HAR §17-606-3. Tax setoff process

(a) The department shall setoff any valid debt due and owing the depart- ment by the debtor against any debtor's refund. Any amount of the refund in excess of the amount retained to satisfy the debt shall be refunded to the debtor. (b) The department shall compile an annual list of debtors identified for a tax setoff. (c) A pretax setoff notice shall be mailed to each debtor. (d) The debtor shall be provided an opportunity for an informal review of the debt. (e) All debtors who receive an adverse informal review decision shall be provided an opportunity to request an administrative hearing. 606-4 (f) The informal review and pretax setoff administrative hearing shall be conducted and concluded prior to the setoff of the debtor's state tax refund. (g) The debtor's name shall be referred to the comptroller, department of accounting and general services (DAGS), for tax setoff if no pretax setoff review is requested; or if the debt is established in the review or the pretax setoff administrative hearing. (h) At the time the setoff is identified, the debtor shall be notified by the comptroller, DAGS, of the State's intention to apply the state income tax refund against the debt. (i) The debtor shall be provided the opportunity to request an administrative hearing to contest the setoff, regardless of whether an administrative hearing was requested at the time of the pretax setoff notice. (j) The setoff against the debtor's state income tax refund shall become final if an administrative hearing is not requested. [Eff 10/4/90; am and comp 3/19/93; am 10/16/95 ] (Auth: HRS §346-14) (Imp: HRS §§231-51 to -59)