2023 Rhode Island General Laws › Title 44 - Taxation › Chapter 44-30.1 - Setoff of Refund of Personal Income Tax › Section 44-30.1-4. - Procedures for setoff and notification of a debtor.

§ 44-30.1-4. Procedures for setoff and notification of a debtor.
(a)
The division of taxation shall prescribe the time or times at which the claimant agency must submit notices of past-due support, the manner in which the notices must be submitted, and the necessary information that must be contained in or accompany the notices. The division of taxation shall, from time to time, determine the minimum amount of claim to which the setoff procedure may be applied.
(b)
Prior to submitting information relating to a debtor for purposes of setoff of the debtor’s income tax refund, the claimant agency shall provide written notice to each debtor, the amount of past-due support, delinquent court costs, fines or restitution, or benefit overpayments and interest owed, other obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, the intention to set off the amount owed against the refund, the debtor’s right to an administrative hearing to contest the setoff upon written request made within thirty (30) days of the mailing of the notice to the debtor, the debtor’s right to judicial review of the administrative hearing decision, the general nature of the potential defenses available to the debtor, and, in general terms, the rights of non-obligated spouses with respect to income tax refunds in the event a joint return is filed.
(c)
At the time of the transfer of funds to a claimant agency as provided in this chapter, the division of taxation shall notify the debtor whose refund is sought to be set off that the transfer has been made. The notice shall state the name of the debtor, the amount of the past-due support being claimed, the transfer of funds to the claimant agency, the amount of the refund in excess of the amount claimed, if any. In the case of a joint refund, the notice shall also state the name of a taxpayer-spouse named in the return, if any, against whom no past-due support, delinquent court costs, fines or restitution, or benefit overpayments and interest owed, obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages is claimed, the opportunity to request that the refund be divided between the spouses by filing an amended income tax return in conformance with § 44-30-11 showing each spouse’s share of the tax and the contribution to the overpayment of tax resulting in the refund.
(d)
Upon receipt of funds transferred from the division of taxation, the claimant agency deposits and holds the funds in an escrow account until final determination of setoff. Upon final determination of the amount of the claim to be set off by: (1) default for failure to apply for a hearing pursuant to subsection (b) of this section, or (2) decision of the hearing officer pursuant to § 44-30.1-5, the claimant agency shall remove the account of the claim payment from the escrow account, and credit the amount to the debtor’s obligation. The pendency of judicial proceedings pursuant to § 42-35-15 to review the administrative decision shall not stay nor delay the setoff, transfer, and disbursement of the tax refund in question.
(e)
With respect to setoff for past-due support, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, the division of taxation shall provide the debtor’s address and social security number to the department of human services.
(f)
With respect to setoff for past-due support, the department of human services must inform a non-public assistance custodial parent in advance if it will first apply any setoff amount to be received from the division of taxation to satisfy past-due support assigned to it.
History of Section.
P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2; P.L. 1984, ch. 241, § 1; P.L. 1986, ch. 136, § 1; P.L. 1988, ch. 208, § 3; P.L. 1999, ch. 170, § 2; P.L. 2004, ch. 595, art. 20, § 1; P.L. 2009, ch. 68, art. 16, § 6.