Current through Register Vol. 35, No. 6, March 26, 2024
A. Notice
to debtor: Within ten days after the department receives notice from TRD of a
match of an offset request the department shall send a notice to the affected
debtor substantially in the form of Exhibit A in 5.7.33.14 NMAC. The notice
will inform the debtor of the following:
(1)
that a transfer of the refund will be made and that the department intends to
offset the amount of the transfer against a claimed judgment balance owed by
the debtor;
(2) the amount of the
claimed judgment balance and that the judgment arose from an educational
loan;
(3) the name, address and
telephone number of the department;
(4) the amount of the refund to be offset
against the claimed judgment balance;
(5) that the debtor has 30 days from the date
of the notice to contest the offset by applying to the department for a hearing
with respect to the validity of the judgment balance asserted by the
department; and
(6) that failure by
the debtor to apply for a hearing within 30 days will be deemed a waiver of the
opportunity to contest the offset and to a hearing.
B. Notice to the debtor's spouse: Except as
provided in Subsection C of 5.7.33.9 NMAC, within ten days after the department
receives notice from TRD of a match on a offset request resulting from a joint
tax return the department shall send a notice to the spouse of the affected
debtor substantially in the form of Exhibit B in 5.7.33.15 NMAC. The notice
will inform the debtor's spouse of the following:
(1) a statement that a transfer of the refund
will be made and that the department intends to offset the amount of the
transfer against a claimed judgment balance owing by the debtor;
(2) the total amount of the refund and the
amount of the claimed judgment balance;
(3) the name, address and telephone number of
the department;
(4) a statement
that no debt is claimed against the spouse and that the spouse may be entitled
to receive all or part of the refund regardless of the claimed judgment balance
against the debtor;
(5) a statement
that to assert a claim to all or part of a refund the spouse must apply to the
department for a hearing within 30 days of the date indicated on the notice
with respect to the entitlement of the spouse to all or part of the refund from
which a transfer will be made at the request of the department; and
(6) a statement that failure of the spouse to
apply for a hearing within 30 days may be deemed a waiver of any claim of the
spouse with respect to the refund.
C. Judgments against debtor and spouse
jointly: In the event the department is asserting a claim for tax refund offset
based on a judgment entered jointly against the debtor and spouse, the
department shall send notice under Subsection A of 5.7.33.9 NMAC to both
persons and no notice under Subsection B of 5.7.33.9 NMAC will be
sent.
