§ 57-38.3-05 — Procedure - Notification of taxpayer

North Dakota § 57-38.3-05

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-38.3: Setoff of Income Tax Refund

Text

1. Within a time specified by the commissioner, a claimant agency seeking to collect a
debt through setoff shall supply the information necessary, in a form and in the manner
prescribed by the commissioner, to identify each debtor whose refund is sought to be
set off and certify the amount of the debt or debts owed by each debtor.
2. If a debtor identified by a claimant agency is determined by the commissioner to be
entitled to a refund of at least twenty-five dollars, the commissioner shall approve the
transfer of an amount equal to the refund owed, not to exceed the amount of the
claimed debt certified, to the claimant agency. When the refund owed exceeds the
claimed debt, the commissioner shall send the excess amount to the debtor within a
reasonable time after such excess is determined.
3. At the time of the approval of the transfer of funds to a claimant agency pursuant to
subsection 2, the commissioner shall notify the claimant agency and the taxpayer or
taxpayers whose refund is sought to be set off of the amount approved for setoff.
4. Upon receipt of notice from the commissioner pursuant to subsection 3, the claimant
agency shall provide the taxpayer with written notice setting forth:
a. The name of the debtor.
b. The manner in which the debt arose.
c. The amount of the claimed debt.
d. The intention to set off the taxpayer's refund against the debt.
e. The amount of the refund in excess of the claimed debt.
f. The taxpayer's opportunity to give written notice to contest the setoff within thirty
days of the date of mailing of the notice.
g. The name and mailing address to which the application for a hearing must be
sent.
h. The fact that failure to apply for such a hearing, in writing within the thirty-day
period, will be deemed a waiver of the opportunity to contest the setoff.
5. In the case of a joint return, a notice provided pursuant to subsection 4 must also set
forth:
a. The name of the taxpayer named in the return, if any, against whom no debt is
claimed.
b. The fact that a debt is not claimed against such taxpayer.
c. The fact that such taxpayer may be entitled to receive a refund if it is due the
taxpayer regardless of the debt asserted against the taxpayer's spouse.
d. That in order to obtain a refund due to the taxpayer, such taxpayer must apply, in
writing, for a hearing with the claimant agency named in the notice within thirty
days of the date of the mailing of the notice.
e. The fact that failure to apply for such a hearing within thirty days of the mailing of
such notice will be deemed a waiver of the opportunity to contest the setoff.
6. Subdivisions f, g, and h of subsection 4 do not apply to debts submitted by the state
court administrator for collection through setoff.
7. Except as provided in this subsection, upon receipt of funds transferred pursuant to
subsection 2, the claimant agency shall deposit and hold such funds in an escrow
account until a final determination of the validity of the debt. The state court
administrator shall submit the transferred funds upon receipt to the state treasurer for
deposit in the manner provided by law unless an application for a hearing under
subsection 5 is received.