IC 31-16-12.5
    Chapter 12.5. Seizure of State Income Tax Refunds forDelinquent Child Support

IC 31-16-12.5-1
Exception
    Sec. 1. This chapter does not apply to a support order entered ina Title IV-D case.
As added by P.L.27-2004, SEC.4.

IC 31-16-12.5-2
Petition; procedure; intervention
    Sec. 2. (a) A custodial parent may file a petition for a setoff ofchild support from a state income tax refund payable to a childsupport obligor in:
        (1) the court that entered the original child support order; or
        (2) a court of competent jurisdiction located in the county ofresidence of the custodial parent.
    (b) The petition must be verified and must include all of thefollowing:
        (1) The full name of:
            (A) the obligor;
            (B) the custodial parent; and
            (C) each child to whom the obligor owes child support.
        (2) An averment that:
            (A) the obligor's aggregate child support arrearage on thedate the petition is filed is at least one thousand five hundreddollars ($1,500); and
            (B) the obligor has intentionally violated the terms of themost recent child support order.
        (3) An indication of whether the custodial parent:
            (A) has received or is receiving assistance under the TitleIV-A program; or
            (B) has assigned child support payments under IC 12-14-7-1;
        during the period for which child support is owed by theobligor.
    (c) The court shall notify the child support bureau of thedepartment of the pendency of an action under this chapter if thepetition:
        (1) indicates under subsection (b)(3)(A) that the custodialparent has received or is receiving assistance; or
        (2) indicates under subsection (b)(3)(B) that an assignment hasoccurred.
    (d) The state has a right to intervene as a party in a hearing underthis chapter if the custodial parent has received or is receivingassistance as described in subsection (b)(3)(A) or if an assignment asdescribed in subsection (b)(3)(B) has occurred.
As added by P.L.27-2004, SEC.4. Amended by P.L.145-2006,SEC.238.
IC 31-16-12.5-3
Prohibition
    Sec. 3. A custodial parent may not bring an action under thischapter with respect to an obligor's state income tax refund for acalendar year if the child support bureau has initiated an action underIC 6-8.1-9.5 to set off the obligor's tax refund for that calendar year.
As added by P.L.27-2004, SEC.4.

IC 31-16-12.5-4
Determination of refund eligibility and filing status
    Sec. 4. (a) A court that receives a petition under section 2 of thischapter shall send an order requiring the department of state revenueto determine the obligor's eligibility for a state income tax refund,whether the obligor filed a joint state income tax return, and if theobligor filed a joint state income tax return, the name and address ofthe individual with whom the obligor filed the joint state income taxreturn, if the court preliminarily determines that probable causeexists to believe that the obligor named in the petition:
        (1) was at least one thousand five hundred dollars ($1,500) inarrears on child support payments at the time the custodialparent filed the petition under section 2 of this chapter; and
        (2) has intentionally violated the terms of the most recentsupport order.
    (b) The department of state revenue, upon receiving an orderunder subsection (a), shall notify the court whether the obligornamed in the order:
        (1) is eligible for a state income tax refund; and
        (2) has filed a joint state income tax return, and if the obligorhas filed a joint state income tax return, the name and addressof the individual with whom the obligor filed the joint stateincome tax return.
As added by P.L.27-2004, SEC.4. Amended by P.L.2-2005, SEC.75.

IC 31-16-12.5-5
Hearing; notice
    Sec. 5. (a) If the court receives notification under section 4(b) ofthis chapter that the obligor is eligible for a state income tax refund,the court shall set the matter for a hearing at least thirty (30) daysafter the date that the court receives notification under section 4(b)of this chapter.
    (b) If the court sets the matter for a hearing under subsection (a),the court must send notice of the hearing by certified mail, returnreceipt requested, to the most recent address of the obligor. Thenotice must include the date of the hearing and a copy of the petitionfiled under section 2 of this chapter.
    (c) If the court receives notification under section 4(b) of thischapter that the obligor filed a joint state income tax return, the courtshall send a notice to the individual with whom the obligor filed ajoint state income tax return by certified mail, return receiptrequested, and inform the individual:        (1) of the hearing date;
        (2) that the court may order the individual's and obligor's jointstate income tax refund to be intercepted for the obligor's pastdue child support payments; and
        (3) that the individual may petition the court or providetestimony at the hearing that the individual believes that part ofthe individual's and obligor's joint state income tax refundshould not be intercepted for the obligor's child support andshould be paid to the individual.
As added by P.L.27-2004, SEC.4.

IC 31-16-12.5-6
Final order; deadline
    Sec. 6. (a) The court shall issue a final order for a state income taxrefund setoff following a hearing under this chapter if the courtdetermines by clear and convincing evidence that the obligor namedin the petition:
        (1) is at least one thousand five hundred dollars ($1,500) inarrears on child support payments; and
        (2) has intentionally violated the terms of the most recent childsupport order applying to the obligor.
    (b) The final order must include the amount of child supportarrearage that the department of state revenue shall withhold fromthe obligor's state income tax refund and the obligor's Social Securitynumber.
    (c) In order for the setoff to take effect with respect to a stateincome tax refund, the final order of the court must be received bythe department of state revenue before November 1 of the taxableyear for which the tax refund is payable.
As added by P.L.27-2004, SEC.4.

IC 31-16-12.5-7
Distribution of refund
    Sec. 7. (a) The department of state revenue shall submit the refundamount set forth in the final order to the clerk of the circuit court fordistribution.
    (b) If the custodial parent:
        (1) has received or is receiving assistance under the Title IV-Aprogram; or
        (2) has assigned child support payments under IC 12-14-7-1;
during the period of time for which child support is owed by theobligor, the court shall determine whether a portion of the refundmust be distributed to the state under subsection (c).
    (c) If the court determines that an amount is owed to the stateunder subsection (b), the court shall order the clerk of the circuitcourt to distribute the refund:
        (1) to the state in an amount determined by the court; and
        (2) to the custodial parent in any amount remaining afterdistribution under subdivision (1).
As added by P.L.27-2004, SEC.4.
IC 31-16-12.5-8
Interest charges
    Sec. 8. A final order issued under section 6 of this chapter mayinclude interest charges in an amount determined underIC 31-14-12-1 or IC 31-16-12-2.
As added by P.L.27-2004, SEC.4.

IC 31-16-12.5-9
Fee
    Sec. 9. A custodial parent may not be charged a fee to seek asetoff of a state income tax refund.
As added by P.L.103-2007, SEC.22.