Opinion ID: 1268943
Heading Depth: 3
Heading Rank: 4

Heading: Associations' Liability

Text: Associations argue the trial judge erred by holding them liable to the Named and Class Plaintiffs for return of the seized income tax refunds and interest. We agree. The 1995 Act required the claimant agency seeking the income tax setoff to provide the statutorily required notice to the delinquent taxpayer. § 12-56-60(A). In addition, it provided any review of refund setoffs was through the claimant agency. § 12-56-60(B). If the claimant agency determined a setoff was excessive, the claimant agency was to provide the refund and interest. Id. These statutory provisions indicate the legislature clearly intended the refund of any excessive income tax setoff be made by the claimant agency who collected the setoff. Similarly, any claimant agency's failure to follow the statutory procedure should result in liability by the claimant agency, not the Associations. [9]