Ohio Administrative Code › Title 5703 - Department of Taxation › Chapter 5703-7 - Income Tax › Section 5703-7-13 - State income tax refund offsets; portion of joint refund not belonging to obligor or recipient

Current through all regulations passed and filed through July 1, 2024
(A) Refunds of income taxes under Chapter
			 5747. of the Revised Code are subject to offset under sections
			 5747.12,
			 5747.121,
			 5747.122
			 and
			 5747.123
			 of the Revised Code. The tax commissioner will identify those taxpayers due a
			 refund who are subject to such offset based upon information provided by any
			 state or federal agency.
The commissioner will immediately disburse the refunds of those
				taxpayers to the appropriate fund or agency, to the extent they do not exceed
				the outstanding balance to be collected by such offset, and except as provided
				in paragraph (B) of this rule. Any remaining portion of the tax refunds will be
				paid to the taxpayer.
(B)
(1) A "liable spouse" is a taxpayer, included
			 on a jointly filed individual income tax return, who is liable for a debt under
			 sections
			 5747.12,
			 5747.121,
			 5747.122
			 and
			 5747.123
			 of the Revised Code. A "non-liable spouse" is a taxpayer, included on a jointly
			 filed individual income tax return, who is not liable for a debt under sections
			 5747.12,
			 5747.121,
			 5747.122,
			 and
			 5747.123
			 of the Revised Code.
(2) In the
			 case of taxpayers who file joint returns, where one taxpayer is a liable spouse
			 and one taxpayer is a non-liable spouse, only the portion of the refund
			 belonging to the liable spouse is subject to the offset under paragraph (A) of
			 this rule. The burden is on the taxpayers to prove that a portion of the refund
			 is not subject to offset based on the information shown on the taxpayers' joint
			 income tax return and the attachments thereto.
(3) The commissioner will notify the
			 taxpayers that they have twenty-one days from receipt of the notice to prove
			 the portion of the taxpayers' refund not subject to offset by utilizing the
			 following calculation:
(a) Step 1: The
			 taxpayer shall compute the ratio of the non-liable spouse's portion of the
			 taxpayers' Ohio adjusted gross income to the total Ohio adjusted gross income
			 as reporting for the tax year at issue. In computing this amount, the taxpayer
			 shall utilize only those adjustments contained in division (A) of section
			 5747.01 of
			 the Revised Code related to the income included in the non-liable spouse's
			 portion of federal adjusted gross income.
(b) Step 2: The taxpayer shall multiply the
			 taxpayers' total tax liability prior to applying any payments or withholding,
			 by the ratio obtained in step 1.
(c) Step 3: The taxpayer shall subtract the
			 product obtained in step 2 from the portion of all payments, including
			 withholdings and estimated payments, belonging to the non-liable
			 spouse.
(4) If the
			 taxpayers have provided a calculation under paragraph (B)(3) of this rule, the
			 commissioner shall review the calculation.
(a)
			 If the commissioner concurs, the offset under paragraph (A) of this rule will
			 not include any amounts due to the non-liable spouse. The commissioner will
			 immediately disburse such portion of the refund belonging to the liable spouse
			 to the appropriate fund or agency.
(b) If the commissioner does not concur, the
			 commissioner will notify the taxpayers and provide a revised calculation. The
			 notice will advise them that they have twenty-one days from receipt of the
			 notice to:
(i) For amounts subject to offset
			 under section
			 5747.12
			 of the Revised Code, submit any additional documentation to refute the revised
			 calculation;
(ii) For amounts
			 subject to offset under sections
			 5747.121,
			 5747.122,
			 and
			 5747.123
			 of the Revised Code, file a complaint with the commissioner concerning the
			 revision, along with an optional request for a hearing.
(5) If the taxpayers submit
			 additional documentation pursuant to paragraph (B)(4)(b)(i) of this rule, the
			 commissioner shall review the documentation and make any necessary adjustments.
			 If the taxpayers file a complaint pursuant to paragraph (B)(4)(b)(ii) of this
			 rule, the commissioner shall proceed according to the relevant statutory
			 provisions. Otherwise, the commissioner's revised calculation will be
			 substituted for that of the taxpayers. The commissioner will then make any
			 disbursements in the same manner as under paragraph (A) of this rule.
(6)
									Notwithstanding
			 paragraph (B)(3) of this rule, if the taxpayer requests and the commissioner
			 agrees, the commissioner may calculate the portion of the refund subject to
			 offset based on any information in the commissioner's
			 possession.
(7) If no such proof or
			 review request is submitted within the time specified, the full refund will be
			 subject to offset under a paragraph (A) of this rule.