2005 Idaho Code - 1-1624 — SET-OFF PROCEDURE FOR DELINQUENT DEBTS OWED TO THE COURTS

                                   TITLE  1
                          COURTS AND COURT OFFICIALS
                                  CHAPTER 16
                           MISCELLANEOUS PROVISIONS
    1-1624.  SET-OFF PROCEDURE FOR DELINQUENT DEBTS OWED TO THE COURTS. (1)
The purpose of this legislation is to enable the Idaho supreme court, as the
supervisor of the unified and integrated judicial system of this state, to
apply for a set-off of state tax refunds and credits owing to a taxpayer in
payment of a delinquent debt owed by the taxpayer to the courts of this state.
It is the intent of the legislature that this set-off remedy be in addition to
and not in substitution of any other remedy or action provided for by law for
the collection of these amounts.
    (2)  The state tax commission shall withhold and set-off any income tax or
tax credit refund of any taxpayer, upon notification from the Idaho supreme
court, to collect any debt owed to the courts by the taxpayer which is
delinquent. A remittance by the state tax commission to the court pursuant to
this section shall be deemed to be, to the extent of the remittance, a refund
to the taxpayer and any other person who has a claim to such refund, and the
state tax commission shall not be liable to any person because of a refund
that has been remitted under this section.
    (3)  A "debt owed to the courts" means any assessment of fines, court
costs, surcharges, penalties, fees, restitution, moneys expended in providing
counsel and other defense services to indigent defendants, or other charges
which a court judgment has ordered to be paid to the court or which a party
has agreed to pay in criminal or civil cases and includes any interest or
penalty on such unpaid amounts as provided for in the judgment or by law,
except this section does not apply to a debt owed to the courts which does not
exceed the sum of fifty dollars ($50.00). A debt owed to the courts is
delinquent when it is not paid according to the terms of the judgment or order
or any agreement entered into between the court and the taxpayer for the
payment thereof.
    (4)  Any claims for current or past-due child support presented under
section 56-203D, Idaho Code, or claims for set-off of income tax refunds
against any tax liability or overpayment of benefits owed to the state
department of labor pursuant to section 63-3077A, Idaho Code, shall take
priority over any claim for delinquent debt owed to the courts under this
section.
    (5)  The set-off or withholding of a refund due a taxpayer shall be
remitted  only after the following conditions have been met:
    (a)  A debt owed to the courts is delinquent. This section shall not be
    used to satisfy any amount ordered by the court until the order or
    judgment is final and the time for appealing the judgment or order has
    elapsed without any further right on the part of the person owing the
    amount to judicial review.
    (b)  All outstanding tax liabilities collectible by the state tax
    commission are satisfied.
    (c)  The supreme court shall forward to the state tax commission the full
    name and social security number of the taxpayer. The tax commission shall
    notify the supreme court of the amount of refund due the taxpayer and the
    taxpayer's address on the income tax return.
    (d)  Upon remittance of any set-off or part thereof, the court shall cause
    a written notice to be sent to the taxpayer whose refund is subject to the
    set-off. Notice of the set-off shall be sent by United States mail to the
    taxpayer at the address listed on the income tax return. Within twenty-one
    (21) days after such notice has been mailed (not counting Saturday, Sunday
    or a state holiday as the twenty-first day), the taxpayer may file a
    written request for an administrative waiver of the set-off in accordance
    with procedures established by the supreme court, which may impose
    reasonable requirements concerning the information necessary to process
    the request for an administrative waiver. No issues or claims previously
    decided in a court order or judgment, or admitted or agreed to by the
    taxpayer, shall be considered in connection with a request for an
    administrative waiver. In the case of a refund that is set-off in error
    under this section, the court shall reimburse the taxpayer.
    (6)  The supreme court shall create a suspense account to pay amounts that
are found to be set-off in error under the provisions of subsection (5)(d) of
this section or to refund any balance that remains after the debt to the
courts is satisfied. If no written request for an administrative waiver of the
set-off is made within twenty-one (21) days, such failure shall be deemed a
waiver of the right to contest the set-off and the amount of the set-off shall
be removed from the suspense account and shall be credited to the taxpayer's
debt to the courts. The court may waive the twenty-one (21) day time limit in
appropriate circumstances.
    (7)  When set-off is attempted on a joint return under the provisions of
this section, the taxpayer not specified to be the obligor in the judgment or
agreement creating the debt owed to the court may file a written objection
within the time limits specified in subsection (5)(d) of this section and the
set-off will be limited to one-half (1/2) of the joint refund.
    (8)  If the refund is insufficient to satisfy the entire debt owed to the
courts, the remainder of the debt may be collected as provided by law or
submitted for set-off against subsequent refunds.
    (9)  The proceeds from the set-off shall be credited to the debt owing to
the courts and shall be distributed as provided by law.
    (10) The state tax commission and the supreme court independently may
adopt rules governing its administration of this section and are authorized to
enter into a written agreement to implement and facilitate the provisions of
this section, including the method of making remittances of the amount which
has been set-off pursuant to this section.