2014 Kentucky Revised Statutes CHAPTER 131 - DEPARTMENT OF REVENUE 131.565 Definition of "state agency" -- Establishment of claim by state agency pursuant to statutory provision, administrative regulation, or ordinance -- Requests to withhold individual income tax refund.
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131.565 Definition of "state agency" -- Establishment of claim by state agency
pursuant to statutory provision, administrative regulation, or ordinance -Requests to withhold individual income tax refund.
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For purposes of KRS 131.560 to 131.595, "state agency" or "state agencies"
shall include the Court of Justice and any local government, as those terms are
defined in KRS 45.241.
No state agency shall request the withholding of any individual income tax
refund unless there is specific provision in statute, administrative regulation, or,
in the case of a local government, ordinance, for debtor appeal and hearing
rights for that particular debt.
State agencies having the statutory, regulatory, or other legal provisions
described in subsection (2) of this section shall establish claims against
Kentucky individual income tax refunds by notifying the commissioner of
revenue in writing by a date established by the department and, by dates
agreed to by the department and each state agency, shall furnish a list of all
liquidated debts due the agency for which withholding is required for individual
income tax refunds due to be paid to the debtor of the claimant agency. This
list shall be submitted in such form and contain such information as may be
required by the commissioner of revenue to facilitate identification of the
refunds to be withheld. As used in this section the term "liquidated debt" means
a legal debt for a sum certain, which has been certified by the claimant agency
as final due and owing. The claimant agency must have made reasonable
efforts to collect such debt, and must have provided the debtor the opportunity
for appeal and formal hearing as provided by statute, administrative regulation,
or local ordinance. The claimant agency shall send thirty (30) days' prior written
notification to the debtor of the intention to submit the claim to the department
for setoff as provided in KRS 131.570.
The individual income tax refund withholding procedures provided in KRS
131.560 to 131.595 shall be in lieu of the procedures set forth in KRS 427.130
and 44.030 only with regard to sums due to a debtor from the department.
No state agency shall request the withholding of any individual income tax
refund unless the debt for which withholding is requested is in a liquidated
amount.
Each state agency requesting the withholding of any individual income tax
refund shall indemnify the department against any and all damages, court
costs, attorneys fees, and any other expenses related to litigation which arises
concerning the administration of KRS 131.560 to 131.595 as it pertains to a
refund withholding action requested by such agency.
Those state agencies requesting the withholding of individual income tax
refunds shall, on a per unit cost or other equitable basis determined by the
department, reimburse the department for all development, implementation,
and administration costs incurred but not otherwise funded under the
provisions of KRS 131.560 to 131.595.
The department may decline the withholding of individual income tax refunds
from agencies if the request would adversely impact the operation of the
department.
Effective:June 25, 2013
History: Amended 2013 Ky. Acts ch. 88, sec. 7, effective June 25, 2013. -Amended 2005 Ky. Acts ch. 85, sec. 148, effective June 20, 2005. -- Amended
2004 Ky. Acts ch. 118, sec. 4, effective July 13, 2004. -- Created 1984 Ky. Acts
ch. 405, sec. 8, effective July 13, 1984.
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