Virginia Code 58.1-524: Notification of Department by claimant agency; action of Department.
A. A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the Department and supply information necessary to identify the debtor whose refund is sought to be setoff. Notification to the Department and the furnishing of identifying information must occur on or before a date specified by the Department. The claimant agency shall verify that the delinquent debt is valid before notifying the Department requesting setoff, and shall promptly notify the Department when subsequent payments or other events render all or a portion of the debt invalid.
Terms Used In Virginia Code 58.1-524
- Claimant agency: means any administrative unit of state, county, city or town government, including department, institution, commission, authority, or the office of Executive Secretary of the Supreme Court, any circuit or district court and the Internal Revenue Service. See Virginia Code 58.1-520
- Debtor: means any individual having a delinquent debt or account with any claimant agency which obligation has not been satisfied by court order, set aside by court order, or discharged in bankruptcy. See Virginia Code 58.1-520
- Delinquent debt: means any liquidated sum due and owing any claimant agency, or any restitution ordered paid to a clerk of the court pursuant to Virginia Code 58.1-520
- Department: means the Department of Taxation. See Virginia Code 58.1-1
- Refund: means any individual's Virginia state or local income tax refund payable pursuant to § Virginia Code 58.1-520
B. The Department, upon receipt of notification, shall determine whether the debtor to the claimant agency is entitled to a refund from the Department. Upon determination by the Department that a debtor specified by the claimant agency qualifies for such a refund, the Department shall notify the claimant agency that a refund is pending, specify its sum, and indicate the debtor’s address as listed on the tax return.
C. The Department, upon certification as hereinafter provided in this article, shall set off the certified debt against the refund to which the debtor would otherwise be entitled.
Code 1950, § 58-19.11; 1981, c. 408; 1982, c. 621; 1984, c. 675; 1996, cc. 363, 413.