Colorado § 26.5-4-119 - State income tax refund offset - rules.

§ 26.5-4-119. State income tax refund offset - rules.

(1) (a) At any time prescribed by the department of revenue, but not less frequently than annually, the department shall certify to the department of revenue information regarding persons who are obligated to the state for overpayment of child care assistance. The information must include certification of the amount of overpayment, which has been determined by final agency action or has been ordered by a court as restitution or has been reduced to judgment.

(b) The information must also include the name and the social security number or tax identification number of the person obligated to the state for the overpayment, the amount of the obligation, and any other identifying information the department of revenue may require.

(2) As a condition of certifying an overpayment to the department of revenue as provided in subsection (1) of this section, the department shall ensure that the obligated person has been afforded the opportunity for a conference at the county department level and the opportunity for an appeal to the department pursuant to section 26.5-4-108. In addition, the department, prior to final certification of the information specified in subsection (1) of this section to the department of revenue, shall notify the obligated person, in writing, at the 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 and of the opportunity for an appeal to the department pursuant to section 26.5-4-108. In addition, the notice must specify issues that the obligated person may raise at an evidentiary conference or on appeal, as provided by this subsection (2), in objecting to the offset and must specify that the obligated person may not object to the fact that an overpayment occurred. If the obligated person desires an evidentiary conference or appeal as provided in this subsection (2), the person must request the conference or appeal within thirty days after the date on which the notice was mailed.

(3) Upon receiving notice from the department of revenue of amounts deposited with the state treasurer pursuant to section 39-21-108, the department shall disburse the amounts to the appropriate county to process for distribution to the state or local agency to whom the person is obligated.

(4) The executive director shall promulgate rules establishing procedures to implement this section.

(5) The department shall provide the home addresses and social security numbers or tax identification numbers of persons subject to the income tax refund offset, provided to the department by the department of revenue, to the appropriate county department.

Source: L. 2022: Entire article added, (HB 22-1295), ch. 123, p. 684, § 3, effective July 1. L. 2023: (2) and (3) amended, (HB 23-1301), ch. 303, p. 1835, § 60, effective August 7.