Current through all regulations passed and filed through March 18, 2024
(A) What is the state tax refund offset
program?
(1) The state tax refund offset
program allows the offset of Ohio income tax refunds to collect delinquent aid
to dependent children, temporary assistance to needy families, and Ohio works
first (OWF) program overpayment claims.
(2) Periodically, but no less than annually,
the Ohio department of job and family services (ODJFS) certifies to the Ohio
department of taxation a list of applicable debtors.
(3) The Ohio department of taxation offsets
the certified debts against income tax refunds payable to the debtors, and
notifies the debtors and ODJFS of offsets which have been made.
(B) When is a claim referred to
the state tax refund offset program?
To refer a claim to the state tax refund offset program, the following
criteria must be met:
(1) The claim
must be past due. A claim becomes past due when a cash payment has not been
received for ninety consecutive days on an established overpayment. An
established overpayment is one in which an adult responsible for repayment of
the claim was issued a demand notice.
(2) The claim must be legally enforceable.
(a) The claim shall be properly established
by electronic records or paper documents held by the county agency in
accordance with section
5107.76
of the Revised Code and rule
5101:1-23-70
of the Administrative Code. The evidence shall include verification that the
assistance group was notified of hearing rights on the claim as described in
rule
5101:6-2-20
of the Administrative Code.
(b) The
claim has not been discharged in bankruptcy for the referred individual, nor is
there a bankruptcy stay in effect for the referred individual.
(3) The claim must be at least
twenty-five dollars or more.
(4)
The date of the initial demand letter must be within ten years of the date on
which the debt is certified to the state tax refund offset program. Exceptions
to the ten year limitation include claims reduced to final court judgments and
claims due to an individual's intentional violation of the program requirements
as described in rule
5101:1-23-75
of the Administrative Code.
(C) When is a claim not referred to the state
tax refund offset program?
(1) The claim is
not past due;
(2) The liable
adult(s) is eligible for an Ohio works first grant reduction. Even when the
claim is being repaid through a grant reduction of the assistance group's
benefits, any other liable adult who is not currently in receipt of Ohio works
first benefits may be referred to the Ohio department of taxation for
offset;
(3) A state hearing
decision on the issue of the claim is pending;
(4) The thirty days allowed for the
assistance group's response to a notice of overpayment has not yet
expired;
(5) An individual is
making payments pursuant to an agreed upon schedule of payments or the claim
has been paid in full; or
(6) There
is another documented reason that the claim is not past due.
(D) Who is liable for a claim?
A liable individual is one who was an adult or minor head of household
during the time period of the claim. Each claim is submitted in the name of one
or more liable individuals.
(E) How is the debtor notified of the offset?
ODJFS mails an automated thirty day notice of intent to offset to the
address provided by the Ohio department of taxation. The notice informs the
debtor that agency records document:
(1) The individual is liable for a specified
unpaid claim balance amount;
(2)
Previous notification about the claim was sent;
(3) Prior collection efforts have been
made;
(4) The claim is past due and
legally enforceable;
(5) The county
agency will refer the claim to the state tax refund offset program unless the
debtor;
(a) Pays the balance within thirty
days of the date of the notice when the balance is five hundred dollars or
less; or
(b) Pays five hundred
dollars within thirty days of the date of the notice ( when the debt is greater
than five hundred dollars) and makes other acceptable repayment arrangements
for the balance due;
(6)
Instructions about how to pay the claim;
(7) County contact information; and
(8) The right to request a review concerning
the intent to refer the debt for offset.
(F) What are the responsibilities of the
county agency?
Each county agency shall:
(1)
Maintain a toll-free telephone service available during the county agency's
regular business hours. The toll-free telephone number and the mailing address
of the county agency are printed on all state tax refund offset program notices
to debtors.
(2) Verify the debtor's
identifying information, access the claim case information, and discuss the
case with the debtor when the debtor receives the thirty day notice of intent
to offset and contacts the agency.
(3) Inform the debtor of repayment
arrangements acceptable to prevent offset as specified in paragraph (I) of this
rule.
(G) What are the
requirements for an individual to request a review of the debt referred?
The request for review shall:
(1) Be received at the county agency in
writing no later than thirty days after the mailing date of the notice of
intent;
(2) Include evidence or
documentation to support the debtor's belief that the claim is not past due or
is not legally enforceable;
(3)
Contain the debtor's social security number; and
(4) Include a statement, signed by the
debtor, authorizing another person to represent the debtor when someone other
than the debtor makes a request for review on behalf of the debtor.
(H) How is a request for review
handled?
(1) Within fifteen days of the
debtor's request for review the county agency shall notify the debtor in
writing of the following:
(a) Continued intent
to refer the claim for offset when the county agency determines that the claim
is past-due or is legally enforceable;
(b) The debtor's right to have ODJFS review
the county agency's decision; and
(c) Instructions and time limits for
requesting the review by ODJFS.
(2) When the county agency determines that
the claim is not past-due or is not legally enforceable, the county agency
shall notify the debtor in writing that the claim will not be referred for
offset, and take any action necessary to establish or recover the claim or
other action as may be required.
(I) What are the responsibilities of ODJFS
when a request for review is made?
(1) ODJFS
shall not refer for offset any claim for which a review has been requested
when:
(a) The county agency or ODJFS
determines that the claim is not past-due or is not legally enforceable;
or
(b) The county agency does not
complete a requested review or does not notify the debtor of the results of
that review.
(2) ODJFS
shall notify the county agency and the debtor of its decision concerning any
debtor's request for review. When the review decision is that the county
agency:
(a) Correctly determined the claim is
past-due and legally enforceable, ODJFS shall notify the debtor that any
further appeal must be made through the courts.
(b) Incorrectly determined the claim is
past-due and legally enforceable, ODJFS also must notify the county agency
about any corrective action which must be taken with respect to the
claim.
(3) When the
debtor makes an acceptable repayment arrangement with the county agency, the
claim is not referred for offset.
(J) What is an acceptable repayment
arrangement?
(1) When the claim(s) balance is
five-hundred dollars or less, the balance must be paid in full within thirty
days of the mailing date of the thirty day offset notice.
(2) When the claim(s) balance amount is more
than five-hundred dollars, a minimum payment of five-hundred dollars and a
signed, written agreement to repay the balance must be received by the county
agency within thirty days of the mailing date of the thirty day offset notice.
The repayment agreement must be acceptable to the county agency.
(3) Any payment the county agency receives in
response to a debtor's receipt of a thirty day state tax refund offset program
notice of intent to refer a claim for offset shall be credited to the claim(s)
which is to be referred for offset.
(4) The county agency shall enter the
repayment agreement and any additional information into the statewide automated
eligibility system on the day it is received.
(K) What happens when a claim does not meet
the criteria for referral?
(1) When the county
agency or ODJFS staff becomes aware that a claim referred for offset does not
meet all criteria for referral, ODJFS shall cancel the referral.
(2) When the reason for cancellation of the
referral is not because of a repayment arrangement being established as one of
the changes listed in paragraph (I) of this rule, the county agency shall
inform ODJFS of the inappropriate referral with the JFS 07430, "Offset Programs
Referral Cancellation/Refund Request."
(3) The county agency shall submit the JFS
07430 by facsimile or e-mail to ODJFS within one business day from the date of
the determination that the referral must be canceled.
(4) ODJFS shall update the statewide
automated eligibility system upon receipt of the JFS 07430 and the information
will be transmitted to the Ohio department of taxation in the next weekly
update file.
(L) What
happens when a claim is referred?
After the certification of a debt:
(1) ODJFS sends weekly updates of account
information to the Ohio department of taxation;
(2) Changes entered into the statewide
automated eligibility system, such as payments received, repayment
arrangements, decrease in claim balance and reopening of the case will
automatically update referral data already sent to the Ohio department of
taxation;
(3) When the offset
occurs, ODJFS credits the applicable claim(s) and updates the statewide
automated eligibility system accordingly, and ensures that the affected
individual is notified of the offset in writing; and
(4) Upon receiving notice of offset, ODJFS
shall refund any incorrect collection resulting from the offset. ODJFS must
also notify the individual of the refund amount in writing.
(M) Must the state tax refund
offset program information be safeguarded?
ODJFS and the county agency shall safeguard Ohio department of taxation
information from unauthorized access and use. This information includes printed
reports and on-line statewide automated eligibility system information provided
to authorized personnel. This information may be used only as needed for the
administration of the state tax refund offset program, and shall be protected
from overt and inadvertent disclosure.