Iowa Code r. 441-11.5 - Setoff against federal income tax refund or other federal payments, including, for example, federal employee wages
(1)
Criteria for setoff.
a. Debtors not participating in SNAP shall be
subject to collection action through the treasury offset program (TOP) which
includes, but is not limited to, federal salary offset and federal tax refund
offset.
(1) Debtors shall be referred to TOP
if they are delinquent in repaying their SNAP debt and there is a claim or
combination of claims with an unpaid balance that exceeds $25.
(2) No claim that is less than three months
old or more than ten years old as of January 31 of the offset year shall be
referred. EXCEPTION: Claims that have had a final judgment entered are not
subject to the ten-year time limit.
(3) Debtors are delinquent in repaying their
SNAP debt if:
1. A repayment agreement has not
been signed and 120 days have elapsed since the due date of the demand letter
as defined in 441-subrule 65.21(4) minus any days the claim was not subject to
collection action because of an appeal.
2. A repayment agreement has been signed but
the debtor has failed to make the agreed-upon payments and has failed to make
up the missed payments. The debtor shall be referred to TOP when 120 days have
elapsed since the first of the month following the month that the debtor failed
to make the agreed-upon payment and has not subsequently made up the missed
payment.
b. A
claim against an individual will not be referred to TOP by the department of
inspections, appeals, and licensing (DIAL) 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
benefit reduction.
(2)
Setoff under TOP. DIAL
shall, by December 1 of each year, submit a notification of liability for
delinquent claims to the Department of the Treasury.
(3)
Pre-setoff notice. DIAL
shall notify a debtor identifying the amount the department intends to refer to
TOP for offset.
(4)
Offset
fee. For each offset that the Department of the Treasury effects
against an individual referred to TOP, Treasury will charge the individual a
fee.
(5)
Appeal
rights. When an individual wishes to contest the delinquent status of
a claim as identified by DIAL, a written request shall be submitted to DIAL
within 60 days of the date of the pre-offset notice. When the request is
received within the 60-day limit, a review shall be granted.
DIAL shall determine if the claim is past due and legally enforceable and shall notify the individual in writing of the decision.
(6)
Application of setoff. DIAL shall apply any setoff received as
a result of this rule to the individual's SNAP debts.
Any amount remaining after the setoff shall be released back to the individual.
Notes
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