Tax Rules: Final: 5703-7
5703-7-13 - State income tax refund
offsets to collect overdue child support from obligors and
overpaid child support from recipients; portion of joint
refund not belonging to obligor or recipient.
(A) Refunds of income taxes under Chapter 5747. of the
Revised Code, after application of section 5747.12 of the
Revised Code, are subject to offset under section 5747.121 of
the Revised Code to collect overdue child support from
obligors and under section 5747.123 of the Revised Code to
collect overpaid child support from recipients. The tax
commissioner will identify those taxpayers due a refund who
are subject to such offset based upon information provided by
the department of job and family services.
The refunds of those taxpayers will be deposited into the
child support intercept special account in the case of
obligors, or sent to the department of job and family
services in the case of recipients, to the extent the refunds
do not exceed the outstanding balance to be collected by such
offset. Any remaining portion of the tax refunds will be paid
to the taxpayers. The commissioner will immediately make such
payments except as provided in paragraph (B) of this rule.
(B)(1) In the case of taxpayers who file joint returns, only
the portion of the refund belonging to the obligor or
recipient is subject to the offset under paragraph (A) of
this rule. The burden is on the taxpayers to prove that a
portion of the refund does not belong to the obligor or
recipient. The commissioner will notify the taxpayers by
ordinary mail that they have twenty-one days from receipt of
the notice to provide such proof. The proof must include a
calculation of the portion of the refund due each taxpayer.
In making the calculation, the taxpayers shall utilize
information shown on their joint income tax return and the
attachments thereto, and they shall be guided by the
principles set forth in appropriate federal revenue rulings.
If no such proof is submitted within the twenty-one day
period, the full refund will be subject to offset under
paragraph (A) of this rule.
(2) If the taxpayers have provided a calculation under
paragraph (B)(1) of this rule and the commissioner concurs,
the offset under paragraph (A) of this rule will be applied
solely to that portion of the refund shown by the calculation
as belonging to the obligor or recipient, and any remaining
portion of the refund not required to be deposited into the
child support intercept special account or sent to the
department of job and family services in accordance with
paragraph (A) of this rule will be refunded to the taxpayers.
The commissioner will immediately make such payments.
(3) If the taxpayers have provided a calculation under
paragraph (B)(1) of this rule and the commissioner does not
concur, the commissioner will notify the taxpayers by
ordinary mail of the commissioner’s revised calculation. The
notice will advise them that they have twenty-one days from
receipt of the notice to file a complaint with the
commissioner concerning the revision, and that they may
include in their complaint a request for a hearing. If the
taxpayers do not file such complaint within the twenty-one
day period, the commissioner’s revised calculation will be
substituted for that of the taxpayers, and the commissioner
will proceed in the same manner as under paragraph (B)(2) of
this rule.
(4) If the taxpayers timely file a complaint under paragraph
(B)(3) of this rule, the commissioner will review the
complaint. If a hearing has been requested, the commissioner
will schedule one and notify the taxpayers of the date, time,
and location. The hearing is solely to present evidence on
whether the commissioner's revised calculation is correct.
Subsequent to the hearing, the commissioner will make any
further correction as the commissioner deems proper and issue
a final determination. A copy of the final determination will
be served on the taxpayers personally or by certified mail.
The taxpayers may appeal the commissioner’s final
determination as provided in section 5717.02 of the Revised
Code. The commissioner will not make any offset or payment on
the refund until sixty days after all administrative and
judicial remedies provided by law have been exhausted. At
that time, the revised calculation, as finally determined,
will be substituted for that of the taxpayers, and the
commissioner will proceed in the same manner as under
paragraph (B)(2) of this rule.
(C) For purposes of this rule, notices sent by the
commissioner by ordinary mail are rebuttably presumed to be
received by the taxpayers seven days after the mailing
thereof.
(D) Nothing in this rule shall be construed to limit any
subsequent corrections, assessments, or refunds within the
applicable statutes of limitation.
Effective: 11-11-04
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5747.121
Prior effective dates: 1-10-87