IC 6-8.1-9.5-1 Definitions
Sec. 1. For purposes of this chapter:
"Claimant agency" means any state department, institution,
commission, committee, board, division, bureau, authority, officer,
official, or clerk of a circuit court.
"Debtor" means any person or legal entity that is delinquent in
paying a debt to a claimant agency that has not been adjudicated,
satisfied by court order, set aside by court order, or discharged in
bankruptcy.
"Debt" means any liquidated amount owed and due to a Title
IV-D agency of another state, or to any claimant agency which has
accrued through contract, subrogation, assignment for purposes of
collection, tort, operation of law, or any other legal theory, regardless
of whether there is an outstanding judgment for that sum. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.3; P.L.277-2003, SEC.1.
IC 6-8.1-9.5-2 Debt owed to claimant agency; agency's entitlement to debtor's
refund
Sec. 2. If a debtor owes a claimant agency a certified delinquent
debt that agency is entitled to have the department set off the tax
refund against the delinquent debt. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-3 Application by agency
Sec. 3. (a) To obtain a set off by the department, a claimant
agency must file an application for the set off with the department
before November 30 of the year preceding the calendar year in which
a tax refund is payable by the department. The department shall
prescribe the form of and the contents of the application.
(b) An application filed pursuant to this section is effective only
for the purpose of set off of tax refunds that are payable in the
calendar year that succeeds the calendar year in which an application
is filed. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-4 Determination of entitlement to refund; notification of claimant
agency
Sec. 4. After the department receives an application for a set off
pursuant to section 3 of this chapter, the department shall determine
whether the debtor is entitled to a tax refund. If the department
determines the debtor is entitled to a tax refund, it shall notify the
claimant agency of this fact.
As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-5 Notice by claimant agency of intent to have refund set off
Sec. 5. After a claimant agency receives notice that a debtor is
entitled to a tax refund from the department, the claimant agency
must within fifteen (15) days of the receipt of the notice of a tax
refund send written notice to the debtor and the department of its
intent to have the tax refund set off. This notice must clearly set forth
the basis for the claim to the debt and set off. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-6 Contest of agency's claim; notice
Sec. 6. A debtor who receives written notice pursuant to section
5 of this chapter is entitled to contest the claimant agency's right to
the debt and set off at a hearing only if the debtor within thirty (30)
days of his receipt of notice mails to the claimant agency written
notice that he intends to contest the claimant agency's right to the
debt. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-7 Hearing on contested claim
Sec. 7. If a claimant agency receives written notice that a debtor
intends to contest its claim to a debt and set off, the claimant agency
shall hold a hearing under IC 4-21.5-3. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.7-1987,
SEC.7.
IC 6-8.1-9.5-8 Certification of debt; payment to agency
Sec. 8. After a final determination of the validity of a debt due a
claimant agency pursuant to sections 6 and 7 of this chapter, the
claimant agency shall certify to the department the amount owed by
the debtor to the claimant agency that is subject to set off. Upon
receipt of certification of a debt the department shall set off the
appropriate amount and pay it to the appropriate claimant agency. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-9 Notice to debtor of action taken; accounting
Sec. 9. If the department sets off a debtor's tax refund pursuant to
this chapter, it shall serve the debtor written notice of the action and
an accounting of the action taken on any refund. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-10 Collection fee
Sec. 10. The department of revenue may charge the claimant
agency a fee of fifteen percent (15%) of any funds it sets off under
this chapter as a collection fee for its services. The department must
bill the claimant agency in order to collect this fee. However, the
department may not assess a fee to a state agency or custodial parent
for seeking a setoff to a state or federal income tax refund for past
due child support. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.4; P.L.103-2007, SEC.4.
IC 6-8.1-9.5-11 Combined returns
Sec. 11. If set off is sought pursuant to the provisions of this
chapter against the combined refund of taxpayers who have
previously filed a combined return, the entire refund is subject to set
off unless there is a timely defense raised by a co-refundee who is
not a debtor as defined in this chapter. If a timely defense is raised
that the refund is based on a combined application of a debtor and a
nondebtor, then set off shall only be effected against the debtor's
share of the refund. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-12 Multiple claims; priority
Sec. 12. Priority in multiple claims to refunds allowed to be set
off under this chapter shall be in the order in time which a claimant
agency has filed a written notice with the department of its intention
to effect collection through set off under this chapter. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-13 Disclosure of information and records; taxpayers; child support
obligations
Sec. 13. (a) Notwithstanding IC 6-8.1-7 or any other provision of
law prohibiting disclosure of a taxpayer's records or information, all
information exchanged among the department, the claimant agency,
and the debtor necessary to accomplish the purpose of this chapter is
lawful.
(b) Whenever the child support bureau of the department of child
services seeks to enforce a child support obligation through a setoff
against a debtor's tax refund, the department shall make the following
information available to that agency and to any other state's Title
IV-D agency that is enforcing the child support order against the
debtor:
(1) The debtor's Social Security account number (or numbers,
if the debtor has more than one (1) number).
(2) The debtor's home address. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.5; P.L.2-1992, SEC.73; P.L.145-2006, SEC.20.
IC 6-8.1-9.5-1 Definitions
Sec. 1. For purposes of this chapter:
"Claimant agency" means any state department, institution,
commission, committee, board, division, bureau, authority, officer,
official, or clerk of a circuit court.
"Debtor" means any person or legal entity that is delinquent in
paying a debt to a claimant agency that has not been adjudicated,
satisfied by court order, set aside by court order, or discharged in
bankruptcy.
"Debt" means any liquidated amount owed and due to a Title
IV-D agency of another state, or to any claimant agency which has
accrued through contract, subrogation, assignment for purposes of
collection, tort, operation of law, or any other legal theory, regardless
of whether there is an outstanding judgment for that sum. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.3; P.L.277-2003, SEC.1.
IC 6-8.1-9.5-2 Debt owed to claimant agency; agency's entitlement to debtor's
refund
Sec. 2. If a debtor owes a claimant agency a certified delinquent
debt that agency is entitled to have the department set off the tax
refund against the delinquent debt. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-3 Application by agency
Sec. 3. (a) To obtain a set off by the department, a claimant
agency must file an application for the set off with the department
before November 30 of the year preceding the calendar year in which
a tax refund is payable by the department. The department shall
prescribe the form of and the contents of the application.
(b) An application filed pursuant to this section is effective only
for the purpose of set off of tax refunds that are payable in the
calendar year that succeeds the calendar year in which an application
is filed. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-4 Determination of entitlement to refund; notification of claimant
agency
Sec. 4. After the department receives an application for a set off
pursuant to section 3 of this chapter, the department shall determine
whether the debtor is entitled to a tax refund. If the department
determines the debtor is entitled to a tax refund, it shall notify the
claimant agency of this fact.
As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-5 Notice by claimant agency of intent to have refund set off
Sec. 5. After a claimant agency receives notice that a debtor is
entitled to a tax refund from the department, the claimant agency
must within fifteen (15) days of the receipt of the notice of a tax
refund send written notice to the debtor and the department of its
intent to have the tax refund set off. This notice must clearly set forth
the basis for the claim to the debt and set off. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-6 Contest of agency's claim; notice
Sec. 6. A debtor who receives written notice pursuant to section
5 of this chapter is entitled to contest the claimant agency's right to
the debt and set off at a hearing only if the debtor within thirty (30)
days of his receipt of notice mails to the claimant agency written
notice that he intends to contest the claimant agency's right to the
debt. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-7 Hearing on contested claim
Sec. 7. If a claimant agency receives written notice that a debtor
intends to contest its claim to a debt and set off, the claimant agency
shall hold a hearing under IC 4-21.5-3. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.7-1987,
SEC.7.
IC 6-8.1-9.5-8 Certification of debt; payment to agency
Sec. 8. After a final determination of the validity of a debt due a
claimant agency pursuant to sections 6 and 7 of this chapter, the
claimant agency shall certify to the department the amount owed by
the debtor to the claimant agency that is subject to set off. Upon
receipt of certification of a debt the department shall set off the
appropriate amount and pay it to the appropriate claimant agency. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-9 Notice to debtor of action taken; accounting
Sec. 9. If the department sets off a debtor's tax refund pursuant to
this chapter, it shall serve the debtor written notice of the action and
an accounting of the action taken on any refund. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-10 Collection fee
Sec. 10. The department of revenue may charge the claimant
agency a fee of fifteen percent (15%) of any funds it sets off under
this chapter as a collection fee for its services. The department must
bill the claimant agency in order to collect this fee. However, the
department may not assess a fee to a state agency or custodial parent
for seeking a setoff to a state or federal income tax refund for past
due child support. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.4; P.L.103-2007, SEC.4.
IC 6-8.1-9.5-11 Combined returns
Sec. 11. If set off is sought pursuant to the provisions of this
chapter against the combined refund of taxpayers who have
previously filed a combined return, the entire refund is subject to set
off unless there is a timely defense raised by a co-refundee who is
not a debtor as defined in this chapter. If a timely defense is raised
that the refund is based on a combined application of a debtor and a
nondebtor, then set off shall only be effected against the debtor's
share of the refund. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-12 Multiple claims; priority
Sec. 12. Priority in multiple claims to refunds allowed to be set
off under this chapter shall be in the order in time which a claimant
agency has filed a written notice with the department of its intention
to effect collection through set off under this chapter. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-13 Disclosure of information and records; taxpayers; child support
obligations
Sec. 13. (a) Notwithstanding IC 6-8.1-7 or any other provision of
law prohibiting disclosure of a taxpayer's records or information, all
information exchanged among the department, the claimant agency,
and the debtor necessary to accomplish the purpose of this chapter is
lawful.
(b) Whenever the child support bureau of the department of child
services seeks to enforce a child support obligation through a setoff
against a debtor's tax refund, the department shall make the following
information available to that agency and to any other state's Title
IV-D agency that is enforcing the child support order against the
debtor:
(1) The debtor's Social Security account number (or numbers,
if the debtor has more than one (1) number).
(2) The debtor's home address. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.5; P.L.2-1992, SEC.73; P.L.145-2006, SEC.20.
IC 6-8.1-9.5-1 Definitions
Sec. 1. For purposes of this chapter:
"Claimant agency" means any state department, institution,
commission, committee, board, division, bureau, authority, officer,
official, or clerk of a circuit court.
"Debtor" means any person or legal entity that is delinquent in
paying a debt to a claimant agency that has not been adjudicated,
satisfied by court order, set aside by court order, or discharged in
bankruptcy.
"Debt" means any liquidated amount owed and due to a Title
IV-D agency of another state, or to any claimant agency which has
accrued through contract, subrogation, assignment for purposes of
collection, tort, operation of law, or any other legal theory, regardless
of whether there is an outstanding judgment for that sum. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.3; P.L.277-2003, SEC.1.
IC 6-8.1-9.5-2 Debt owed to claimant agency; agency's entitlement to debtor's
refund
Sec. 2. If a debtor owes a claimant agency a certified delinquent
debt that agency is entitled to have the department set off the tax
refund against the delinquent debt. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-3 Application by agency
Sec. 3. (a) To obtain a set off by the department, a claimant
agency must file an application for the set off with the department
before November 30 of the year preceding the calendar year in which
a tax refund is payable by the department. The department shall
prescribe the form of and the contents of the application.
(b) An application filed pursuant to this section is effective only
for the purpose of set off of tax refunds that are payable in the
calendar year that succeeds the calendar year in which an application
is filed. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-4 Determination of entitlement to refund; notification of claimant
agency
Sec. 4. After the department receives an application for a set off
pursuant to section 3 of this chapter, the department shall determine
whether the debtor is entitled to a tax refund. If the department
determines the debtor is entitled to a tax refund, it shall notify the
claimant agency of this fact.
As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-5 Notice by claimant agency of intent to have refund set off
Sec. 5. After a claimant agency receives notice that a debtor is
entitled to a tax refund from the department, the claimant agency
must within fifteen (15) days of the receipt of the notice of a tax
refund send written notice to the debtor and the department of its
intent to have the tax refund set off. This notice must clearly set forth
the basis for the claim to the debt and set off. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-6 Contest of agency's claim; notice
Sec. 6. A debtor who receives written notice pursuant to section
5 of this chapter is entitled to contest the claimant agency's right to
the debt and set off at a hearing only if the debtor within thirty (30)
days of his receipt of notice mails to the claimant agency written
notice that he intends to contest the claimant agency's right to the
debt. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-7 Hearing on contested claim
Sec. 7. If a claimant agency receives written notice that a debtor
intends to contest its claim to a debt and set off, the claimant agency
shall hold a hearing under IC 4-21.5-3. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.7-1987,
SEC.7.
IC 6-8.1-9.5-8 Certification of debt; payment to agency
Sec. 8. After a final determination of the validity of a debt due a
claimant agency pursuant to sections 6 and 7 of this chapter, the
claimant agency shall certify to the department the amount owed by
the debtor to the claimant agency that is subject to set off. Upon
receipt of certification of a debt the department shall set off the
appropriate amount and pay it to the appropriate claimant agency. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-9 Notice to debtor of action taken; accounting
Sec. 9. If the department sets off a debtor's tax refund pursuant to
this chapter, it shall serve the debtor written notice of the action and
an accounting of the action taken on any refund. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-10 Collection fee
Sec. 10. The department of revenue may charge the claimant
agency a fee of fifteen percent (15%) of any funds it sets off under
this chapter as a collection fee for its services. The department must
bill the claimant agency in order to collect this fee. However, the
department may not assess a fee to a state agency or custodial parent
for seeking a setoff to a state or federal income tax refund for past
due child support. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.4; P.L.103-2007, SEC.4.
IC 6-8.1-9.5-11 Combined returns
Sec. 11. If set off is sought pursuant to the provisions of this
chapter against the combined refund of taxpayers who have
previously filed a combined return, the entire refund is subject to set
off unless there is a timely defense raised by a co-refundee who is
not a debtor as defined in this chapter. If a timely defense is raised
that the refund is based on a combined application of a debtor and a
nondebtor, then set off shall only be effected against the debtor's
share of the refund. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-12 Multiple claims; priority
Sec. 12. Priority in multiple claims to refunds allowed to be set
off under this chapter shall be in the order in time which a claimant
agency has filed a written notice with the department of its intention
to effect collection through set off under this chapter. As added by Acts 1981, P.L.97, SEC.1.
IC 6-8.1-9.5-13 Disclosure of information and records; taxpayers; child support
obligations
Sec. 13. (a) Notwithstanding IC 6-8.1-7 or any other provision of
law prohibiting disclosure of a taxpayer's records or information, all
information exchanged among the department, the claimant agency,
and the debtor necessary to accomplish the purpose of this chapter is
lawful.
(b) Whenever the child support bureau of the department of child
services seeks to enforce a child support obligation through a setoff
against a debtor's tax refund, the department shall make the following
information available to that agency and to any other state's Title
IV-D agency that is enforcing the child support order against the
debtor:
(1) The debtor's Social Security account number (or numbers,
if the debtor has more than one (1) number).
(2) The debtor's home address. As added by Acts 1981, P.L.97, SEC.1. Amended by P.L.53-1985,
SEC.5; P.L.2-1992, SEC.73; P.L.145-2006, SEC.20.
