Colorado § 25.5-1-139 - State income tax refund offset - rules.

§ 25.5-1-139. State income tax refund offset - rules.

(1) (a) At any time prescribed by the department of revenue, but not less frequently than annually, the state department shall certify to the department of revenue information regarding persons who are obligated to the state for overpayment of benefits received pursuant to articles 4 to 6 of this title 25.5. The information must include certification of the amount of overpayment that has been determined by final agency action, has been ordered by a court as restitution, or has been reduced to judgment.

(b) The information regarding overpayment of benefits must also include the name and the social security number of the person obligated to the state for the overpayment, the amount of the overpayment, and any other identifying information required by the department of revenue.

(2) As a condition of certifying an overpayment to the department of revenue as provided in subsection (1) of this section, the state department must ensure that the obligated person has been afforded the opportunity for a conference at the county department level and afforded the opportunity for an appeal to the state department pursuant to section 25.5-4-207. In addition, the state department, prior to final certification of the information specified in subsection (1) of this section to the department of revenue, must notify the obligated person, in writing, at the obligated person's last-known address, that the state intends to refer the person's name to the department of revenue in an attempt to offset the obligation against the person's state income tax refund. The notification must inform the obligated person of the opportunity for a conference with the county department, as described in section 25.5-4-207, or the county contracted to administer a centralized member integrity service pursuant to section 25.5-1-210, and of the opportunity for an appeal to the state department pursuant to section 25.5-4-207. In addition, the notice must specify issues that may be raised at an evidentiary conference or on appeal, as provided by this subsection (2), by the obligated person in objecting to the offset. The notice must specify that the obligated person may not object to the fact that an overpayment occurred. A person who has received a notice pursuant to this subsection (2) may request, within thirty days after the date the notice was mailed, an administrative review or evidentiary conference, as provided in this subsection (2).

(3) Upon notification by the department of revenue of amounts deposited to the state treasurer pursuant to section 39-21-108, the state department shall determine whether the amount deposited is related to the centralized member integrity service, established in section 25.5-1-210. If the amount is not related to the centralized member integrity service, the state department shall disburse the amounts to the appropriate county for processing for distribution to the federal, state, or local agency to which the person is obligated. If the amount is related to the centralized member integrity service, the county contracted to administer the centralized member integrity service, as described in section 25.5-1-210, shall determine the federal, state, or local agency to which the person is obligated, and the state department shall distribute the money to the federal, state, or local agency to which the person is obligated.

(4) The state department shall adopt rules pursuant to article 4 of title 24 establishing procedures to implement this section.

(5) For a program that is not subject to the centralized member integrity service described in section 25.5-1-210, the home addresses and social security numbers of persons subject to the income tax refund offset, provided to the state department by the department of revenue, must be sent to the respective county department of human or social services. For a program that is subject to the centralized member integrity service described in section 25.5-1-210, the home addresses and social security numbers of persons subject to the income tax refund offset, provided to the state department by the department of revenue, must be sent to the county contracted to administer the centralized member integrity service pursuant to section 25.5-1-210.

Source: L. 2026: Entire section added, (HB 26-1429), ch. 374, p. 2311, § 11, effective June 4.

Cross references: For the legislative declaration in HB 26-1429, see section 1 of chapter 374, Session Laws of Colorado 2026.

PART 2

PROGRAMS TO BE ADMINISTERED BY THE DEPARTMENT