A. If a claimant agency other than the Internal Revenue Service receiveswritten application of the debtor's intention to contest at a hearing theclaim upon which the intended setoff is based, it shall grant a hearingaccording to procedures established by that agency under its operatingstatutes to determine whether the claim is valid. Additionally, it shall bedetermined at the hearing whether the claimed sum asserted as due and owingis correct, and if not, an adjustment to the claim shall be made. A debtor ofthe Internal Revenue Service shall contest the claim only in accordance withfederal law and procedures.
B. Pending final determination at the hearing of the validity of the debtasserted by the claimant agency, no action shall be taken in furtherance ofcollection through the setoff procedure allowed under this article.
C. No person hearing the debtor's application contesting the claimantagency's claim shall have been involved in the prior circumstances which haveculminated in such dispute.
D. No issue may be considered at the hearing which has been previouslylitigated.
E. In the case of setoff arising out of delinquent local taxes, the scope ofthe hearing shall be limited to determining whether the setoff is a taxobligation that remains due and owing to the locality, and shall not addressthe underlying basis of the tax obligation.
(Code 1950, § 58-19.13; 1981, c. 408; 1982, c. 621; 1984, cc. 675, 720; 1996,cc. 363, 413; 1997, c. 496.)
A. If a claimant agency other than the Internal Revenue Service receiveswritten application of the debtor's intention to contest at a hearing theclaim upon which the intended setoff is based, it shall grant a hearingaccording to procedures established by that agency under its operatingstatutes to determine whether the claim is valid. Additionally, it shall bedetermined at the hearing whether the claimed sum asserted as due and owingis correct, and if not, an adjustment to the claim shall be made. A debtor ofthe Internal Revenue Service shall contest the claim only in accordance withfederal law and procedures.
B. Pending final determination at the hearing of the validity of the debtasserted by the claimant agency, no action shall be taken in furtherance ofcollection through the setoff procedure allowed under this article.
C. No person hearing the debtor's application contesting the claimantagency's claim shall have been involved in the prior circumstances which haveculminated in such dispute.
D. No issue may be considered at the hearing which has been previouslylitigated.
E. In the case of setoff arising out of delinquent local taxes, the scope ofthe hearing shall be limited to determining whether the setoff is a taxobligation that remains due and owing to the locality, and shall not addressthe underlying basis of the tax obligation.
(Code 1950, § 58-19.13; 1981, c. 408; 1982, c. 621; 1984, cc. 675, 720; 1996,cc. 363, 413; 1997, c. 496.)
A. If a claimant agency other than the Internal Revenue Service receiveswritten application of the debtor's intention to contest at a hearing theclaim upon which the intended setoff is based, it shall grant a hearingaccording to procedures established by that agency under its operatingstatutes to determine whether the claim is valid. Additionally, it shall bedetermined at the hearing whether the claimed sum asserted as due and owingis correct, and if not, an adjustment to the claim shall be made. A debtor ofthe Internal Revenue Service shall contest the claim only in accordance withfederal law and procedures.
B. Pending final determination at the hearing of the validity of the debtasserted by the claimant agency, no action shall be taken in furtherance ofcollection through the setoff procedure allowed under this article.
C. No person hearing the debtor's application contesting the claimantagency's claim shall have been involved in the prior circumstances which haveculminated in such dispute.
D. No issue may be considered at the hearing which has been previouslylitigated.
E. In the case of setoff arising out of delinquent local taxes, the scope ofthe hearing shall be limited to determining whether the setoff is a taxobligation that remains due and owing to the locality, and shall not addressthe underlying basis of the tax obligation.
(Code 1950, § 58-19.13; 1981, c. 408; 1982, c. 621; 1984, cc. 675, 720; 1996,cc. 363, 413; 1997, c. 496.)
