WAG 23-02-02-a: Intentional Program Violation (IPV)

PM 23-02-02-a.

(Below is an example of when to refer an SIPV that is less than 3 consecutive months:

Example: The Family Community Resource Center received a crossmatch because Mr. S received food stamps in Illinois and another state at the same time. The Family Community Resource Center determined that Mr. S was actually living in the other state and was returning to Illinois each month to pick up his food stamps. Even though the overpayment was only 2 months, it was referred as an SIPV because the Department discovered the error and took action to prevent the overpayment from continuing.

To refer an overpayment as a suspected IPV, the FCRC must have documentation the member purposely withheld or misstated information.

NOTE: Documentation may not prove an error. For example, the name of a person on a lease is not proof of residence. The person may be the guarantor of payment, rather than a resident.

  1. (FCRC) Send documentation about a suspected IPV to the Food Stamp Fraud Unit, 404 North 5th Street, Springfield, IL 62702.

    Required documentation includes FS application and FS REDE forms signed by the client for the overpayment period.

    Example 1: A new application is approved 02/95. The FS payee reports on the new application that he receives earned income. There is no other reported income for the unit. The unit is reapproved for 08/95. In 09/95 the FCRC is notified on Priority Action List (PAL) that the spouse has been working since 07/95. This income was not reported at the FS REDE. Send the FS approval and REDE forms to BQC.

    Example 2: At the 05/95 FS REDE, the FS unit members are reported as one adult and 2 minor children. An anonymous call in 08/95 reports that one of the children has not lived there since 06/95. Verification of Living With (Form 2540) is sent to the landlord. The landlord verifies that the unit has been one adult and one child since 06/95. The change was not reported by the FS payee. Send the FS REDE form to BQC.

    Other documentation may include, as appropriate:

    For Earned Income

    • Redetermination Report (Form 643), and Redetermination of Eligibility (Form 2027), completed before and during the overpayment period.
    • Revised TextApplication for FS (Form 683), Redetermination Application (Form 4765 and Form 4764), and Employment Sheet (Form 2378CAF), for the payment period.
    • Form 514 documenting contact with the client during the overpayment period. Also note rights and responsibilities given to the client.
    • Wage Verification (Form 266).
    • Priority Action List (PAL).
    • IRS Form W-2.
    • Wage stubs.
    • PF/F3 AWVS clearances.
    • IRS Form 1040 series (tax return).
    • BOI Investigation Report (Form 2518).

      Spouse Living with Client While Receiving Income and/or Joint Assets 

    • Overpayment Referral (Form 2404), including name, SSN, and date of birth of spouse.
    • List of client's address and spouse's addresses immediately before and during the overpayment period. Include the landlord's name, address, and phone number, rent receipts, and lease agreements.
    • Verification of spouse's income and joint assets:
      • Form 266 with home address,
      • pay stubs,
      • IRS W-2,
      • IRS 1040 (tax return),
      • unemployment benefits - AWVS clearances,
      • SSA 1610 and/or BENDEX,
      • Veteran's Benefits (Form 1301),
      • Bank Accounts (Form 46),
      • Title Search (Real Property) (Form 1786),
      • Secretary of State verifications (vehicles), and
      • Life Insurance.
    • Post office verification.
    • Birth certificates for any children born immediately before or during the overpayment period.

      Persons Living Together

    • School Attendance (Form 541).
    • Verification of Living With (Form 2540).
    • Clinic, doctors' statements, including dates, addresses, and phone numbers.
    • Name, address, phone number of landlord immediately before and during the overpayment period.
    • Signed copy of lease agreement with names of person in house.
    • Signed statement of relatives.
    • DCFS documents with names, addresses, and phone numbers.

      Duplicate Interstate Food Stamps 

    • Interstate Duplicate Assistance Worksheet (Form 2372).
    • FS ledgers for Illinois and the other state for the entire overpayment period.
    • FS Certification/Recertification documents signed by the client in both states for the entire overpayment period.
    • Verification from the other state that the client has not been disqualified for the overpayment in that state.
    • Name, address, and phone number of any staff in the other state who provided case information.
    • Verification of where the client lived during the overpayment period.

      NOTE: Do not make a suspected IPV decision. Record the reasons you suspect an IPV and send the documents to the Food Stamp Fraud Unit, 404 North 5th Street, Springfield, IL 62702. If the FCRC cannot document that the client withheld or misstated information on purpose, treat the overpayment as an Inadvertent Household Error. 

  2. (FCRC or Program Support Services) Complete Form 2404 or Change of Overpayment Information (Form 2404C) and Notice of Overpayment (Form 2404X).
    1. Include a brief description of why the overpayment is an SIPV and a description of the supporting documentation.
    2. Send Food Stamp Intentional Program Violation Documentation Transmittal Sheet to the Food Stamp Fraud Unit, 404 North 5th Street, Springfield, IL 62702 with a turnaround Form 2404 and Form 2404X.
  3. (Fraud Unit) Conducts its investigation based on the information provided by the FCRC. When BQC decides there is enough evidence to have a Disqualification Hearing:
    1. Sends the following forms to the person suspected of the SIPV. The notice tells the person to contact the Food Stamp Fraud Unit or the FCRC FRC for an appointment if they wish to examine evidence of the SIPV.
      • Notification of Suspected Intentional Food Stamp Program Violation (Form 2548),
      • Food Stamp Disqualification Rights (Form 2548A),
      • The Charge and Summary of Evidence (Form 2548B), and
      • Waiver of Right to Administrative Disqualification Hearing (Form 2549).
    2. Sends a copy of Form 2548 to FCRC.
    3. Refers the case to the Assistance Hearings Section to schedule a hearing if the person does not respond to the Form 2548 within 10 calendar days.