488.5028. Court cost delinquencies, income tax setoff may be requested, procedure. - Missouri Statutes

Court cost delinquencies, income tax setoff may be requested,procedure.

488.5028. 1. If a person fails to pay court costs, fines, fees, orother sums ordered by a court, to be paid to the state or politicalsubdivision, a court may report any such delinquencies in excess oftwenty-five dollars to the office of state courts administrator and requestthat the state courts administrator seek a setoff of an income tax refund.The state courts administrator shall set guidelines necessary to effectuatethe purpose of the offset program.

2. The office of state courts administrator shall provide the departmentof revenue with the information necessary to identify each debtor whose refundis sought to be setoff and the amount of the debt or debts owed by each suchdebtor who is entitled to a tax refund in excess of twenty-five dollars.

3. The department of revenue shall notify the office of state courtsadministrator that a refund has been setoff on behalf of a court and shallcertify the amount of such setoff, which shall not exceed the amount of theclaimed debt certified. When the refund owed exceeds the claimed debt, thedepartment of revenue shall send the excess amount to the debtor within areasonable time after such excess is determined.

4. The office of state courts administrator shall notify the debtor bymail that a setoff has been sought. The notice shall contain the following:

(1) The name of the debtor;

(2) The manner in which the debt arose;

(3) The amount of the claimed debt and the department's intention tosetoff the refund against the debt;

(4) The amount, if any, of the refund due after setoff of the refundagainst the debt; and

(5) The right of the debtor to apply in writing to the court originallyrequesting setoff for review of the setoff because the debt was previouslysatisfied.

Any debtor applying to the court for review of the setoff shall file a writtenapplication within thirty days of the date of mailing of the notice and send acopy of the application to the office of state courts administrator. Theapplication for review of the setoff shall contain the name of the debtor, thecase name and number from which the debt arose, and the grounds for review.The court may upon application, or on its own motion, hold a hearing on theapplication. The hearing shall be ancillary to the original action with theonly matters for determination whether the refund setoff was appropriatebecause the debt was unsatisfied at the time the court reported thedelinquency to the office of state courts administrator and that the debtremains unsatisfied. In the case of a joint or combined return, the noticesent by the department shall contain the name of the nonobligated taxpayernamed in the return, if any, against whom no debt is claimed. The noticeshall state that as to the nonobligated taxpayer that no debt is owed and thatthe taxpayer is entitled to a refund regardless of the debt owed by such otherperson or persons named on the joint or combined return. The nonobligatedtaxpayer may seek a refund as provided in section 143.784, RSMo.

5. Upon receipt of funds transferred from the department of revenue tothe office of state courts administrator pursuant to a refund setoff, thestate courts administrator shall deposit such funds in the state treasury tobe held in an escrow account, which is hereby established. Interest earned onthose funds shall be credited to the escrow account and used to offsetadministrative expenses. If a debtor files with a court an application forreview, the state courts administrator shall hold such sums in question untildirected by such court to release the funds. If no application for review isfiled, the state courts administrator shall, within forty-five days of receiptof funds from the department, send to the clerk of the court in which the debtarose such sums as are collected by the department of revenue for credit tothe debtor's account.

(L. 2003 H.B. 600)

Effective 7-01-03