names, taxpayer identification numbers, and ad-
dresses of each person filing such return.
‘‘(2) PRIORITIES FOR OFFSET.—Any overpay-
ment by a person shall be reduced pursuant to this
subsection—
‘‘(A) after such overpayment is reduced
pursuant to—
‘‘(i) subsection (a) with respect to any
liability for any internal revenue tax on the
part of the person who made the overpay-
ment,
‘‘(ii) subsection (c) with respect to
past-due support, and
‘‘(iii) subsection (d) with respect to
any past-due, legally enforceable debt owed
to a Federal agency, and
‘‘(B) before such overpayment is credited
to the future liability for any Federal internal
revenue tax of such person pursuant to sub-
section (b).
If the Secretary receives notice from 1 or more State
agencies of more than 1 debt subject to paragraph
(1) that is owed by such person to such an agency,
any overpayment by such person shall be applied
against such debts in the order in which such debts
accrued.
‘‘(3) NOTICE; CONSIDERATION OF EVIDENCE.—
No State may take action under this subsection until
such State—
‘‘(A) notifies the person owing the past-due
State tax liability that the State proposes to
take action pursuant to this section,
‘‘(B) gives such person at least 60 days to
present evidence that all or part of such liability
is not past-due or not legally enforceable,
‘‘(C) considers any evidence presented by
such person and determines that an amount of
such debt is past-due and legally enforceable,
and
‘‘(D) satisfies such other conditions as the
Secretary may prescribe to ensure that the de-
termination made under subparagraph (C) is
valid and that the State has made reasonable
efforts to obtain payment of such State tax ob-
ligation.
‘‘(4) PAST-DUE, LEGALLY ENFORCEABLE STATE
TAX OBLIGATION.—For purposes of this subsection,
the term ‘past-due, legally enforceable State tax obli-
gation’ means a debt—
‘‘(A)(i) which resulted from—
‘‘(I) a judgment rendered by a court
of competent jurisdiction which has deter-
mined an amount of State tax to be due,
or
‘‘(II) a determination after an admin-
istrative hearing which has determined an
amount of State tax to be due, and
‘‘(ii) which is no longer subject to judicial
review, or
‘‘(B) which resulted from a State tax
which has been assessed but not collected, the
time for redetermination of which has expired,
and which has not been delinquent for more
than 10 years.
For purposes of this paragraph, the term ‘State tax’
includes any local tax administered by the chief tax
administration agency of the State.
‘‘(5) REGULATIONS.—The Secretary shall issue
regulations prescribing the time and manner in
which States must submit notices of past-due, legally
enforceable State tax obligations and the necessary
information that must be contained in or accompany
such notices. The regulations shall specify the types
of State taxes and the minimum amount of debt to
which the reduction procedure established by para-
graph (1) may be applied. The regulations may re-
quire States to pay a fee to reimburse the Secretary
for the cost of applying such procedure. Any fee paid
to the Secretary pursuant to the preceding sentence
shall be used to reimburse appropriations which bore
all or part of the cost of applying such procedure.
‘‘(6) ERRONEOUS
PAYMENT
TO
STATE.—Any
State receiving notice from the Secretary that an er-
roneous payment has been made to such State under
paragraph (1) shall pay promptly to the Secretary,
in accordance with such regulations as the Secretary
may prescribe, an amount equal to the amount of
such erroneous payment (without regard to whether
any other amounts payable to such State under such
paragraph have been paid to such State).’’
(b) DISCLOSURE
OF CERTAIN INFORMATION
TO
STATES REQUESTING REFUND OFFSETS FOR PAST-DUE,
LEGALLY ENFORCEABLE STATE TAX OBLIGATIONS.—
(1) Paragraph (10) of section 6103(l) of such
Code is amended by striking ‘‘(c) or (d)’’ each place
it appears and inserting ‘‘(c), (d), or (e)’’.
(2) The paragraph heading for such paragraph
(10) is amended by striking ‘‘SECTION 6402(c) OR
6402(d)’’ and inserting ‘‘SUBSECTION (c), (d), OR (e)
OF SECTION 6402’’.
(c) CONFORMING AMENDMENTS.—
(1) Subsection (a) of section 6402 of such Code
is amended by striking ‘‘(c) and (d)’’ and inserting
‘‘(c), (d), and (e)’’.
(2) Paragraph (2) of section 6402(d) of such
Code is amended by striking ‘‘and before such over-
payment’’ and inserting ‘‘and before such overpay-
ment is reduced pursuant to subsection (e) and be-
fore such overpayment’’.
(3) Subsection (f) of section 6402 of such Code,
as redesignated by subsection (a), is amended—
(A) by striking ‘‘(c) or (d)’’ and inserting
‘‘(c), (d), or (e)’’, and
(B) by striking ‘‘Federal agency’’ and in-
serting ‘‘Federal agency or State’’.
(4) Subsection (h) of section 6402 of such
Code, as redesignated by subsection (a), is amended
by striking ‘‘subsection (c)’’ and inserting ‘‘sub-
section (c) or (e)’’.
(d) AMENDMENTS APPLIED AFTER TECHNICAL COR-
RECTIONS TO PERSONAL RESPONSIBILITY AND WORK OP-
PORTUNITY RECONCILIATION ACT OF 1996.—