12 CSR 10-2.250 - Reciprocal Agreements with Other States for Tax Refund Offsets
(1) In general, the department may enter into
reciprocal agreements with other states to set off any income tax refund due
any individual taxpayer of Missouri for debts of any other state that agrees to
do the same for Missouri.
(2)
Definition of Terms.
(A) Certified debt-A
debt, as that term is defined in section
143.782(2),
RSMo, certified by one (1) state to another
state to be eligible for a refund offset under the laws of the state referring
the debt.
(B) Debtor-See section
143.782(3),
RSMo.
(C) Reciprocal agreement-An
agreement between Missouri and another state for each state to offset tax
refunds due to a taxpayer of the state against debts owed by the taxpayer to
the other state.
(D) Refund-See
section 143.782(5),
RSMo.
(3) Basic
Application.
(A) All reciprocal agreements
will provide-
1. Each state will offset
individual income tax refunds due taxpayers of the state for certified debts of
the other state;
2. The state
referring a debt (referring state) will certify that the debt is eligible for
offset under the laws of the referring state;
3. The offsetting state will give notice of
the offset to the taxpayer as required by the law of the offsetting
state;
4. Each state will bear its
own costs and neither state will charge the other state;
5. If a taxpayer is entitled to a return of
any portion of a tax refund that has been offset, the referring state will
return the amount due to the taxpayer;
6. Debts owed to the offsetting state will be
offset before debts owed to the referring state;
7. Each state will comply with all applicable
state and federal confidentiality laws, regulations, and policies, including
section 32.057, RSMo;
8. Either party may immediately terminate the
agreement if the other party breaches the confidentiality provisions of the
agreement;
9. The method of
exchange of information and the method of offsetting the tax refund;
10. Neither state will certify a debt of less
than twenty-five dollars ($25) for a tax refund offset; and
11. The offsetting state will provide notice
to a non-obligated spouse of the non-obligated spouse's right to challenge the
offset when a tax refund offsets against a joint or combined return. The notice
will comply with the offsetting state's requirements for due process.
(B) A reciprocal agreement may
contain any other terms that do not conflict with any required terms.
Notes
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