5703-7-13 State income tax refund offsets to collect overdue child support from obligors and overpaid child support from recipients; portion of joint refund not belonging to obligor or recipient.

(A) Refunds of income taxes under Chapter 5747. of the Revised Code, after application of section 5747.12 of the Revised Code, are subject to offset under section 5747.121 of the Revised Code to collect overdue child support from obligors and under section 5747.12 3 of the Revised Code to collect overpaid child support from recipients. The tax commissioner will identify those taxpayers due a refund who are subject to such offset based upon information provided by the department of job and family services.

The refunds of those taxpayers will be deposited into the child support intercept special account in the case of obligors, or sent to the department of job and family services in the case of recipients, to the extent the refunds do not exceed the outstanding balance to be collected by such offset. Any remaining portion of the tax refunds will be paid to the taxpayers. The commissioner will immediately make such payments except as provided in paragraph (B) of this rule.

(B) (1) In the case of taxpayers who file joint returns, only the portion of the refund belonging to the obligor or recipient is subject to the offset under paragraph (A) of this rule. The burden is on the taxpayers to prove that a portion of the refund does not belong to the obligor or recipient. The commissioner will notify the taxpayers by ordinary mail that they have twenty-one days from receipt of the notice to provide such proof. The proof must include a calculation of the portion of the refund due each taxpayer. In making the calculation, the taxpayers shall utilize information shown on their joint income tax return and the attachments thereto, and they shall be guided by the principles set forth in appropriate federal revenue rulings. If no such proof is submitted within the twenty-one day period, the full refund will be subject to offset under paragraph (A) of this rule.

(2) If the taxpayers have provided a calculation under paragraph (B)(1) of this rule and the commissioner concurs, the offset under paragraph (A) of this rule will be applied solely to that portion of the refund shown by the calculation as belonging to the obligor or recipient, and any remaining portion of the refund not required to be deposited into the child support intercept special account or sent to the department of job and family services in accordance with paragraph (A) of this rule will be refunded to the taxpayers. The commissioner will immediately make such payments.

(3) If the taxpayers have provided a calculation under paragraph (B)(1) of this rule and the commissioner does not concur, the commissioner will notify the taxpayers by ordinary mail of the commissioner's revised calculation. The notice will advise them that they have twenty-one days from receipt of the notice to file a complaint with the commissioner concerning the revision, and that they may include in their complaint a request for a hearing. If the taxpayers do not file such complaint within the twenty-one day period, the commissioner's revised calculation will be substituted for that of the taxpayers, and the commissioner will proceed in the same manner as under paragraph (B)(2) of this rule.

(4) If the taxpayers timely file a complaint under paragraph (B)(3) of this rule, the commissioner will review the complaint. If a hearing has been requested, the commissioner will schedule one and notify the taxpayers of the date, time, and location. The hearing is solely to present evidence on whether the commissioner's revised calculation is correct. Subsequent to the hearing, the commissioner will make any further correction as the commissioner deems proper and issue a final determination. A copy of the final determination will be served on the taxpayers personally or by certified mail. The taxpayers may appeal the commissioner's final determination as provided in section 5717.02 of the Revised Code. The commissioner will not make any offset or payment on the refund until sixty days after all administrative and judicial remedies provided by law have been exhausted. At that time, the revised calculation, as finally determined, will be substituted for that of the taxpayers, and the commissioner will proceed in the same manner as under paragraph (B)(2) of this rule.

(C) For purposes of this rule, notices sent by the commissioner by ordinary mail are rebuttably presumed to be received by the taxpayers seven days after the mailing thereof.

(D) Nothing in this rule shall be construed to limit any subsequent corrections, assessments, or refunds within the applicable statutes of limitation.

(former TX-47-13); Eff 1-10-87; Replaces: former 5703-7-13 and 5703-7-14, eff. 11-11-04
Rule promulgated under: RC 5703.14
Rule authorized by: RC 5703.05
Rule amplifies: RC 5747.121
R.C. 119.032 review dates: Exempt