No. 27572 (Amendment): R21-3-12. Injured Spouse Relief

DAR File No.: 27572
Filed: 12/01/2004, 04:17
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment establishes procedures to be followed when a state agency intends to apply to a debt the tax overpayment received from a joint tax return.

 

Summary of the rule or change:

The rule requires that written notice be given by an agency to the joint taxpayers whose state tax overpayment is subject to attachment by the agency, that the agency intends to apply the tax overpayment to the debt, and that the non-debtor spouse may be entitled to "injured spouse relief". The rule requires the notice to identify the debt, to state the taxpayer's right to a hearing to determine whether the taxpayer is entitled to injured spouse relief, to state the requirements for injured spouse relief, and to state that the taxpayer has 30 days to file a request for hearing. The rule also requires the taxpayer to timely file a written request for hearing or be deemed to have waived the right to claim the relief.

 

State statutory or constitutional authorization for this rule:

Subsections 63A-8-201(3)(a), (b), (c), (d), and (k); and 59-10-529(1)(b); and Sections 63A-3-303, 63A-3-304, 63A-3-305, and 63A-3-306

 

Anticipated cost or savings to:

the state budget:

When a tax overpayment is made on a joint tax return and an agency intends to apply the overpayment to a debt owed by one of the joint taxpayers, the agency's current practice is to give notice to the taxpayers that their tax overpayment is subject to offset. The proposed rule requires that the agency's notice be in writing and that it contain specific information regarding "injured spouse relief" and the time limits for requesting such relief. Because the rule requires an agency to give specific information in a written notice, the agency may be required to modify a form that it currently is using. The procedures, however, will save the agency in administrative efficiencies. Both the costs and savings are not readily measurable. However, the savings appears to outweigh the costs.

 

local governments:

Because the rule applies only to state agencies, there is no cost or savings to local government.

 

other persons:

Because the rule does not require anything of the taxpayer, the rule does not impose direct costs or savings on individuals.

 

Compliance costs for affected persons:

Because the rule does not require anything of the taxpayer, the rule does not impose direct costs or savings on individuals.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

The rule applies to state agencies and individuals. Therefore, there is no fiscal impact on businesses.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Debt Collection
Room 5100 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

 

Direct questions regarding this rule to:

Kevin V. Olsen at the above address, by phone at 801-366-0547, by FAX at 801-366-0268, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/17/2005

 

This rule may become effective on:

01/20/2005

 

Authorized by:

Gwen Anderson, Director

 

 

RULE TEXT

R21. Administrative Services, Debt Collection.

R21-3. Debt Collection Through Administrative Offset.

R21-3-12. Injured Spouse Relief.

(1) When there is an administrative offset match on a joint tax return, the agency shall send written notice to both taxpayers that it intends to apply the tax overpayment to the account receivable and that if either taxpayer qualifies as an injured spouse, that taxpayer may not be required to have his or her tax overpayments applied to the debt. The notice shall be mailed to the taxpayers at their current address on file with the Tax Commission.

(2) The notice shall state:

(a) the date, the amount of the account receivable, the name of the original creditor and the name of the debtor associated with the account receivable;

(b) a statement of the taxpayer's right to a hearing to determine whether the taxpayer is entitled to "injured spouse relief";

(c) a statement of what is required to qualify for "injured spouse relief"; and

(d) a statement of the time limits for filing a written request for hearing.

(3) Before "injured spouse relief" can be obtained, the taxpayer must timely file with the agency a request for hearing to determine whether the taxpayer is entitled to such relief. The taxpayer's request for hearing must be filed within thirty (30) days of the date of the notice. If a written request is not timely filed with the agency who sent the notice, the taxpayer shall be deemed to have waived the right to request "injured spouse relief" and the agency shall apply the tax overpayment to the account receivable.

 

KEY: accounts receivable administrative offset

[August 13, 2002]2005

Notice of Continuation May 3, 2002

63A-8-204(6)