Sec.52-362e-3. Withholding of state income tax refunds

(a) When appropriate

The withholding of an obligor's state income tax refund for the collection of past-due support is appropriate provided, in IV-D assistance cases, the criteria of subdivisions (1) and (2) of this subsection are met, and, in IV-D non-assistance cases, the criteria of subdivisions (1) and (3) of this subsection are met.

(1) General criteria

The following criteria shall be met in all cases submitted to DAS for the withholding of a state income tax refund:

(A) A notice of action shall be mailed to the obligor prior to submittal.

(B) The obligor shall be given an opportunity for a fair hearing prior to submittal.

(C) Before submittal, BCSE or a cooperating agency shall verify the accuracy of the past-due support amount; provided, if such information was verified previously, it need not be reverified.

(2) Criterion for assistance cases

The combined amount of past-due support for all accounts shall be at least $150.00 in assistance cases submitted to DAS for the withholding of a state income tax refund.

(3) Criterion for non-assistance cases

The combined amount of past-due support for all accounts shall be at least $500.00 in non-assistance cases submitted to DAS for the withholding of a state income tax refund.

(b) Procedure

(1) Notice of action

At least sixty days prior to submittal to DAS, the department shall mail a notice of action to all obligors identified for potential withholding.

(2) Prehearing review

The obligor's name shall not be submitted to DAS if the results of a prehearing review indicate that the case is not appropriate for such action.

(3) Fair hearing

If a fair hearing is requested, submittal shall not be made unless the fair hearing is denied or dismissed, or a decision which upholds the proposed withholding is rendered prior to the department's submittal to DAS.

(4) Submittal to DAS

Subject to subdivisions (2) and (3) of this subsection, the obligor's name shall be submitted to DAS no earlier than sixty days after the mailing date of the notice of action. The department shall submit to DAS the names of all obligors whose cases are appropriate for submittal.

(5) Submittal updates

Following the initial submittal, the department shall submit to DAS periodic updates of the amount of past-due support owed by those obligors whose names were submitted for withholding.

(6) Distribution of withheld amounts

(A) In general

Withheld amounts shall be distributed in accordance with subsection (c) of Section 52-362e of the Connecticut General Statutes and applicable federal law and regulations.

(B) Repayment by custodial party

The custodial party shall be obligated to repay the state for any withheld amounts received that are subsequently found to be erroneous, in excess of the amount owed at time of distribution, or refunded by the Department of Revenue Services to a non-obligated spouse in cases where the withholding is based on a joint return.

(C) Refund to obligor

If the amount withheld is in excess of the amount owed at time of distribution, the excess shall be refunded to the obligor, or jointly to the parties filing a joint return.

(D) Special rule for joint returns

If withholding is made to satisfy non-assistance past-due support from a refund based on a joint return, the department may delay distribution until notified that the non-obligated spouse's proper share of the refund has been paid or for a period not to exceed six months from notification of withholding, whichever is earlier.

(Effective November 28, 1994; Amended June 8, 1998)