Current through Register Vol. 35, No. 18, September 24, 2024
New Mexico law allows for the interception (offset) of an
obligor's tax refund to pay child support.
A. Criteria for state income tax offset:
Cases submitted for tax refund offset to the New Mexico taxation and revenue
department (TRD) must meet federal tax refund offset criteria. In interstate
cases, if New Mexico is the responding state, obligors are referred to TRD
only, not to IRS.
B. Pre-offset
notices/final notices: Within 10 days after receiving notification of an offset
from TRD, the Title IV-D agency will send a notice to the obligor at his or her
last known address of record with the Title IV-D agency. The notice will
include:
(1) a statement that an offset will
be made and that the Title IV-D agency intends to apply the amount of the
offset against a claimed debt;
(2)
the amount of the debt asserted;
(3) the name, address, and telephone number
of the Title IV-D agency to request a hearing;
(4) the amount of refund to be offset against
the debt asserted;
(5) a statement
that the obligor has 30 days from the date indicated on the notice to contest
the offset and request a hearing; and
(6) a statement that failure of the obligor
to 30 days will be deemed a waiver of the opportunity to contest the
offset.
C. If the refund
against which a debt is intended to be offset results from a joint return,
within 10 days after receiving the notification from TRD, the Title IV-D agency
will send a notice to the obligor's spouse (injured spouse) as identified on
the return, to the obligor's last known address of record with the Title IV-D
agency. The notice to the injured spouse will contain the following
information:
(1) a statement that an offset
may be made and the Title IV-D agency intends to apply the amount of the offset
against a claimed debt;
(2) the
total amount of the refund and the amount of each claimed debt;
(3) the name, address, and telephone number
of the Title IV-D agency;
(4) a
statement that no debt is claimed against the injured spouse and that the he or
she may be entitled to receive all or part of the refund, regardless of the
claimed debt against the obligor;
(5) a statement that to assert a claim to all
or part of the refund, the injured spouse must notify the Title IV-D agency
within 30 days from the date indicated on the notice of the injured spouse's
intention to seek his or her portion of the refund; and
(6) a statement that failure of the injured
spouse to notify the Title IV-D agency regarding his or her claim to all or
part of the refund within 30 days may be deemed a waiver of any
claim.
D. Upon the
transfer of money from TRD to the Title IV-D account, the Title IV-D agency
will notify the obligor of the final determination of the offset. The notice
includes:
(1) the amount of the TRD refund to
which the obligor was entitled prior to intercept;
(2) the offset amount and balance, if any, of
the debt still due; and
(3) the
amount of refund in excess of the debt due and owed to the obligor, if
any.
E. Contesting
referral for state tax offset: The appeal procedures are the same as for
federal tax refund offset with some exceptions.
(1) When the injured spouse 30 days. After
the 30 day hold, the state income tax offset monies will be applied as a
regular payment and distributed as outlined in
8.50.125.11
NMAC. The obligor shall receive full credit for the entire amount of tax
intercept that is applied to his or her case(s) including fees. Distribution of
tax intercept money for obligors with multiple Title IV-D cases shall be in
accordance with federal and state laws. If an offset is made to satisfy
non-TANF past due support from a refund based upon a joint return, the Title
IV-D agency may delay distribution of the injured spouse's share until notified
that the refund has been paid because of the injured spouse signed a release,
or for a period not to exceed six months from notification of offset, whichever
is shorter.
