2006 Indiana Code - CHAPTER 12.5. SEIZURE OF STATE INCOME TAX REFUNDS FOR DELINQUENT CHILD SUPPORT
IC 31-16-12.5Chapter 12.5. Seizure of State Income Tax Refunds for Delinquent Child Support
IC 31-16-12.5-1
Exception
31-16-12.5-1 Sec. 1. This chapter does not apply to a support
order entered in a Title IV-D case.
As added by P.L.27-2004, SEC.4.
IC 31-16-12.5-2
Petition; procedure; intervention
31-16-12.5-2 Sec. 2. (a) A custodial parent may file a petition for
a setoff of child support from a state income tax refund payable to a
child support obligor in:
(1) the court that entered the original child support order; or
(2) a court of competent jurisdiction located in the county of
residence of the custodial parent.
(b) The petition must be verified and must include all of the
following:
(1) The full name of:
(A) the obligor;
(B) the custodial parent; and
(C) each child to whom the obligor owes child support.
(2) An averment that:
(A) the obligor's aggregate child support arrearage on the
date the petition is filed is at least one thousand five hundred
dollars ($1,500); and
(B) the obligor has intentionally violated the terms of the
most recent child support order.
(3) An indication of whether the custodial parent:
(A) has received or is receiving assistance under the Title
IV-A program; or
(B) has assigned child support payments under IC 12-14-7-1;
during the period for which child support is owed by the
obligor.
(c) The court shall notify the child support bureau of the
department of the pendency of an action under this chapter if the
petition:
(1) indicates under subsection (b)(3)(A) that the custodial
parent has received or is receiving assistance; or
(2) indicates under subsection (b)(3)(B) that an assignment has
occurred.
(d) The state has a right to intervene as a party in a hearing under
this chapter if the custodial parent has received or is receiving
assistance as described in subsection (b)(3)(A) or if an assignment as
described in subsection (b)(3)(B) has occurred.
As added by P.L.27-2004, SEC.4. Amended by P.L.145-2006,
SEC.238.
IC 31-16-12.5-3
Prohibition
31-16-12.5-3 Sec. 3. A custodial parent may not bring an action
under this chapter with respect to an obligor's state income tax refund
for a calendar year if the child support bureau has initiated an action
under IC 6-8.1-9.5 to set off the obligor's tax refund for that calendar
year.
As added by P.L.27-2004, SEC.4.
IC 31-16-12.5-4
Determination of refund eligibility and filing status
31-16-12.5-4 Sec. 4. (a) A court that receives a petition under
section 2 of this chapter shall send an order requiring the department
of state revenue to determine the obligor's eligibility for a state
income tax refund, whether the obligor filed a joint state income tax
return, and if the obligor filed a joint state income tax return, the
name and address of the individual with whom the obligor filed the
joint state income tax return, if the court preliminarily determines
that probable cause exists to believe that the obligor named in the
petition:
(1) was at least one thousand five hundred dollars ($1,500) in
arrears on child support payments at the time the custodial
parent filed the petition under section 2 of this chapter; and
(2) has intentionally violated the terms of the most recent
support order.
(b) The department of state revenue, upon receiving an order
under subsection (a), shall notify the court whether the obligor
named in the order:
(1) is eligible for a state income tax refund; and
(2) has filed a joint state income tax return, and if the obligor
has filed a joint state income tax return, the name and address
of the individual with whom the obligor filed the joint state
income tax return.
As added by P.L.27-2004, SEC.4. Amended by P.L.2-2005, SEC.75.
IC 31-16-12.5-5
Hearing; notice
31-16-12.5-5 Sec. 5. (a) If the court receives notification under
section 4(b) of this chapter that the obligor is eligible for a state
income tax refund, the court shall set the matter for a hearing at least
thirty (30) days after the date that the court receives notification
under section 4(b) of this chapter.
(b) If the court sets the matter for a hearing under subsection (a),
the court must send notice of the hearing by certified mail, return
receipt requested, to the most recent address of the obligor. The
notice must include the date of the hearing and a copy of the petition
filed under section 2 of this chapter.
(c) If the court receives notification under section 4(b) of this
chapter that the obligor filed a joint state income tax return, the court
shall send a notice to the individual with whom the obligor filed a
joint state income tax return by certified mail, return receipt
requested, and inform the individual:
(1) of the hearing date;
(2) that the court may order the individual's and obligor's joint
state income tax refund to be intercepted for the obligor's past
due child support payments; and
(3) that the individual may petition the court or provide
testimony at the hearing that the individual believes that part of
the individual's and obligor's joint state income tax refund
should not be intercepted for the obligor's child support and
should be paid to the individual.
As added by P.L.27-2004, SEC.4.
IC 31-16-12.5-6
Final order; deadline
31-16-12.5-6 Sec. 6. (a) The court shall issue a final order for a
state income tax refund setoff following a hearing under this chapter
if the court determines by clear and convincing evidence that the
obligor named in the petition:
(1) is at least one thousand five hundred dollars ($1,500) in
arrears on child support payments; and
(2) has intentionally violated the terms of the most recent child
support order applying to the obligor.
(b) The final order must include the amount of child support
arrearage that the department of state revenue shall withhold from
the obligor's state income tax refund and the obligor's Social Security
number.
(c) In order for the setoff to take effect with respect to a state
income tax refund, the final order of the court must be received by
the department of state revenue before November 1 of the taxable
year for which the tax refund is payable.
As added by P.L.27-2004, SEC.4.
IC 31-16-12.5-7
Distribution of refund
31-16-12.5-7 Sec. 7. (a) The department of state revenue shall
submit the refund amount set forth in the final order to the clerk of
the circuit court for distribution.
(b) If the custodial parent:
(1) has received or is receiving assistance under the Title IV-A
program; or
(2) has assigned child support payments under IC 12-14-7-1;
during the period of time for which child support is owed by the
obligor, the court shall determine whether a portion of the refund
must be distributed to the state under subsection (c).
(c) If the court determines that an amount is owed to the state
under subsection (b), the court shall order the clerk of the circuit
court to distribute the refund:
(1) to the state in an amount determined by the court; and
(2) to the custodial parent in any amount remaining after
distribution under subdivision (1).
As added by P.L.27-2004, SEC.4.
IC 31-16-12.5-8
Interest charges
31-16-12.5-8 Sec. 8. A final order issued under section 6 of this
chapter may include interest charges in an amount determined under
IC 31-14-12-1 or IC 31-16-12-2.
As added by P.L.27-2004, SEC.4.
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