2023 Indiana Code › Title 6. Taxation › Article 8.1. Department of State Revenue; Tax Administration › Chapter 9.7. Treasury Offset Program › 6-8.1-9.7-9. Duties and Powers of the Office of Management and Budget Under an Offset Agreement

Sec. 9. The following apply if the office of management and budget enters into an offset agreement:
(1) The office of management and budget shall do the following as provided in the offset agreement:
(A) Determine if a person whose name has been certified by a federal official as provided in the offset agreement is due a state payment.
(B) Withhold a state payment that is due a person whose name has been certified by a federal official as provided in the offset agreement.
(C) Notify the person from whom a state payment is withheld under this section of the amount withheld in accordance with the offset agreement.
(D) Pay to the federal official making the certification under section 8 of this chapter the lesser of:
(i) the entire state payment withheld; or
(ii) the amount certified by the federal official.
If the amount certified by the federal official is less than a state payment due to the person, the office of management and budget shall pay to the person the part of the state payment due to the person that exceeds the certified amount, less any fee under section 10 of this chapter.
(2) If an individual filed a joint income tax return and the debt certified by a federal official is not the liability of both parties to the joint income tax return, the office of management and budget may not withhold or pay to the federal official the part of the income tax refund attributable to the individual not owing the debt. The department shall notify taxpayers filing a joint income tax return of a proposed offset of a state income tax refund for a debt certified by a federal official. A taxpayer that filed a joint income tax return and receives such notice may, not more than sixty (60) days after the notice is sent, notify the department in writing that the taxpayer asserts that a part of the income tax refund is attributable to the individual not owing the debt. If a taxpayer that is a party to the joint income tax return does not notify the department of such an assertion not more than sixty (60) days after the department's notice is sent, all of the income tax refund is considered attributable to the individual owing the debt.
(3) The office of management and budget may do the following as provided in the offset agreement:
(A) Certify to a federal official a person's delinquent debt owed to the state by providing the federal official:
(i) the full name and address of the person and any other names known to be used by the person;
(ii) the person's Social Security number or federal tax identification number;
(iii) the amount of the person's debt owed to the state;
(iv) a statement certifying that the person's debt is past due, that due process has been provided to the person, and that the person's debt is legally enforceable in the amount certified, which may be provided in procedures for certifying payments as specified in the offset agreement; and
(v) any other information required by state law or rules applicable to the collection of the debt by offset of federal payments or required by the offset agreement.
(B) Request that the federal official withhold from any federal payment to which the person is entitled the lesser of:
(i) the entire federal payment; or
(ii) the amount certified by the office of management and budget;
as provided in the offset agreement. If the amount certified by the office of management and budget is less than a federal payment due to the person, the federal official may pay to the person the part of the federal payment due to the person that exceeds the certified amount, less any fee under section 10 of this chapter.
As added by P.L.293-2013(ts), SEC.33.