 9 delinquent and referred to a collection agency. The bill also 10 requires HHS to notify DOR if the obligor’s delinquent child 11 support is no longer being collected by the collection agency. 12 Upon a delinquent child support obligation referral to a 13 collection agency under the bill, an obligor who is a resident 14 of this state is required to file a tax return regardless of 15 whether the obligor’s income is under the individual income tax 16 filing thresholds for filing a return in Code section 422.5, 17 if the child support remains delinquent at the end of the tax 18 year. For an obligor who is a nonresident with any income that 19 is allocated to this state, the bill requires the nonresident 20 to file a tax return in this state. Currently, a nonresident 21 is not required to file a return in this state if the income 22 allocated to this state is less than $1,000. 23 A resident or nonresident obligor who violates the bill 24 by not filing a tax return commits a serious misdemeanor. A 25 serious misdemeanor is punishable by confinement for no more 26 than one year and a fine of at least $430 but not more than 27 $2,560. 28 The bill specifies the attorney general or a county 29 attorney, at the request of the attorney general, may prosecute 30 violations of the bill. 31 -3- LSB 5193YH (4) 91 jm/jh 3/ 3