13-001 Code Vt. R. 13-000-001-X - HEARING PROCEDURE FOR STATE TAX OFFSET APPEALS

32 VSA Chapter 151, Subchapter 12 permits the Agency of Human Services to certify to the Commissioner of Taxes debts owed to the Agency of Human Services. The Commissioner of Taxes is in turn authorized to collect debts for the Agency of Human Services by setting off the debts against any income tax refunds which the state may otherwise owe to a debtor taxpayer.

Pursuant to 32 VSA § 5940 and 3 VSA Chapter 25, the Secretary of the Agency of Human Services has adopted the following rules and regulations for the conduct of state tax offset appeals brought under 32 VSA § 5936. Appeals taken under these regulations are limited to contesting the amount and validity of a contestant's debt. Procedure for "State Tax Offset Appeals".

Section 1 Definitions

As used in these regulations:

a. "Claimant Department" means any department within the Agency of Human Services.

b. "Contestant" means a person who contests a claimant department's assessment of his debt to the claimant department.

Section 2 Informal Resolution

a. Prior to the initiation of an appeal under these regulations, the contestant and the claimant department are encouraged to attempt a negotiated settlement.

b. Prior to an appeal and upon a contestant's request, a claimant department shall provide the contestant with any information relevant to the claimant department's computation of the debt.

Section 3 Appeals

a. State Tax Offset Appeal

i A taxpayer whose state income tax refund has been set off by the Vermont Department of Taxes may apply to the Secretary of the Agency of Human Services for a "State Tax Offset" hearing.

ii The taxpayer must request a hearing no later than thirty (30) days after the Tax Department mails the taxpayer the notice of setoff.

iii A decision under a "State Tax Offset Appeal" shall be determinative of the amount of the contestant's debt for purposes of tax setoff certification to the Vermont Department of Taxes.

b. Child Support Debt Appeals (IRS Tax Offsets and Contested Child Support Debt)

i A person whose child support debt to the Department of Social Welfare has been certified to the Internal Revenue Service for the purposes of setoff against his or her federal income tax refund, or a person who wishes to contest the Department of Social Welfare's assessment of his or her child support debt, may request a "Child Support Debt Appeal."

ii A "Child Support Debt Appeal" may be requested at any time any may be joined with a "State Tax Offset Appeal."

Section 4 Initiation of Appeals

a. All appeal requests shall be in writing and shall be sent to the claimant department.

b. The contestant's appeal request shall contain:

i The contestant's computation of the total amount, if any, owed the claimant department;

ii A concise statement of the basis of the contestant's computation;

iii The contestant's home address, social security number; and, iv A request for hearing.

Section 5 Notice of Hearing

a. Within thirty (30) days after receipt of an appeal request, the claimant department shall forward the petition to the Secretary or the designated hearing officer for filing and scheduling unless the request is withdrawn.

b. The Secretary, or the designated hearing officer, shall set a date, time, and place of hearing, and shall give the parties written notification of the same including purpose of the hearing,statutory authority, Vermont Administrative Rule Number, and statement of the contested debt.

c. Mailing shall constitute actual knowledge to that person or party.

Section 6 Conduct of Hearings

a. Hearings shall be conducted by a hearing officer designated by the Secretary.

b. Parties to the hearing may be represented by counsel.

c. Oral proceedings shall be recorded. The record shall contain the pleadings, motions and intermediate rulings, including the following:

i All evidence received or considered;

ii A statement of matters officially noticed;

iii Questions and offers of proof, objections, and rulings thereon;

iv Proposed findings and exceptions; and,

v Any decision, opinion or report.

Section 7 Discovery/Evidence

a. If requested by the claimant prior to the hearing date, the claimant department shall provide the contestant with any information relevant to the claimant department's computation of the debt.

b. The parties may present relevant evidence and arguments. Oral testimony shall be under oath.

c. Civil rules of evidence, as applied in Vermont courts, shall be followed.

d. Notice that notice may be given of judicially cognizable facts in accordance with Title 3, Vermont Statutes Annotated, § 810(4).

Section 8 Decisions

a. The hearing officer shall determine the amount of debt, if any, owed to the claimant department. Within thirty (30) days of hearing, a decision shall be rendered stating the amount of the debt owed. If a tax setoff is involved, the decision shall also include the amount of the tax refund to be applied toward the debt and the contestant's outstanding balance after the setoff. The decision shall include a concise statement of the facts and conclusions of law relied upon.

b. The hearing officer may base an order upon the parties' stipulation or agreement. The parties, or the contestant alone, may stipulate to a discontinuance of the appeal at any time.

c. In the event a party fails, without good cause, to appear at the scheduled time and place after receiving notice, the hearing officer shall issue a default order based upon evidence or affidavit.

d. Parties shall be notified, either personally or by mail of any order or decision. Mailing shall constitute actual knowledge to that person or party.

Section 9 Appeals

a. The hearing officer's decision may be appealed within thirty (30) days to the superior court of the county in which the contestant resides.

b. Appeals to superior court shall be governed by the Vermont Rules of Civil Procedure.

Section 10 Superceded Rule

This proposed rule is intended to supercede Rule 83-A15. 33 V.S.A. § 5940

Notes

13-001 Code Vt. R. 13-000-001-X

EFFECTIVE DATE: June 2, 1984 Secretary of State Rule Log # 84-21