Current through Reigster Vol. 28, No. 6, December 1, 2024
4.1 Referral threshold. No single debt may be referred for offset or intercept if the amount is less than $100.00. Revenue and the claimant agency may agree in writing to a different threshold amount.
4.2 Pre-offset notice and hearing requirements
4.2.1 Prior to referring a debt for collection by offset or intercept, the claimant agency must:
4.2.1.1 Make a reasonable attempt to notify the debtor that a debt is past-due and may be referred to Revenue for tax refund offset or lottery winnings intercept and of the opportunity to request an administrative hearing and present evidence that all or part of the debt is not past-due or legally enforceable. For purposes of this provision, the claimant agency has made a reasonable attempt to notify the debtor if the agency uses the current address information contained in the agency's records related to the debt.
4.2.1.2 Consider any evidence presented by the debtor.
4.2.1.3 Determine that the debt is past-due and legally enforceable in the amount referred.
4.2.2 The claimant agency may refer a debt without first complying with the requirements of subsections 4.2.1.1 through 4.2.1.3 if Revenue has established a screening procedure pursuant to which Revenue, after an initial referral, issues the required pre-offset notice, notifies the agency of a match between the debtor and the identity of an individual owed a tax refund, and refers the debt back to the claimant agency for purposes of compliance with the pre-offset hearing requirements of this regulation. The claimant agency, after complying with the requirements of subsections 4.2.1.1 through 4.2.1.3, may then refer the debt or a portion thereof back to Revenue in accordance with this regulation.
4.3 Certification. When a claimant agency refers a debt to Revenue for tax refund offset or lottery prize intercept, the claimant agency will be deemed to have certified to Revenue that:
4.3.1 The debt is past-due and legally enforceable in the amount submitted to Revenue as of the date of the referral.
4.3.2 The claimant agency will ensure that subsequent collections, if any, are properly and timely credited to the debt.
4.3.3 The debt is more than the referral threshold specified in this regulation or such different amount as may be agreed to in writing by Revenue and the claimant agency.
4.4 Noncompliance. Revenue may reject a referral that does not comply with the requirements of this regulation.
4.5 Post-referral obligations. If, after referring a debt to Revenue, a claimant agency determines that an error has been made with respect to the information transmitted to Revenue, or if an agency receives a payment on account of a debt referred for offset or intercept, or if the debt amount is otherwise incorrect, the agency shall promptly notify Revenue and make the appropriate correction of the agency's records. Claimant agencies must satisfy the pre-offset notice and hearing requirements for any correction that increases the amount of the debt.
