Iowa Admin. Code r. 441-11.4 - Setoff against state income tax refund, rebate, or other state payments, including, for example, state employee wages
(1)
Criteria for setoff.
a. A
claim against a debtor may be made by the department for public assistance
debts when:
(1) A debtor has failed to
negotiate a repayment agreement for that program area of public assistance ,
or
(2) A repayment agreement is not
current , and
(3) The cumulative
balance of the applicable debts in 11.4(1)"a"(1) and (2)
exceeds $50.
b. A claim
against a debtor will not be made by the department for debts when:
(1) The debt is in suspended status due to an
exception to policy or is in an appeal status, or
(2) The debt is being recovered through grant
or benefit reduction.
(2)
Frequency of submission.
The department will submit to the department of administrative services twice
each month a list of those debtors who have a debt meeting the criteria in
subrule 11.4(1).
(3)
Pre-setoff notice. The department will mail written
notification to a debtor to inform the debtor of the amount the department
intends to claim and apply to debts in each program when:
a. The department is notified by the
department of administrative services that the debtor is entitled to a state
income tax refund, rebate, or other state payment;
b. The department makes claim against the
debtor .
(4)
Method for division of joint payments. When either spouse
wishes to request a division of a jointly or commonly owned right to payment, a
written request shall be submitted to the department within 15 days after the
written notification is mailed. When the request is received within the 15-day
limit, the spouse's proportionate share of a jointly or commonly owned right to
payment, as determined by the department of administrative services, shall be
released by the department of administrative services unless:
a. Other claims are made on that portion of
the jointly or commonly owned right to payment, or
b. That spouse was also a member of the same
household and the spouse's income and resources were or should have been
considered in the calculation of public assistance .
(5)
Appeal rights. When a
debtor wishes to contest the claim of the department , a written request shall
be submitted to the department within 15 days after the written notification is
mailed. When the request is received within the 15-day limit, a hearing will be
granted pursuant to rules in 441-Chapter 7.
a.
If the department is upheld in the final decision, the setoff process shall
continue and the refund, rebate, or other state payment will be applied to the
appropriate delinquent debts.
b. If
the department is reversed in the final decision, the debtor 's refund, rebate,
or other state payment will be released to the debtor by the department of
administrative services.
(6)
Debt setoff. If the
department has not received a request for an appeal hearing or a request for
division of a jointly or commonly owned right to payment within 15 days after
the date the written notification is mailed, the department will notify a
debtor of the final decision regarding the claim by mail.
(7)
Application of setoff.
The department will apply any setoff received from the department of
administrative services as a result of this rule to the debtor 's debts as
indicated on the written notification mailed to the debtor and in accordance
with rule 441-11.3 (217).
Any amount remaining after the setoff shall be released back to the individual.
Notes
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