Missouri Code of State Regulations
Title 12 - DEPARTMENT OF REVENUE
Division 10 - Director of Revenue
Chapter 2 - Income Tax
Section 12 CSR 10-2.250 - Reciprocal Agreements with Other States for Tax Refund Offsets
Universal Citation: 12 MO Code of State Regs 10-2.250
Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This rule allows the department to enter into reciprocal agreements to offset income tax refunds for state debts and establishes the requirements for such agreements.
(1) In general, the department may enter into reciprocal agreements with other states to set off any income tax refund due any individual taxpayer of Missouri for debts of any other state that agrees to do the same for Missouri.
(2) Definition of Terms.
(A) Certified debt-A
debt, as that term is defined in section
143.782(2),
RSMo, certified by one (1) state to another
state to be eligible for a refund offset under the laws of the state referring
the debt.
(B) Debtor-See section
143.782(3),
RSMo.
(C) Reciprocal agreement-An
agreement between Missouri and another state for each state to offset tax
refunds due to a taxpayer of the state against debts owed by the taxpayer to
the other state.
(D) Refund-See
section
143.782(5),
RSMo.
(3) Basic Application.
(A) All reciprocal agreements
will provide-
1. Each state will offset
individual income tax refunds due taxpayers of the state for certified debts of
the other state;
2. The state
referring a debt (referring state) will certify that the debt is eligible for
offset under the laws of the referring state;
3. The offsetting state will give notice of
the offset to the taxpayer as required by the law of the offsetting
state;
4. Each state will bear its
own costs and neither state will charge the other state;
5. If a taxpayer is entitled to a return of
any portion of a tax refund that has been offset, the referring state will
return the amount due to the taxpayer;
6. Debts owed to the offsetting state will be
offset before debts owed to the referring state;
7. Each state will comply with all applicable
state and federal confidentiality laws, regulations, and policies, including
section
32.057,
RSMo;
8. Either party may
immediately terminate the agreement if the other party breaches the
confidentiality provisions of the agreement;
9. The method of exchange of information and
the method of offsetting the tax refund;
10. Neither state will certify a debt of less
than twenty-five dollars ($25) for a tax refund offset; and
11. The offsetting state will provide notice
to a non-obligated spouse of the non-obligated spouse's right to challenge the
offset when a tax refund offsets against a joint or combined return. The notice
will comply with the offsetting state's requirements for due process.
(B) A reciprocal agreement may
contain any other terms that do not conflict with any required terms.
*Original authority: 143.784, RSMo 1982, amended 1984, 1993, 1994.
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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