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Wisconsin Department of Children and Families Wisconsin Works (W-2) Manual |
13.5.1.1 Intentional Program Violation Process
13.5.1.1.1 Determining the Date of an Intentional Program Violation
13.5.1.1.2 Intentional Program Violation Notification
13.5.1.2 Intentional Program Violation Penalties
13.5.1.2.1 Imposing an Intentional Program Violation Penalty
13.5.1.2.2 Imposing an IPV Penalty for W-2 Groups with More than One Adult
13.5.1.2.3 Additional Intentional Program Violation Enforcement Actions
13.5.1.3 Overpayment Recovery for Intentional Program Violations
13.5.1.4 Dispute Resolution Process
A W-2 IPV means that an individual did any of the following for the purpose of establishing, using, maintaining, increasing, receiving, transferring, or trafficking W-2 payments and services, including a JAL:
Intentionally made a false or misleading statement;
Intentionally misrepresented or withheld facts; or
Intentionally committed any act that constitutes a violation of state or federal law.
In order to impose an IPV penalty for an individual, the IPV must have been committed on or after November 1, 2012.
The receipt of payments or services is not a requirement for imposing an IPV penalty. If an individual commits an IPV during the application process and prior to eligibility determination, the agency can still impose an IPV penalty.
Examples of IPVs may include, but are not limited to:
· Concealing or intentionally not reporting unearned income or assets;
· Concealing or intentionally not reporting employment;
· Intentionally misrepresenting, and/or not reporting any changes to, household composition (including minor children);
· Intentionally hiding or not disclosing non-Wisconsin residency;
· Submitting documentation that has been knowingly forged or tampered with;
· Intentionally submitting false information; or
· Intentionally misrepresenting the reason for a JAL.
Prior to establishing an IPV, the W-2 agency must:
Complete a full fraud referral and investigation; and
An IPV must not be established if the W-2 agency is unable to determine that the individual acted intentionally.
13.5.1.1 Intentional Program Violation Process
If the outcome of a fraud investigation confirms that an individual has committed a fraudulent act, within seven working days, the W-2 agency must:
Determine if an IPV has occurred;
Determine whether an IPV penalty can be applied based on the November 1, 2012, effective date of Wis. Stat. s. 49.151.(2);
Determine the date or date range the IPV occurred; and
Enter the IPV in CWW to notify the individual of the IPV.
The W-2 agency can only impose one IPV penalty period at a time, regardless of if multiple acts of fraud have been committed. For more information on IPV penalties, see 13.5.1.2.
All IPV determinations must be reviewed and approved by a supervisor or a supervisor’s designee to ensure uniform application of IPV policy within each W-2 agency.
13.5.1.1.1 Determining the Date of an Intentional Program Violation
The date of the intentional program violation is the date the individual committed the fraudulent act.
If the fraudulent act is committed prior to November 1, 20 12, the agency must not impose an IPV penalty.
| EXAMPLE 1: On December 17, 2012, Lisa applies for W-2 and reports that her W-2 group only includes her and her son. Lisa is determined eligible for W-2. In February 2013, Lisa reports that Tony is living with her. The FEP then learns that Tony has been living with Lisa since August 24, 2011, and that Tony works full-time making them financially ineligible for W-2. The W-2 agency completes a fraud referral and investigation. The investigation concludes that Lisa intentionally misrepresented her household in order to receive W-2 payments. The W-2 agency must apply an IPV because the fraudulent act occurred after November 1, 2012. The date of the fraudulent act is December 17, 2012. The agency applies an IPV penalty and processes an overpayment for the time Lisa was financially ineligible. |
| EXAMPLE 2: Judy is enrolled in a W-2 T placement in February. On October 1, Judy’s FEP finds out through a third-party data exchange that Judy received $10,000 as an inheritance on June 12. When Judy’s FEP contacts her, Judy states that she spent the money by September 1. Judy would have been over the asset limit for the calendar months of July and August. The W-2 agency completes a fraud referral and investigation. The investigation concludes that Judy intentionally concealed her inheritance in order to remain eligible for W-2 payments. The date of the fraudulent act is June 12. The agency must apply an IPV penalty and process an overpayment for the time Judy was financially ineligible. |
| EXAMPLE 3: Suki was found eligible for a CSJ placement in April. On May 15, Suki receives a $5,000 legal settlement. Suki calls her FEP to report the change on May 16. Suki’s FEP advises her to pay ahead on her rent, electric bill, and other utilities to help stabilize her living situation. At a follow-up appointment in July Suki’s FEP asks if she still has any settlement money remaining. Suki says she still has $2,600 and plans on keeping it. Suki’s FEP advises Suki that her case will close at the end of July since it will be her second month of being over the asset limit. Suki agrees, and Suki’s FEP closes her case on July 31. There is no IPV or overpayment as Suki reported the income timely, and Suki’s FEP closed her case timely. |
13.5.1.1.2 Intentional Program Violation Notification
An individual must be notified in writing by the W-2 agency that they committed an IPV.
The IPV letter is automatically generated and sent from CWW when an IPV is entered, and informs the individual of the following:
The W-2 agency’s determination of the IPV;
The dates and a description of the fraudulent act that resulted in the IPV penalty; and
The seven working days timeframe the individual has to provide any additional information regarding the IPV.
The individual must be allowed seven working days to rectify the IPV with the W-2 agency by submitting additional information related to the IPV during that time.
If additional information is submitted, the W-2 agency must review it and determine if the IPV should be overturned. The W-2 agency must enter a comment in the BRITS referral explaining the additional information received and whether it upheld or overturned the IPV and why.
If the IPV is |
The W-2 agency must |
Overturned |
Delete the IPV and notify the individual that an IPV penalty will not be imposed. |
Upheld |
Impose the IPV penalty by running eligibility and confirming in CWW. Note: For cases that are still open, the W-2 agency must redetermine eligibility for the current month prior to CWW auto-closing the case at the end of the month.
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When an IPV penalty is imposed, the period of ineligibility begins the first day of the month after the seven working day timeframe. CWW will generate a Notice of Eligibility to the ineligible individual.
(See Operations Memo 13-10 for instructions on entering W-2 and JAL IPVs in CWW)
EXAMPLE: On May 28, the W-2 agency receives a fraud investigation report on Mary’s case alleging that she concealed income. The Fraud Coordinator reviews the report on June 6 and determines that the act was intentional. On that day, the W-2 agency enters the IPV in CWW and generates an IPV notification letter (IPVI) to Mary, giving her until June 17 to provide any additional information regarding the IPV. On June 18, the agency imposes the IPV penalty because Mary did not submit new information. This is Mary’s first IPV. Mary will be ineligible for W-2 for six months beginning July 1 and ending December 31. |
13.5.1.2 Intentional Program Violation Penalties
An individual who committed a W-2 or JAL IPV must be denied W-2 and JAL eligibility for the time frame that corresponds to the number of IPV penalties committed. The penalty time frames per IPV are as follows:
IPVs committed |
Length of penalty |
First |
Six months |
Second |
One year |
Third |
Permanently |
Each IPV determination is subject to the dispute resolution process (See Chapter 12). Individuals may only dispute the determination of the IPV, not the duration of the ineligibility period. If an IPV is not reversed under the W-2 dispute resolution process, the penalty duration continues uninterrupted.
13.5.1.2.1 Imposing an Intentional Program Violation Penalty
The following IPVs are program-specific and determined independently of each other:
· An IPV penalty imposed for Wisconsin Shares (child care) applies only to child care.
· An IPV penalty imposed for Emergency Assistance (EA) applies only to EA. For more information on IPVs, see EA Manual Chapter 8.
However, an IPV penalty imposed for either W-2 or JAL applies to both W-2 and JAL eligibility.
| EXAMPLE 1: Leo received a W-2 IPV for intentionally misrepresenting his income so that he would be eligible for W-2 payments. The W-2 agency imposes an IPV penalty, denying Leo W-2 eligibility for six months. Leo applies for a JAL and is denied for the loan because of his ongoing W-2 IPV penalty. |
A W-2 applicant or participant must not be granted good cause for nonparticipation due to lack of child care that is a result of a child care IPV.
An individual may still receive an IPV penalty even if the W-2 case has been closed for a JAL already issued.
| EXAMPLE 2: Cathy applies for W-2 and child care. During the W-2 application process, Cathy states that she and her two children reside in her home. The FEP learns after the appointment that Cathy intentionally misrepresented her household and that her husband also lives with the family. The FEP discusses the situation with the Fraud Coordinator who completes a fraud investigation and determines that Cathy committed a W-2 IPV. The Fraud Coordinator notifies child care of the finding and child care makes a separate IPV determination for that program. The following month, Cathy is not able to pay her rent. She applies for EA and lists herself, her husband, and two children on the EA application. The W-2 IPV does not prevent Cathy from being determined eligible for EA. |
13.5.1.2.2 Imposing an IPV Penalty for W-2 Groups with More than One Adult
When there is more than one adult in the W-2 Group, the W-2 agency must identify which individuals were involved in the fraudulent act that resulted in the IPV determination.
Only the individual(s) determined to have committed the IPV must receive the penalty.
W-2 Groups which include more than one adult may still be eligible for W-2 and JAL services if at least one of the adults in the group does not have an IPV penalty imposed.
In these circumstances, the individual with an IPV penalty is still counted in the W-2 Group for the purpose of financial eligibility. CWW will reflect the ineligible individual as an Included Adult. Included adults are not eligible for a W-2 placement, services, or a JAL.
In the case of a two-parent household when one parent is ineligible and the second parent has been determined not to be involved in the IPV activity, the second parent may apply and be eligible for W-2.
| EXAMPLE: Marta and Jose apply for W-2 for themselves and their two children in January 2024. Marta was previously on W-2 in September 2023 when Jose was out of the house. Marta has an IPV that was imposed three months ago in October 2023. Jose moved into the household in December 2023. The FEP completes the intake and determines the W-2 Group to be eligible. Since Marta is an Included Adult in the W-2 Group and not eligible for placement, Jose is placed in the W-2 placement. |
13.5.1.2.3 Additional Intentional Program Violation Enforcement Actions
After the W-2 agency determines that an IPV has occurred, the agency may decide to take additional enforcement action(s). Additional enforcement action include:
Refer for possible criminal prosecution. The W-2 agency must communicate with its legal counsel to discuss and establish thresholds and criteria regarding when to refer individuals to local law enforcement or the district attorney for consideration of possible criminal prosecution.
Obtain a Disqualification Consent Agreement. If the W-2 agency decides to refer an individual to the District Attorney for prosecution for civil or criminal misrepresentation or fraud, the agency may offer the individual the option to sign a consent agreement with the agency to defer the referral for prosecution. Individuals who choose to sign this waiver still receive an IPV penalty.
See 13.5.3 for more information.
13.5.1.3 Overpayment Recovery for Intentional Program Violations
The W-2 agency must establish all W-2 overpayments claims in BRITS.
Because an individual’s W-2 case will close for an IPV, it is not possible to recoup the associated overpayment by reducing ongoing payments. When entering overpayment claims for an IPV, the W-2 agency must use IV as the Error Type in BRITS.
IPV overpayments will be recovered from the individual through repayment (see 13.6.3.2).
If a balance still exists when the individual reapplies and is found eligible for W-2 after their penalty period is complete, BRITS will recoup the remaining overpayment from ongoing W-2 payments.
Under no circumstances can the W-2 agency recover a JAL repayment from a W-2 payment, including from JAL recipients that have a JAL IPV. When a JAL recipient commits an IPV and receives an IPV penalty, the terms of their JAL repayment agreement are still in effect. (See 17.5.1)
13.5.1.4 Dispute Resolution Process
An individual may appeal an IPV determination by requesting a Fact Finding Review (see Chapter 12). A W-2 IPV determination and the establishment of an IPV-related overpayment are considered two separate actions. The individual must appeal each action separately.
History: Release 25-01; Release 24-13; Release 20-01; Release 18-04; Release 16-01.